THE ECONOMIC AND ENVIRONMENTAL IMPACT OF THE HISTORIC AND CLASSIC MOTOR INDUSTRY IN THE UK

39 6. Direct economic impact of repair and maintenance 6.1 Introduction Maintenance, restoration and repair costs make up a significant proportion of the economic impact of classic vehicles. This spending ranges from routine maintenance and the fitting of spare parts, to high-value restoration work and the preparation of vehicles for races, rallies or other events. Within this section, we consider both the economic impact of spending on maintenance and repair and the impact of spending on spare and replacement parts and accessories. Given the range of work done and magnitude of the sector, we have considered this separately from the other ownership costs set out in Section 5 .4, although in reality these costs could be considered further costs of ownership. 6.2 The size of the market To inform our analysis, we have used data from the FBHVC on average ownership costs, findings from our own survey and industry-level data from the ONS. For expenditure estimates, we have again primarily relied on data from the FBHVC, which set out the average spend per vehicle for a number of categories, including: • Tyres • Brake parts • Tools • Engine oils • Other oils and greases • Light bulbs • Major restoration work • Garage and cover • Minor repair work • Routine maintenance For modelling purposes, to ensure consistency with national accounting classifications, these have been categorised as either primarily maintenance and repair costs, where the key characteristic is the specialised labour required (such as the major restoration work), or primarily driven by the sale of parts and other goods (such as the sale of tyres or engine oils). However, clearly there is some overlap between the two - a service component exists with the sale of parts and other goods. Similarly, through the undertaking of restoration work, new parts may be required. As such we present both separate economic estimates for the two, and with a greater degree of confidence a combined economic impact for the entirety of the classic vehicle repair and maintenance sector. Based on expenditure estimates per vehicle for each category above and our estimates for the total stock of classic vehicles, we determine the total market sizes as follows: → T otal spend of £2.71 billion on maintenance and repair of classic vehicles in 2019; and → A furthe r £0.44 billion per annum spend on parts and accessories for these vehicles. → Combined, these give a total market of £3.15 billion per annum for new parts, maintenance and repair of classic vehicles.