New York, NY (PRWEB) April 24, 2014
The Auto Mechanics industry has been coasting over the past five years, providing widely accepted and increasingly diverse automotive repair services to individual and business customers. According to IBISWorld Industry Analyst Nick Petrillo, “Revenue growth is determined by demand from consumers, businesses and government agencies, all of which have increasingly demanded industry services due to higher disposable income, used vehicle sales and corporate profit since 2009.” During the five years to 2014, industry revenue has grown 2.5% per year on average to $7.7 billion. Continued evidence of stable macroeconomic growth across Canada bodes well for auto mechanics, with industry revenue estimated to grow an additional 1.4% during 2014.
Over the past five years, profit margins have been relatively stable, experiencing their largest decline in 2012. Internal competition exists among operators on the basis of price, quality and reputation. “Industry participants also face external competition from other auto repairers, including new car dealerships and individuals who prefer to complete basic repairs at home,” says Petrillo.
Industry revenue is forecast to continue steadily trending upward over the next five years. Per capita disposable income is expected to continue slowly rising, resulting in stronger downstream demand for automotive repairs from individual consumers. From 2014 to 2019, revenue for the Auto Mechanics industry is forecast to climb. Auto manufacturers are constantly changing the way they make cars to meet various fuel-efficiency targets set by the Canadian government, and these changes often lead to additional modifications in industry services. In 2012, Canada adopted the Corporate Average Fuel Economy standards, or minimum fuel-economy vehicle standards. As such, industry players that have highly skilled employees capable of modifying engine components to comply with new federal standards will hold a substantial competitive advantage during the next five years. Over the period, the number of mechanics is forecast to increase.
For more information, visit IBISWorld’s Auto Mechanics 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 the Auto Mechanics industry perform mechanical and electrical repairs and maintenance for automotive vehicles, including passenger cars, trucks, vans and trailers. Auto mechanics often work independently or for small auto repair shops, garages and car care centres.
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.