Consumers will increasingly purchase value-added services, bolstering revenue growth.
New York, NY (PRWEB) February 01, 2014
During the five years to 2014, the Oil Change Services industry encountered bumps in the road following the global recession. As economic conditions deteriorated and disposable income levels decreased, consumers delayed purchasing new vehicles, which adversely affected the growth of motor vehicle registrations. “Industry success is closely tied to motor vehicle registration levels, as more new cars on the road leads to a larger customer base for industry operators,” according to IBISWorld Industry Analyst Brandon Ruiz. Nevertheless, this trend was reversed when motor vehicle registration levels rose in 2010, lifting industry revenue in the process. IBISWorld expects industry revenue to grow at an annualized rate of 0.8% to $855.5 million over the five years to 2014, boosted by an estimated 0.4% increase in 2014.
Industry profit is expected to rise as demand strengthens and operators continue to upsell value-added services. Although industry operators earn the bulk of their revenue from oil changes, other services, such as tire rotations and liquid flushes, provide additional streams of revenue. “These services yield high profit margins and are expected to grow as a share of industry revenue as disposable income continues to rebound,” says Ruiz.
Industry revenue is projected to trend higher as disposable income continues to improve and the automotive sector is revived. Consumers are expected to increasingly purchase value-added services, which will bolster revenue growth. Additionally, the number of motor vehicle registrations is expected to rise, which will increase the number of vehicles that require routine maintenance work. Despite these positive trends, potential threats exist that could hamper growth prospects. Rising gas prices, in addition to stricter fuel-economy mandates, are leading automakers to manufacture vehicles powered by sources other than internal combustion engines. These vehicles would require maintenance work currently outside the scope of services offered by this industry, which negatively impacts industry demand.
For more information, visit IBISWorld’s Oil Change Services in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.
IBISWorld industry Report Key Topics
Operators in this industry change motor oil, lubricate automotive vehicle chassis and provide other automotive repair and maintenance services, such as tire rotations and liquid flushes. Unlike operators in the Auto Mechanics industry (IBISWorld report 81111CA), companies in this industry do not provide mechanical or electrical repair and maintenance. Oil change service operators are also not involved in body, paint, interior or glass repair, nor do they offer car wash services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.