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Automotive Repair Industry
- Market History
- With the U.S. automotive industry birth at the turn of the 19th century consumers began to peak and interest in the new wave of transportation. With releasing the Ford Model T 1915, Ford was selling half a million vehicles a year and The Great War gave great impetus to motorized vehicle use and, after the war, thousands of war surplus trucks were dumped onto the market in 1919 and 1920.Thus the automotive repair industry was born, a surplus in the market and manufactures overwhelmed with production and repair a need had to be met to further service those who could not reach the manufacturer. With the crash of the stock market in 1929 the Great Depression put a strain on every business repairs still needed to be done, Unions were formed in order to give workers fair compensation for repairs and time, customers would be fairly charged and businesses overall could stay afloat.
- This market has withstood the a great deal from its conception unto present day, these services stand to be a must in any community across the nation. The US automotive repair and maintenance services industry includes about 160,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of over $80 billion dollars. The industry is highly fragmented: the 50 largest companies generate less than 10 percent of revenue With a spread of this nature no one source of competition holds complete power. There is a great chance for startup with pieces of the market to be shared.
- Since not even the largest competitors hold even 10 percent of overall market shares the market is pretty dispersed. New competitors allowed to come in and grow as seen fit so long as they have comparable assets within the business and clientele in order to keep them afloat. The major competitors are established franchises such as AAMCO, Meineke , and National Tire and Battery. This brands have already been established so demand some customer loyalty.
- Industry Growth Effects
- Growth of the industry has been slow at a study 1.7 percent for the past 3 years as the economy goes up and down people sometime see less need to take the repair to professionals but attempt self-fixes for simple projects. In common cases mechanics are still the middle man before the dealerships or manufactures, with prices a lot cheaper and the quality the same mechanics are still a reliable source for the everyday consumer repair.
- Marketing strategy
- I plan to utilize technology as a key part of marketing. With apps or a phone call I would like to be able to service the customer like no other garage allowing me to provide maintenance at the point of need. Everything is fast pace and people are busy with life to save time and towing expense mobile response will help the customer get back on the road quicker
- A key compenent to marketing and revenue would be the restoration and sells. Since the business is already centered around the heart or engine of the car if some efforts went toward fixing older cars to resell to the car lover or a first time buyer more revenue could be gained from this as well.
- Another great pan would be to reach the communities by way of grants or some sort of government assistance in order to help consumer less fortunate that use their vehicles but can’t afford the repair this would build a good community bond and relationship
- Auto Mechanics in the US Market Research
- IAMAW Northwest District 250
- AAMCO Transmissions
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