Car Care: RAB The Pitch, January 2015
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Companies in this industry provide repair and maintenance services for passenger cars and light trucks.
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Total U.S. revenue for automotive repair and maintenance rose 0.4% in the third quarter of 2014 compared to
the previous year.
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(Source: Hoover’s, 2015)
Total revenue for the U.S. automotive service and repair industry was forecast to increase 2.1% in 2014 to
$59.5B, and continue to improve year-over-year through 2019.
(Source: IBISWorld, 2014)
There were just over 16,900 fast-lube facilities in the U.S. in early-2014 (down approximately 1.5% from the
previous year) with projected sales to total around $11.4B in 2014.
(Source: National Oil & Lube News, 2014)
Total new-car dealership body shop revenue rose to approximately $7.0B in 2013, up from $6.8 billion in
2012.
(Source: National Automobile Dealers Association, 2014)
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According to a study by the Car Care Council, 1 out of every 2 drivers looking for seasonal vehicle
maintenance does so in the spring.
(Source: Car Care Council, 2014)
According to a survey by the Car Care Council, oil changes accounted for 62% of drivers' most recent
vehicle service visits.
(Source: Car Care Council, 2014)
Through its nationwide network of safety and emissions check stations, the Car Care Council determined that
79% of all vehicles needed some form of repair or maintenance in 2013. Among the problems identified:
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22% of vehicles had low, dirty or leaking engine oil
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10% had worn windshield wiper blades
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20% had low or contaminated brake fluid
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9% had low, overfull or burnt transmission fluid
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15% had low or dirty power steering fluid
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16% had inadequate engine coolant
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17% needed new air filters
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12% had worn belts
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5% had worn hoses
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10% had batteries that were improperly secured
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9% had improperly inflated tires
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8% had tires with worn tread in need of replacement
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8% had headlights that needed to be replaced
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8% had a "check engine" light illuminated
(Source: Car Care Council, 2014)
The top 10 auto repair jobs of 2013, based on the number of consumer searches and requests for repair
estimates made through the AutoMD website included:
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Brake pads replacement
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Alternator replacement
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Water pump replacement
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Timing belt replacement
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Spark plugs replacement
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Fuel pump replacement
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Brake rotor replacement
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Radiator replacement
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Engine mount replacement
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Catalytic converter replacement
(Source: AutoMD.com, 2014)
The number of jobs per week done by body shops:
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5 or less, 24%
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6-10, 33%
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11-15, 17%
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15-20, 8%
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20-30, 13%
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More than 30, 5%
(Source: Body Shop Business, 2014)
Quick-lube facilities service an average of 37.8 cars per day (including inspections, repair work, etc.)
(Source: National Oil & Lube News, 2013)
According to a 2013 Auto Laundry News survey of fast-lube facilities, 80% of these businesses advertise in
some way. Media used most often (more than one answer possible):
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Direct mail, 45%
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Newspapers, 45%
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Yellow Pages, 43%
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Social media, 33%
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Radio, 31%
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Television, 12%
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Billboards, 10%
(Source: Auto Laundry News, 2013)
According to a survey of body shop operators, the respondents were asked how they market their services
(more than one answer possible):
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Word-of-mouth, 88%
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Website, 57%
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Yellow Pages, 44%
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Social media, 40%
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Community sponsorship, 38%
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Radio, 34%
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Direct marketing, 23%
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Television, 19%
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Billboards, 13%
(Source: Body Shop Business, 2013)
Businesses in the "Auto Repair, Services and Parking" category, on average, spend 0.2% of their total sales
revenue on advertising (which equates to 0.8% of their profit margin).
(Source: Schonfeld and Associates, Advertising Ratios and Budgets, 2014)
Major U.S. companies include:
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Bridgestone Retail Operations (BSRO), headquartered in Bloomingdale, IL, 2014 sales of $2.57B
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The U.S. retail arm of Japan-based tire giant Bridgestone owns and operates about 2,200 service centers
across the U.S. under the Firestone Complete Auto Care, Expert Tire, Tires Plus, and Wheel Works
banners.
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BSRO's stores offer a variety of automotive repair services, including drive train, engine, heating and
cooling, steering, and suspension maintenance, as well as tire sales.
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The business serves both consumers and commercial clients.
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BSRO (formerly BFS Retail & Commercial) also maintains its own credit card operation, Credit First
National Association.
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Jiffy Lube, headquartered in Houston, TX
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A leading provider of oil changes, the company boasts more than 2,100 outlets throughout North
America that are mostly franchised.
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The rest of its locations are company-owned and operated.
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Besides oil changes, Jiffy Lube facilities provide maintenance services for air conditioning, fuel systems,
and transmissions.
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At some of its locations, it also performs inspections and emissions testing, repairs windshields, and rotates
tires.
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The company serves vehicle fleet operators, as well as individual consumers.
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Jiffy Lube is a subsidiary of Shell Oil Company.
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Meineke Car Care Centers (formerly Meineke Discount Mufflers), headquartered in Charlotte, NC, 2014
sales of $10.8M
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900-plus franchised stores in the U.S., Canada, Mexico, Saudi Arabia, South Korea, and China.
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Meineke repairs brakes, aligns wheels, installs tires, and provides factory-scheduled maintenance, among
other services.
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From the company website, customers can learn about vehicle maintenance and safety, print coupons, and
apply for the Meineke credit card.
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Meineke is owned by Driven Brands, which also franchises the Maaco and Econo Lube 'N Tune brands,
among others.
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Midas, headquartered in Itasca, IL, 2014 sales of $67.8M
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In addition to focusing on brake and exhaust system services, the company's facilities offer routine
maintenance (oil changes, fluid replacements) and work on suspensions, shocks, and struts.
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The Midas network includes nearly 2,250 franchised and company-owned stores in 13 countries, including
almost 1,500 locations throughout the U.S. and Canada.
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In addition to these, the company has 160-plus quick-lube and maintenance shops operating under the
SpeeDee Oil Change banner in the U.S. and Mexico.
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Tire and auto repair company TBC Corporation owns Midas.
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Monro Muffler Brake, headquartered in Rochester, NY, 2014 sales of $831.43M
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The company provides a full range of brake, tire, exhaust system, suspension, and steering and alignment
services at more than 800 automotive repair shops.
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Its operations span nearly 20 states in the Northeast and Midwest and include Monro Muffler Brake &
Service, Mr. Tire, Tread Quarters, Autotire Car Care Center, and Tire Warehouse.
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Along with under-car work, the company offers air conditioning maintenance, state inspections, and
scheduled maintenance services, including fleet maintenance.
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Tire replacements and service account for more than 35% of sales.
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Monro Muffler Brake services more than 4.4MM vehicles annually.
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Pep Boys, headquartered in Philadelphia, PA, 2014 sales of $2.07B
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The company sells brand name and private label auto parts, and provides select services through some 800
stores in 35 states and Puerto Rico.
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Pep Boys stock about 25,000 car parts and accessories, including tires, and combined, operate more than
7,500 service bays for vehicle repairs, inspections, and parts installations. It also offers credit and parts
delivery to commercial customers, such as repair shops, fleet operators, schools, and municipalities.
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(Source: Hoover’s 2015)
Companies in the related automotive parts and accessories category operate physical retail establishments
that sell automobile parts, supplies, batteries, and lubricants. The top 4 retailers are:
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Advance Auto Parts, headquartered in Roanoke, VA, 2014 sales of $6.49B
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#1 provider of automotive aftermarket parts in North America.
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Serving both the do-it-yourself (DIY) and professional installer markets, AAP operates more than 3,830
stores under the Advance Auto Parts, Advance Discount Auto Parts, and Western Auto banners nationwide,
Puerto Rico, and the Virgin Islands, as well as an online site.
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Its stores carry brand-name replacement parts, batteries, maintenance items, and automotive chemicals.
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AutoZone, headquartered in Memphis, TN, 2014 sales of $9.48B
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With more than 5,300 stores in the U.S. and Puerto Rico, it's the nation's #1 auto parts chain.
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Stores sell hard parts (alternators, engines, batteries), maintenance items (oil, antifreeze), accessories (car
stereos, floor mats), and non-automotive merchandise under brand names, as well as under private labels.
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AutoZone's commercial sales program distributes parts and other products to garages, dealerships, and
other businesses.
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O’Reilly Automotive, headquartered in Springfield, MO, 2013 sales of $6.6B
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The fast-growing company sells automotive aftermarket parts (both new and remanufactured), maintenance
supplies, professional service equipment, tools, and accessories.
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Operates more than 4,160 stores in 40-plus states and online.
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Many O'Reilly Automotive stores also offer customers a range of services, including oil and battery
recycling, battery testing, paint mixing, and tool rental.
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Pep Boys (see above)
(Source: Hoover’s 2015)
The top oil change/auto service chains, based on number of locations in 2014:
1. Wal-Mart Tire & Lube Express, 2,461
2. Goodyear Tire & Service Network Outlets, 2,423
3. TBC Retail Group (includes Tire Kingdom, National Tire and Battery, Merchant's Tire and Auto
Center, Big O Tires, SpeeDee Oil Change and Tune Up, and Midas Auto Service Experts), 2,400
4. Firestone Complete Auto Care, 2,216
5. Meineke Car Care Center, 899
6. Monro Muffler Brake & Service (also includes Mr. Tire, Treadquarters Discount Tire and Autotire Car
Care), 882
7. Pep Boys, 800
8. Sears Auto Centers, 758
9. Aamco Transmissions & Total Car Care, 714
10. Quick Lane Tire & Auto Center, 695
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(Source: National Oil & Lube News, 2014)
The top fast-lube chains, according to number of locations in 2014:
1. Jiffy Lube, 1,957
2. Valvoline Instant Oil Change, 903
3. Pennzoil 10-Minute Oil Change, 750
4. Kwik Kar, 396
5. Mobile 1 Lube Express, 314
6. Valvoline Express Care, 308
7. Havoline xpress lube, 300
8. Express Oil Change & Service Center, 201
9. Grease Monkey, 200
10. Phillips 66, 186
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(Source: National Oil & Lube News, 2014)
In a fast-changing industry, many believe 2015 will be a crucial year for the automotive aftermarket. From
increasingly advanced in-vehicle technology to more savvy customers to rising costs of doing business,
there’s no shortage of obstacles facing an independent shop today.
(Source: Ratchet + Wrench, January 2015)
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According to Greg Sands, Automotive Aftermarket Entrepreneur, 2015 is a big year for the industry, in a lot
of ways -- car sales have been increasing steadily for the last four to five years now, and this is the first year
the aftermarket will start to really see those effects.
(Source: Ratchet + Wrench, January 2015)
According to a survey from RepairPal, 49% of auto repair shop owners believe that Millennials are the
generation that is least likely to routinely care for their vehicles, while Baby Boomers account for the most
car-care conscious group (62%).
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These differences may also account for the way each generation approaches understanding their automotive
ownership experience, even contributing to their research and overall understanding (or lack thereof) when
it comes to finding a qualified mechanic.
(Source: RepairPal, February 2014)
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The overwhelming majority of repair shops surveyed say they already offer online appointment scheduling
(91%), and over half provide access to services and information about their shop via mobile friendly websites
and/or apps.
(Source: RepairPal, February 2014)
Repair shops are also going green – 68% of RepairPal Certified shops repair electric and/or hybrid vehicles,
with 35% doing so for over five years.
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These shops are also looking ahead and are preparing now for the expected increase in electric and hybrid
vehicle repairs, with 67% stating that they plan on investing in training for their technicians in repairs and
maintenance for these types of vehicles.
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An additional 38% see green as the future, and are investing in new technology and tools to fix hybrid and
electric cars.
Nearly 85% of respondents from a RepairPal survey of consumers believe that a repair shop should provide
guidance to the consumer when it comes to explaining any issues with the vehicle, why the repairs are
necessary and why additional repairs may be needed. Opportunity: Include this in your clients’ commercial
messaging as a part of their standard service in their commercial messaging.
(Source: RepairPal, February 2014)
According to 80% of repair shop owners surveyed, belt repairs/replacments and oil changes are the most
often ignored scheduled maintenance issues, much to the detriment of the vehicle. Scheduled maintenance
appointments are the most important investments consumers can make to save money in the long run
(Source: RepairPal, February 2014)