Car Washes
Description
Companies in this industry provide cleaning, washing, and waxing services for cars, trucks, vans, and trailers. Major companies include Autobell Car Wash, Mister Car Wash, and Zips Car Wash (all based in the US), along with Mr Wash Car Wash (Germany) and Uhoda (Belgium).
There are about 60,000 carwash locations in the US, according to Carwash.com. The US accounts for about 45% of the global car wash market, according to DetailProPOS. China, the US, and India are among the top countries in terms of new car sales, according to Motor1.
The US car wash industry includes about 16,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of nearly $10 billion. The industry includes full- and self-service car wash facilities, as well as truck and bus washes and vehicle detailing services.
COMPETITIVE LANDSCAPE
Demand is driven by new car sales and growth in consumer income. The profitability of individual firms depends on favorable location and efficient operations. There are few economies of scale. Chains have advantages in advertising and customer recognition. Small firms can compete successfully by having good locations. The industry is highly fragmented: the 50 largest US companies hold about 20% of the market.
A key source of competition comes from do-it-yourself consumers who prefer to wash their cars at home, also known as "driveway washers."
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are exterior wash, exterior and interior cleaning, waxing, underside cleaning, vacuuming, and premium detailing. Detailing services consist of intensive interior and exterior cleaning, as well as waxing and polishing by hand. Some facilities offer vehicle maintenance and repair and safety inspection services and sell automotive products. Washing and cleaning services for light trucks and automobiles account for about 85% of the industry revenue. Other services include automatic washing and waxing services, detailing services, and maintenance and repair services for heavy trucks and buses.
There are three types of car washes: a conveyor or "tunnel" wash system, where the car is pulled through a tunnel lined with washing equipment; an in-bay automatic or "rollover" wash system, where the car is parked in a bay (usually with the customer inside) and the washing equipment moves over the car; and a self-service or "wand" wash system, where the car is parked in a bay and the customer manually washes the car with provided equipment. Self-service and roll-over locations typically have several bays, while one-conveyor tunnel locations are common. Automatic car washes can be touchless or friction-based washes, or a combination of both.
In-bay automatic and self-serve car wash systems require only minimal supervision, but conveyor systems require from one to fifteen attendants. Conveyor systems may handle as many as 130 cars per hour. Typical equipment includes sprayers, pumps, mitters, dryers, detection devices, and conveyors. Demand is typically highest on Saturday. Operators of conveyor car washes that require customers to exit their vehicle often have waiting rooms with amenities such as Wi-Fi, bathrooms, and snacks and beverage stations beyond traditional vending machine offerings. They typically sell products such as air fresheners, floor mats, and other car accessories.
Water is the primary raw material; detergents and waxes are also used. Car washes must have a waste water collection and treatment system to avoid the flow of detergents, road salts, oils, and other contaminants directly into municipal sewers. "Reclaimed" water is increasingly used in regions of the country with tight water supplies.
There are about 60,000 carwash locations in the US, according to Carwash.com. The US accounts for about 45% of the global car wash market, according to DetailProPOS. China, the US, and India are among the top countries in terms of new car sales, according to Motor1.
The US car wash industry includes about 16,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of nearly $10 billion. The industry includes full- and self-service car wash facilities, as well as truck and bus washes and vehicle detailing services.
COMPETITIVE LANDSCAPE
Demand is driven by new car sales and growth in consumer income. The profitability of individual firms depends on favorable location and efficient operations. There are few economies of scale. Chains have advantages in advertising and customer recognition. Small firms can compete successfully by having good locations. The industry is highly fragmented: the 50 largest US companies hold about 20% of the market.
A key source of competition comes from do-it-yourself consumers who prefer to wash their cars at home, also known as "driveway washers."
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are exterior wash, exterior and interior cleaning, waxing, underside cleaning, vacuuming, and premium detailing. Detailing services consist of intensive interior and exterior cleaning, as well as waxing and polishing by hand. Some facilities offer vehicle maintenance and repair and safety inspection services and sell automotive products. Washing and cleaning services for light trucks and automobiles account for about 85% of the industry revenue. Other services include automatic washing and waxing services, detailing services, and maintenance and repair services for heavy trucks and buses.
There are three types of car washes: a conveyor or "tunnel" wash system, where the car is pulled through a tunnel lined with washing equipment; an in-bay automatic or "rollover" wash system, where the car is parked in a bay (usually with the customer inside) and the washing equipment moves over the car; and a self-service or "wand" wash system, where the car is parked in a bay and the customer manually washes the car with provided equipment. Self-service and roll-over locations typically have several bays, while one-conveyor tunnel locations are common. Automatic car washes can be touchless or friction-based washes, or a combination of both.
In-bay automatic and self-serve car wash systems require only minimal supervision, but conveyor systems require from one to fifteen attendants. Conveyor systems may handle as many as 130 cars per hour. Typical equipment includes sprayers, pumps, mitters, dryers, detection devices, and conveyors. Demand is typically highest on Saturday. Operators of conveyor car washes that require customers to exit their vehicle often have waiting rooms with amenities such as Wi-Fi, bathrooms, and snacks and beverage stations beyond traditional vending machine offerings. They typically sell products such as air fresheners, floor mats, and other car accessories.
Water is the primary raw material; detergents and waxes are also used. Car washes must have a waste water collection and treatment system to avoid the flow of detergents, road salts, oils, and other contaminants directly into municipal sewers. "Reclaimed" water is increasingly used in regions of the country with tight water supplies.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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