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.