Auto Glass Repair and Replacement Franchises in the US Industry Market Research Report Now Available from IBISWorld

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The Auto Glass Repair and Replacement Franchises industry hinges on a number of factors, including the total number of cars on the road (which determines the frequency of accidents) and disposable income (which determines whether consumers delay or spend on repairs and upgrades). The recession caused industry revenue to decline by encouraging consumers to try do-it-yourself repair work, but the recovery has led many to return to paying for professional services. For these reasons, industry research firm IBISWorld has added a report on the Auto Glass Repair and Replacement Franchises industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Franchise operators benefited from national advertising campaigns during the recession

The Auto Glass Repair and Replacement Franchises industry benefits from stable demand from a growing number of vehicle owners. Broken or damaged windows in cars and trucks must be repaired fairly quickly because the damaged glass may interfere with the safety of the driver and the vehicle. The costs of repairs are often covered by auto insurance providers, which helps shield the industry from fluctuations in disposable income levels. “These factors have helped the industry experience continued growth despite the steep economic recession,” says IBISWorld industry analyst Andrea Alegria. Over the five years to 2012, industry revenue is expected to grow at an average annual rate of 1.5% to $998.8 million, including projected revenue growth of 3.8% in 2012.

Operators in this industry faired considerably better than their non-franchise counterparts during past five years, as a result of greater brand recognition and marketing support. Franchisees were better able to offer price discounting during the recession to lure customers without hurting profit due to lower advertising and marketing costs. While non-franchise glass repair shops have to invest heavily in promoting their services, franchises benefit from co-op advertising on national and regional media for a comparatively smaller cost. During the five-year period, the industry continued to lure new entrants. The number of franchise owners (enterprises) is expected to grow slightly, at an average rate of 0.7% per year, to 1,620 in 2012. As the recession caused layoffs, branch closures and bankruptcies, Alegria says, “many people turned to glass repair franchising, lured by the very low overhead costs associated with operating a mobile service.” This type of service allows operators to work from home and use a vehicle to bring glass repair services to the customer. The Auto Glass Repair and Replacement Franchises industry’s largest firms, Glass Doctor, Novus Glass and SuperGlass, supervise hundreds of franchisees across the United States, but most firms in the industry operate only on a regional scale.

The industry is expected to continue growing at a modest pace in the five years to 2017, consistent with a mature industry. Although operators still stand to gain market share from their non-franchise counterparts, a highly saturated market and intense competition constrict the pace of expansion. More so, the industry faces increasing external competition from do-it-yourself (DIY) consumers who are increasingly using step-by step video instructions found online to fix windshield cracks or replace entire vehicle glass panels. Industry revenue is expected to grow in the five years to 2017. For more information, visit IBISWorld’s Auto Glass Repair and Replacement Franchises in the US industry report page.

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IBISWorld industry Report Key Topics

This industry comprises establishments that repair and replace passenger car, truck and van glass. Some operators will travel to the affected vehicle, saving the vehicle operator from having to travel to the repair and replacement shop.

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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Gavin Smith
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