Auto Repair Industry: The Stats
As we get into the new year, people are mapping out their 2018. For many, this will be the year they invest in themselves. In a business sense, this might mean finally becoming your own boss and purchasing a franchise. Obviously, we at Tuffy Tire & Auto Service recommend you consider purchasing an auto repair franchise.
But why? Apart from the fact that we are always looking for highly driven, entrepreneurial, hard workers to join the Tuffy organization, of course. But why should you? Of all the franchises you could buy, why get into the auto repair industry? This article will look at the cold hard statistics and try to get the bottom of whether the auto repair industry is a good one into which you should invest your time and money.
The first thing you want to look at before investing in an industry is whether that industry is growing. Investing in a shrinking one makes very little sense. So, is the auto repair industry growing? In short, yes.
According to a report published by Ibis world, the auto repair industry has grown at a steady pace from 2012-2017. The possible reasons for this are various, but principally it is linked to an increase in disposable income and corporate profit. The average person has seen an increase in their disposable income and is therefore more disposed to spend money on automobile repair and maintenance rather than spend the time to try to learn how to repair their vehicles themselves.
Another factor is the average lifespan of automobiles today. People are holding on to their vehicles longer and are expecting more out of them. To get the most out of your automobile requires regular maintenance and more repairs as the vehicle ages. This also increases the demand for auto repair industries. Going into 2018, this trend is expected to continue. The report concludes that the economic factors indicate this growth will continue for the foreseeable future, from 2018 through to 2022.
Auto Repair Industry Statistics
Here are some of the key numbers coming out of this Ibis world report: 64, 2.5%, 565,110, and 258,416. Those last two numbers are the number of employees and businesses currently operating within the auto repair industry theater entering 2018. So, clearly, you’re not the first person to think about the profitability of entering the auto repair industry. But don’t worry, it’s not full yet! That 2.5% is the growth seen from 2012-2017; the growth that is predicted to continue for at least five years. And that first number? The 64? That’s $64 billion; the total revenue generated by the auto repair industry in the United States in 2017.
Some More Stats
If you think we’re simply just cherry-picking numbers, other reports back this data up. A report published by V12Data found that the average age of the U.S. vehicle fleet has increased by 17% over the past decade; so it’s not just individuals looking to get more life out of their autos. We’re also seeing a shift away from dealership repairs, which now account for only 25% of aftermarket auto repair.
Get in Touch
To learn more about what all these auto repair industry statistics can mean for you in 2018, please get in touch with us today.Back