Auto Maintenance and Repair Franchises in the US Industry Market Research Report Now Available from IBISWorld
The Auto Maintenance and Repair Franchises industry stalled during the recession as drivers opted for public transportation and put off vehicle repairs; however, this trend is expected to reverse as more commuters find jobs and their vehicles require maintenance. For these reasons, industry research firm IBISWorld has added a report on the Auto Maintenance and Repair Franchises industry to its growing industry report collection.
Los Angeles, CA (PRWEB) May 02, 2013
The Auto Maintenance and Repair Franchises industry has hit the brakes as a result of the recession. During the past five years, industry revenue declined at an average annual rate of 2.0% to $30.3 billion, largely due to declines in the overall economy. The total vehicle miles driven are affected by how many people drive to work and how many goods need to be shipped via freight. The recession caused a decline in disposable income and corporate profit, which stifled the use of vehicles and, consequently, the need to repair them. These factors are expected to cause industry revenue to decline an additional 2.3% during 2013. “An increase in the national unemployment rate caused many consumers to stop commuting to work, ultimately reducing the number of vehicles on the road,” says IBISWorld industry analyst Andrew Krabeepetcharat. The national unemployment increased at an average annual rate of 6.1% during the past five years, with a steep incline of 60.3% in 2009. Over the same period, declines in per capita disposable income also pushed many consumers to opt for self repairs through purchases from auto-parts retailers. At the same time, increases in the world price of crude oil over the period caused many drivers to opt for public transportation, carpooling and cycling to get to work, reducing the need for maintenance on their vehicles.
Over the next five years, industry revenue is expected to pick up along with the economy. Economic factors that stifled the economy during the past five years are expected to improve during the forecast period and are expected to provide steady growth opportunities for the industry. The national unemployment rate is projected to decline at an average annual rate of 4.8%, causing an increase in the number of workers who commute by car. Over the same period, the per capita disposable income is forecast to increase at an average annual rate of 2.4%, bringing car owners back to industry establishments instead of doing self repairs. Also, the increasing technological complexity of cars will drive people to seek expertise from industry establishments.
The Auto Maintenance and Repair Franchises industry is highly fragmented with more than 4,000 enterprises commanding a network of more than 35,000 franchises. According to Krabeepetcharat, the industry’s top four players are expected to account for 15.0% of industry revenue, with only one player accounting for more than 5.0% of industry revenue. Although the number of franchises fell at an annualized 1.8% over the five years to 2013, IBISWorld expects the level of concentration has increased as franchisees have increased the number of franchisees under their belt. For more information, visit IBISWorld´s Auto Maintenance and Repair Franchises in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments that provide a wide range of mechanical, electrical and engine maintenance and repair services for automotive vehicles. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude non-franchise data. They show the total number of franchise outlets, total franchise revenue and the average profit margin earned by franchisees. Our reports also highlight the largest franchisors by market share.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation´s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2013/5/prweb10694246.htm