New designs can require less frequent traditional repairs like tuneups that are a source of recurring revenue for independent auto repair shops.
Large companies can maximize use of expensive diagnostic equipment and have advantages in purchasing, distribution, and marketing. Generally, industry consumers are more affluent than the population at large, which makes sense when one considers that automotive after market accessories are discretionary in nature.
Advances in auto manufacturing technology are having many impacts on the auto repair business: Forecasts for higher personal disposable income suggest that auto repair industry operators will enjoy higher profit margins from services that they previously offered for free or at heavy discounts during the recent recession.
Competition includes other venues that provide automotive services, including some gas stations, car dealerships, and branches of chain stores, like Sears and Kmart. Auto repair shops perform an estimated 70 percent of repairs for out-of-warranty vehicles This Auto Repair Business market research report summary is from IBISWorld which also sells a full version of this report.
This increasing demand is forecast to raise the number of repair shop business locations by an annualized rate of 0.
Small companies can compete effectively by providing superior customer service or offering specialized services. Income Profile There are noticeable differences in the distribution of household income between the general U. These numbers indicate that funds spent on specialty equipment market products are discretionary in nature.
The profitability of individual companies depends on convenient location and good marketing. The US automotive repair and maintenance services market will grow four percent annually.
Compared to the U. Age Profile The average age of automotive after market consumers continues to increase. Hybrid designs and other new systems require additional training for mechanics; sometimes these changes can give auto dealers an advantage, if their teams are trained on a more regular cycle than the local auto repair shop.
Sales in this industry have historically been driven by a demanding and limited number of young males.
Vehicles These automotive after market consumers have an average of 2. In the overall U. The industry is expected to grow Business research automotve a low rate over the next two years. As auto repair business conditions improve going forward, auto repair shop operators will shift their focus to expanding their customer base by providing quality service.
Passenger cars are the dominant vehicle type with light trucks not far behind.Auto Repair Business Startup Costs. Opening an auto repair shop can be expensive, as seen by some of the startup cost estimates below for major auto repair franchises.
A lower cost alternative is to open a Mobile Auto Repair Business. The startup cost for a mobile auto repair business can be less than $2, according to mi-centre.com Automotive Business Review FCA’s Magneti Marelli agrees to acquire SmartMeUp Magneti Marelli, part of Fiat Chrysler Automobiles (FCA), has signed an agreement to acquire French company SmartMeUp, which is focused on the development of perception software for autonomous driving.
An independent, non-profit organization producing industry-driven automotive research and fostering dialogue on issues facing the automotive industry. The Center for Automotive Research (CAR) plays a role by providing research facilities, expertise and resources to give industry partners an in-depth view of the most current and groundbreaking developments in the automotive industry.
Use these Automotive After Market Links and Resources to learn how to get started with an automotive after market accessory business. Don’t forget you can receive free or low-cost training and free professional business advice, from your local Small Business Development Center!
Don’t miss our Free Business Plans on our Business Plans page. NPD is the premium provider of automotive industry analysis & market research for the US aftermarket auto industry to help track consumer behavior & trends. information company The NPD Group has named Nathan Shipley as executive director/industry analyst for the firm’s Automotive Aftermarket business.Download