US Auto Repair and Maintenance Industry Explored in New Market Report

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The US auto­mo­tive repair and main­te­nance ser­vices indus­try is expect­ed to grow at a low rate over the next two years. More con­sumers replac­ing their old cars after post­pon­ing new car pur­chas­es dur­ing the reces­sion may con­tribute to slow indus­try growth in the near term, accord­ing to Research and Mar­kets “Auto­mo­tive Repair & Main­te­nance Ser­vices” report.

The indus­try includes about 160,000 estab­lish­ments with com­bined annu­al rev­enue of about $80 bil­lion. Major com­pa­nies include Bridge­stone, Jiffy Lube, Meineke (a divi­sion of Dri­ven Brands), Midas, Mon­ro Muf­fler Brake, and Safe­lite Group. 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 indus­try is high­ly frag­ment­ed: the 50 largest com­pa­nies gen­er­ate less than 10 per­cent of rev­enue, accord­ing to the mar­ket report. Com­pe­ti­tion includes oth­er venues that pro­vide auto­mo­tive ser­vices, includ­ing some gas sta­tions, car deal­er­ships, and branch­es of chain stores, like Sears and Kmart.

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