Growth will stabilize, as consumer interest rises and new paint technologies emerge
Los Angeles, CA (PRWEB) March 21, 2012
The Auto Paint Customization Shops industry's performance has been streaky during the past five years. According to IBISWorld, industry revenue is expected to fall 0.5% annually on average over the five years to 2012, but it is expected to grow 2.5% in 2012 to $665.3 million. The recession has had lingering effects on the industry, with consumers holding off non-essential vehicle alterations and customizations, such as aftermarket paint jobs.
The Auto Paint Customization Shops industry derives its revenue from drivers that pay auto paint customization shops for customized paint jobs for their vehicles. Nearly all of the industry's services are considered discretionary luxuries (since paint is an aesthetic non-operational feature of a vehicle); as such, industry demand and revenue are subject to consumer and discretionary spending levels. In 2009, consumer spending declined and discretionary purchases like automotive alterations were put on the chopping block. According to IBISWorld industry analyst Antonio Danova, “consumers who continued to invest in auto paint customization scaled back on the amount they spent on their projects and opted for lower-cost services and projects.” From 2010 to 2012, consumer spending increased, resulting in a steady increase in spending on car customization and rising revenue for auto paint customization shops.
Despite recessionary declines, a number of industry-specific trends have bolstered demand for auto paint customization shops over the long term. Danova says, “one of the biggest driving forces has been growing pop-culture interest in customized vehicles.” Industry demand has also been encouraged by several new styles of automobile body paint, including chrome paints, paints with ultraviolet light-cured finishes and paints that incorporate nanotechnology. Water-based paints are the future of automotive paint technology and are expected to boost demand for paint customization, given their ease of use and lower potential cost once the technology is widely adopted. All of these factors will bode well for the Auto Paint Customization Shops industry. Firms will likely experience growing demand for their services over the next five years, prompted by an expanding economy and favorable trends.
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This industry provides customized paint jobs and other exterior graphics for automobiles. Businesses in this industry customize cars to make a style statement for the consumer, making the car look unique and unlike a factory-finished car. Freight truck and trailer customization services are also included in this industry. This industry does not include original equipment manufacturer (OEM) repair and paint work.
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