1/26/2014
Automotive Repair & Maintenance Services - Industry Overview - Hoover's
Automotive Repair & Maintenance Services
Industry Description
Companies in this industry provide repair and maintenance services for passenger cars and light trucks. Major US companies include Bridgestone, Jiffy Lube,
Meineke (a division of Driven Brands), Midas, Monro Muffler Brake, and Safelite Group.
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Industry Growth Rating
Reflects snapshot of industry performance vs. industry risk over the next 12 to 24 months relative to other U.S. industries, along with short descriptions of vital
demand and risk factors influencing the industry. Use to quickly determine the overall projected health of an industry.
Demand: Depends on miles driven
Need convenient location and good marketing
Risk: Dependence on auto insurance companies for work
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View Industry Trends & Opportunities
Call Preparation Questions
What kinds of special equipment does the company use?
Because of the increased technological complexity of newer cars, most shops have specialized diagnostic equipment to identify and fix problems. In body shops,
common equipment includes welders, paint booths, frame machines, and plasma cutters.
What does the company rely on to develop repair estimates?
Estimators may rely on car makers' recommendations or computer software to help develop an accurate estimate.
How often does a repair cost more than the estimate?
Repairs sometimes uncover other problems, resulting in additional work and charges in excess of the estimate. Regardless of the cause of error, inaccurate
estimates have resulted in unhappy customers and general mistrust of the auto repair industry.
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Automotive Repair & Maintenance Services - Industry Overview - Hoover's
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Executive Insight
Determining Repair Specialties
Car repair can be complex and require specialized skills or equipment. Advances in automotive technology have forced many companies to specialize in the types of
repairs they make or the types of cars they service, because of the different knowledge and equipment required. Within the mechanical field, for example, shops may
do undercar or underhood work.
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Business Challenges
Competition from Large Repair Shops and Chains — The greater operational and pricing efficiencies of large shops allow them to take business from smaller
shops, despite some having less convenient locations. Franchise chains, dealerships, and large shops also have advantages in buying, managing inventory, and
amortizing expensive equipment. Because of strong competition in local markets, repair shops have limited ability to raise prices.
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Related Industries
Automobile Dealers
Automobile Manufacturing
Automobile Parts Manufacturing
Automotive Oil Change & Lubrication Services
Automotive Parts & Accessories Stores
Battery Manufacturing
Car Washes
Luxury Automobile Dealers
Tire Dealers
Tire Manufacturing
Tire Wholesalers
Industry Websites
Auto Body Repair Network
Automotive Industries Association of Canada
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Automotive Repair & Maintenance Services - Industry Overview - Hoover's
Automotive Service Association
BodyShop Business
Bureau of Transportation Statistics
Canadian Automotive Repair & Service Council (CARS)
CollisionWeek
National Automobile Dealers Association
National Highway Traffic Safety Administration
National Institute for Automotive Service Excellence
Professional Tool & Equipment News
Associated Industry Codes
NAICS Codes
811111: General Automotive Repair
811112: Automotive Exhaust System Repair
811113: Automotive Transmission Repair
SIC Codes
7532: Top & body repair & paint shops
7533: Auto exhaust system repair shops
7534: Tire retreading and repair shops
View All Associated Industry Codes
Top Companies
Company
Sales
Employees Location
Sears, Roebuck and Co.
48,024.00M
249,000 Hoffman Estates, IL
AutoNation, Inc.
15,668.80M
21,000 Fort Lauderdale, FL
The Bidvest Group Limited
15,509.20M
Penske Automotive Group, Inc.
13,163.52M
16,700 Bloomfield Hills, MI
JM Family Enterprises, Inc.
11,500.00M
3,800 Deerfield Beach, FL
106,173 Johannesburg, Gauteng, South Africa
View All Companies In This Industry
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Automotive Repair & Maintenance Services - Industry Overview - Hoover's
Industry Forecast
from Hoover's/D&B sub sidiary First Research
The output of US automotive repair, maintenance, and services is forecast to grow at an annual compounded rate of 3 percent between 2013 and 2017. Data
Published: September 2013
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First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD.
INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
Industry Indicators
US consumer spending on services, an indicator of auto repair shop sales, rose 1.9 percent in November 2013 compared to the same month in 2012.
The average US retail price for diesel and regular gas, which influences consumers' use and wear of their automobiles, fell and rose 0.2 percent and 0.7 percent,
respectively, in the week ending January 13, 2014, compared to the same week in 2013.
Total US revenue for automotive repair and maintenance fell 5.6 percent in the third quarter of 2013 compared to the previous year.
Quarterly Industry Update - Nov 18, 2013
Challenge: Recommended Oil Change Intervals Increase — Auto repair and maintenance business may see fewer visits from customers as manufacturers call for
less-frequent oil changes on newer vehicles. Improved powertrain technology and use of more durable synthetic oils has caused the recommended oil change
interval to increase from 3,000 miles to 5,000 miles in many cases. Oil changes are a key opportunity for shops to suggest repairs, according to auto research firm
Polk. Onboard vehicle telematics represent another challenge for the industry. OEMs use vehicle telematics systems to suggest maintenance at the OEM dealer,
which can reduce demand for independent repair shops.
View All Quarterly Industry Updates
Fast Facts
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Automotive Repair & Maintenance Services - Industry Overview - Hoover's
Companies in this industry provide repair and maintenance services for passenger cars and light trucks.
Major US companies include Bridgestone, Jiffy Lube, Meineke (a division of Driven Brands), Midas, Monro Muffler Brake, and Safelite Group.
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).
Almost 80 percent of mechanical repair shop and 50 percent of collision repair shop customers are repeat, according to the Automotive Service Association (ASA).
While cash flow is generally even, some mechanical repair shops have higher sales in summer (when consumers tend to drive more), and some collision repair
shops have higher sales in winter (when more crashes occur).
View a Glossary of Acronyms
Latest News
Hon Hai in talks to partner with auto giants Audi, BMW The China Post 26-Jan-2014
Maruti Celerio to have auto-gear shift Deccan Chronicle 26-Jan-2014
Auto Repair Shops' Growth Stalls Forbes 26-Jan-2014
Owner of family-run auto repair shop in Lawrence celebrates 50 years in business NJ.com 26-Jan-2014
New law guesses wrong - repair shops aren’t interested in providing inspections Yle New s 25-Jan-2014
£1.2bn bill for damage to cars caused by potholes Scotsman 25-Jan-2014
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