Automotive Repair & Maintenance Services
Companies in this industry provide repair and maintenance services for passenger cars and light trucks. Major US companies include Firestone Complete Auto Care (a unit of Bridgestone), Jiffy Lube, Meineke, Midas International, Monro Auto Service and Tire Centers, and Safelite Group.
The global automotive repair and maintenance services industry is forecast to grow over 3% between 2021 and 2031, according to Future Market Insights, driven by increasing vehicle production and growing demand from emerging markets, notably China and India.
The US automotive repair and maintenance services industry includes about 162,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $115 billion.
Demand depends on miles driven and the number of cars on the road. The increased complexity of vehicles, which makes it more difficult for vehicle owners to perform do-it-yourself repairs, is also driving demand. 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% of revenue.
Competition includes other venues that provide automotive services, including some gas stations, car dealerships, and branches of mass merchandisers, like Sears and Kmart. An estimated 80% of all automotive repair work in the US is performed by independent shops as opposed to factory-authorized dealers, according to the Automotive Service Association.
The outlook for the automotive repair and maintenance industry in the age of autonomous vehicles is unclear. Consulting firm McKinsey predicts that driverless cars could reduce US auto accidents by 90%, greatly reducing the need for body work and other types of repairs. Already, features such as automatic braking, sensors, and onboard cameras are reducing the number of vehicle collisions and demand for bodywork and other repairs. Alternatively, some expect autonomous vehicles to create far greater demand for maintenance and repair services as self-driving cars may be in almost continuous use and subject to far more wear and tear. Also, autonomous vehicles are loaded with dozens of high-tech sensors, cameras, radar units, and other complex systems that will require fixing by skilled technicians.
Demand for auto repair and maintenance services plunged along with miles driven as the coronavirus pandemic froze economies worldwide in 2020. Uncertainty regarding the future of work and travel could affect demand for auto repair. A post-pandemic shift to more people working from home could reduce miles driven by commuters. Alternatively, fear of contagion on mass transit may result in more people driving to work, while reluctance to fly could result in more road trips.
Products, Operations & Technology
Major services include body repair, scheduled and preventive maintenance, oil changes, car washes, and brake repair. Body work includes exterior and interior
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms