Oil Change Services in the US Industry Market Research Report Now Available from IBISWorld

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After hitting a road block over the past five years, IBISWorld expects the Oil Change Services industry to make a U-turn. Demand is expected to return in line with growth in disposable incomes and the number of cars on the road. Firms will look to adapt their services to new vehicles and build strong customer relationships in order to succeed. However, a modest increase in new car sales will cause the average age of the vehicle fleet to drop, hampering demand for industry services. For these reasons, industry research firm IBISWorld has added a report on the Oil Change Services industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Rising disposable incomes will prompt consumers to make preventative repairs, driving demand

The Oil Change Services industry has stumbled over the past five years. Industry revenue is anticipated to decline at an estimated annualized rate of 1.8% to $6.3 billion over the five years to 2012. Firms provide oil changes and other automotive maintenance, including tire rotations, air filter changes and transmission flushes. “The revenue decline over the five-year period reflects the fall in demand the industry experienced during the recession,” says IBISWorld industry analyst Radia Amari. “The recession led to a significant drop in per capita disposable income, causing consumers to delay vehicle maintenance to save money.” Fewer cars were on the road as unemployment surged and less people commuted to work. However, there were some glimmers of hope. The recession also caused pent-up demand, as vehicle maintenance can be delayed, but not indefinitely. As such, industry revenue is expected to grow 1.2% in 2012 as consumers bring cars in for necessary maintenance that was put off.

In response to declines, industry operators have added other services besides oil changes to their service mix to increase revenue amid dwindling demand. A higher volume of cars coming in for service is now up-sold on other services to generate more revenue, as the industry responds to a decline in car volumes and a shift in consumer demand toward preventive repairs. Despite the industry's shift in strategy, external competitors still pose a threat as major retailers and warehouse clubs undercut traditional operators on price and speed of service. “To compete effectively,” adds Amari, “the Oil Change Services industry must focus on quality customer service to retain customers and to keep their businesses afloat.” The industry is characterized by a large number of small-scale operators, with the majority of companies operating on a local basis and owning just one establishment. Royal Dutch Shell PLC is the only industry major player.

The next five years are forecast to be brighter for the industry. Disposable income is set to rise and, in turn, consumers will visit industry firms at accelerating rates to attend to their vehicles. However, external competition will remain a concern for the industry as larger entities continue to pressure firms on price. Nonetheless, operators that build solid customer relationships have a chance at success. Over the five years to 2017, revenue is expected to grow. For more information, visit IBISWorld’s Oil Change Services in the US industry report page.

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IBISWorld industry Report Key Topics

Industry operators change motor oil, lubricate the chassis of automotive vehicles and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. Unlike auto mechanics, companies in this industry do not provide mechanical and electrical repair and maintenance. Industry operators are also not involved in body, paint, interior and glass repair. Companies that provide car wash services are also not included.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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