How Are Automotive Franchise Businesses Doing?
Automotive franchise businesses are far from alone in having faced adversity in the past year or so. As the world begins to return to normal, you might be wondering, how are automotive franchise businesses doing?
The Coronavirus Pandemic Has Thrown Up Many Questions. Has The Future Of Automotive Franchise Business Been Called Into Question?
Some industries are wondering how quickly and if at all they can return to their pre-COVID status. Will people flock back to movie theaters when it is safe to do so or has digital streaming made an irrevocable dent on cinemas? Will the cruise ship industry ever recover? What about tourism more generally? Many questions abound. What questions are there concerning automotive franchise businesses?
Frankly, not many. Just about every jurisdiction across the United States listed automotive franchises as essential businesses. And it’s not hard to understand why. People need their vehicles. Even if they’re not driving into work anymore, they need them to get groceries, to run errands, to go to the hospital, and more. Automotive franchise businesses remained open or only closed for a brief period because the public still needed their services.
What’s The Outlook For Automotive Franchise Businesses Right Now?
So, while most franchises and businesses were significantly damaged by COVID-19, automotive franchise businesses didn’t sustain much of a hit. By summer 2020, many of the “hard” lockdowns around the country had softened and many people went on road trips just to get out of the house. Taking a road trip to a national park, for example, was and remains one of the safest things you can do outside. And Americans seemed to figure this out, as evidenced by a study that found 44% of American drivers took more road trips in summer 2020.
Many automotive franchisees were worried that, even though they were able to remain open, they wouldn’t have many customers because people would hardly be driving at all. But this wasn’t the case. Indeed, a remarkable 46% of respondents to the previously cited poll said that they were relying on their vehicles even more during the pandemic and that they were driving more than usual. People kept driving their cars and so they kept on needing automotive franchises to service their cars. Combine this with the long-term trends of more drivers and a higher age of the average vehicle, and the outlook looks good for automotive franchise businesses. The automotive repair market is predicted to grow from $691.7 billion in 2020 to $828.6 billion in 2023 at a compound annual growth rate (CAGR) of 7%.
Tuffy Tire & Auto Service
To learn more about the automotive franchise businesses Tuffy has to offer, please contact us via our website.Back