Automotive Repair & Maintenance Services

First Research, Inc.
November 3, 2014
10 Pages - SKU: FRRS5371782
Countries covered: United States

Automotive Repair & Maintenance Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide repair and maintenance services for passenger cars and light trucks. Major US companies include Bridgestone, Jiffy Lube, Meineke, Midas, Monro Muffler Brake, and Safelite Group.

The US automotive repair and maintenance services industry includes about 160,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $90 billion. Separate industry profiles cover Automotive Oil Change & Lubrication Services and Car Washes, which are included in the industry.

COMPETITIVE LANDSCAPE

Demand depends on car usage and the number of cars on the road. The profitability of individual companies depends on convenient location and good marketing. Large companies can maximize use of expensive diagnostic equipment and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by providing superior customer service or offering specialized services. The US industry is highly fragmented: the 50 largest companies generate less than 10 percent of revenue.

Competition includes other venues that provide automotive services, including some gas stations, car dealerships, and branches of chain stores, like Sears and Kmart. An estimated 70 percent of out-of-warranty vehicles are repaired at independent shops, according to the Automotive Service Association.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include mechanical repair (about 50 percent of US industry revenue), collision repair (30 percent) car washes (10 percent), and oil change and lube (10 percent). Mechanical jobs are classified as repairs to undercar systems (mufflers and exhausts, transmissions, brakes, and shock absorbers) or...



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