Data on the Tire Repair Business
Today, there seems to be more misinformation out there than ever before. With everybody freely (and vociferously) voicing their opinions, perspectives, and “hot takes”, figuring out the truth can be exceedingly difficult. However, somewhat contradictorily, there is also more and more talk about “big data”. Usually this term is used in conjunction with information governments, advertisers, and tech companies are collecting about you. But data is not inherently sinister nor is it necessarily hard to understand. The truth of the matter is that, to get at the truth of the matter, you need data.
The Tire Repair Business
The tire repair business looks to be in great shape. Even before we dig into the data, there seem to be a plethora of reasons of why business should be great for tire repair shops. First, most American families own at least one vehicle. There are more Americans than ever before and there are more vehicles on American roads than ever before. And every vehicle needs four tires. (Okay, not those three-wheeled cars, but are those still even around anymore?) And, of course, most tire repair shops do more than just service tires. But even if they didn’t, there is still a huge customer base and a massive amount of potential business out there.
Tire Repair Business Data
On the surface, at least, it seems like the tire repair business should be doing just fine. If not booming. But what do the data say? Do the data back up our initial impressions? First, we need to understand how the data are collected. Tire repair businesses are categorized as part of the automotive aftermarket. The automotive aftermarket is the secondary market for automobiles. This market consists of all the manufacturing, remanufacturing, retailing, and distribution done in conjunction with automobiles after their initial sale by the original manufacturer.
The data for the automotive aftermarket is very promising indeed. In 2016, the global automotive aftermarket was valued at $335.23 billion (all figures are in U.S. dollars). Clearly, this makes the automotive aftermarket a massive industry. The American numbers are also impressive. Looking at just the revenue generated from the sales and installation of parts, the U.S. numbers for 2014 and 2015 were $66.54 billion and $68.88 billion, respectively. And tires accounted for more of this money than any other part.
A Deeper Dive
But as we dive deeper into the data, what is the outlook for the future? Is it equally as rosy for the tire repair business? If anything, it’s even better. The global automotive aftermarket is predicted to break the one trillion-dollar mark by 2022. These are mind boggling numbers. What accounts for this growth? One factor is simply population growth. But another has to do with the average age of vehicles. The average age of an American vehicle is currently at a record high: 11.5 years old (as of 2015). This is key because older vehicles need more maintenance and repairs than do newer vehicles. And this means more business for tire repair shops.
Get In Touch
If you would like to learn more about the tire repair business or how to apply to become a Tuffy Tire & Auto Service franchisee, please contact us today.Back