What Are Some Key Auto Repair Industry Trends?
The word “trend” has itself become very trendy. Almost so much so that it’s lost meaning to many people. But we’re not talking about social media trends here. We’re talking about economic and business trends. We’re talking statistics. What they mean and what they say about the auto repair industry. So, what are the key auto repair industry trends
Let us begin by looking into the past. The recent past. What do the statistics about the auto repair industry over the last five years look like? Is this an industry that is healthy and booming? Or is it beleaguered and sick?
The answer is most certainly the former. The auto repair industry has been trending up in recent years. According to a report published by Ibis world, the auto repair industry has grown at a steady pace of 2.5% over the past five years. 2.5% may not sound like an impressively substantial number, but for growth over the period we’re discussing, it is quite significant.
The publishers of the report link this growth to an increase in disposable income as well as 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.
Furthermore, the average lifespan of automobiles today is longer than it has been in the past. Overall, drivers are holding on to their vehicles longer and longer are hoping and expecting to get more mileage out of their vehicles. To do this requires regular maintenance and more repairs as the vehicle ages. Hence, we see an increase in the demand for auto repair shops.
But that’s the past. That’s behind us. What about the future? Surely, that’s more important. Well, as 2018 begins, this trend of growth in the auto repair industry is expected to continue. The Ibis world report concludes that the economic factors that contributed to the growth of the auto repair industry will continue for the foreseeable future, from 2018 through to 2022. So, it is fair to say that the auto repair industry is trending upwards.
Given that individual drivers are getting more out of their vehicle(s) and are investing more money into their vehicle’s repair and maintenance is clearly a good trend for the auto repair industry. But with fleets of vehicles, we’re dealing in bulk. What companies do with their fleets can really dictate the trends within the auto repair industry. So, what’s going on with fleet vehicles?
A report from V12Data found that the average age of the U.S. vehicle fleet has increased by 17% over the past decade. This indicates that it is not just individual motorists who are trying to get more out of their autos. Another interesting tend the report found is that the auto repair industry is experiencing a shift away from dealership repairs, which now account for only 25% of aftermarket auto repair. This is good news for auto repair franchises, which are gaining more and more of the market.
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