As the economy recovers, rising incomes will boost consumer demand for parking services.
Los Angeles, CA (PRWEB) September 27, 2013
The Parking Lots and Garages industry was not immune to the recession. As disposable income dropped, consumers reduced their spending on air travel, shopping outings, sporting events and concerts; the large parking facilities at these venues suffered. Also, escalating fuel costs forced some consumers to use alternate modes of transportation, such as mass transit, which reduced their parking needs. “In addition, rising unemployment cut into the number of people commuting to work,” according to IBISWorld Industry Analyst Hayden Shipp. However, the industry's recession-driven revenue losses were relatively small and reversed in 2011.
Increases in parking rates during the five years to 2013 and recent improvements in consumers' discretionary spending contributed to the industry's turnaround. Also, sectors that were somewhat resistant to the recession, such as hospitals, universities and municipalities, increasingly used outsourced parking services which benefited industry revenue. As such, revenue has grown at an annualized rate of 0.8% in the five years to 2013 despite losses early in the period. In 2013, industry revenue is expected to grow 1.7% to $9.6 billion.
During the five years to 2013, the largest providers of parking services have engaged in mergers and acquisitions. In 2012, the industry's largest companies merged: Standard Parking Corporation purchased Central Parking Corporation. Laz Parking also made a series of acquisitions during this period with the financial backing of its co-owner Vinci. The company extended its reach from the East Coast to most major metropolitan areas of the United States.
In the five years to 2018, the Parking Lots and Garages industry’s growth is expected to accelerate. This growth reflects the increased demand for parking that will stem from a growing economy. “As employment increases and boosts disposable incomes, higher consumer spending at airports and entertainment venues is expected to raise demand for parking services,” says Shipp. However, decreased reliance on personal automobiles, due to a better public transportation and bicycle infrastructure, poses a potential threat for the industry.
For more information, visit IBISWorld’s Parking Lots & Garages in the US industry report page.
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IBISWorld industry Report Key Topics
The Parking Lots & Garages Industry provides parking and valet service on an hourly, daily or monthly basis. The industry primarily operates via management contracts, lease agreements or property ownership.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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