Parking Lots and Garages in Canada Industry Market Research Report From IBISWorld Has Been Updated

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The Parking Lots and Garages industry experienced growth over the past five years; going forward, revenue will rise slowly, buoyed by rising disposable income and car purchases. For these reasons, industry research firm IBISWorld has updated a report on the Parking Lots and Garages industry in its growing industry report collection.

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Rising disposable income and car purchases will contribute to industry growth.

The Parking Lots and Garages industry experienced growth over the past five years. Industry operators provide parking services to all consumers and businesses, which results in stable demand; however, due to the recession, unemployment spiked in 2009. According to IBISWorld Industry Analyst David Yang, “High unemployment lowered the number of commuters on the road, which lowered demand for parking spaces.” As such, industry revenue slightly declined 1.3% over the year. Since then, revenue has steadily picked up as the economy recovered. In particular, international travel activity strongly expanded over the past five years, which bolstered demand for parking spaces at airports. As a result, IBISWorld anticipates industry revenue to increase at an annualized rate of 1.1% to $717.9 million in the five years to 2013.

Airports have been a major market for industry operators. In the five years to 2013, the number of international trips taken by Canadian residents is anticipated to increase an average of 5.1% per year, driving demand for airport parking. Steady growth in the number of cars on the road also bolstered demand for parking. However, revenue is expected to grow only 0.7% in 2013. Revenue growth is slowing due to a dip in disposable income growth, which limits consumer attendance at sports venues, music events and restaurants, all of which require parking services.

The industry has experienced advances in automation and online technology over the past five years. Parking facilities are incorporating automated entry systems, online registration, online fee payment and other technologies. “Although parking technology raises capital costs, industry operators can also experience longer term savings on labour costs,” says Yang. Overall, due to advances in automation, labour costs are expected to fall from 21.3% of revenue in 2008 to 19.4% in 2013. As such, industry profit margins are expected to increase over the period.

The industry is projected to slowly expand in the coming years, buoyed by rising disposable income and car purchases. Due to pent up demand in recent years, the number of vehicle registrations is anticipated to grow strongly, leading to greater demand for parking spaces. However, as people return to work, they will have less time for international travel, which will slightly dampen demand for airport parking. As a result, IBISWorld forecasts that industry revenue will increase in the five years to 2018.

For more information, visit IBISWorld’s Parking Lots and Garages in Canada industry report page.

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IBISWorld industry Report Key Topics

The Parking Lots and Garages industry provides parking and valet service for motor vehicles on an hourly, daily or monthly basis. Industry firms operate via management contracts, lease agreements or property ownership.

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 and Canadian 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
IBISWorld Inc.
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