Increasing employment, disposable income and consumer spending will bolster demand for industry services.
New York, NY (PRWEB) August 19, 2014
In the five years to 2014, operators in the Car Wash and Auto Detailing industry have rebounded from recessionary conditions. Rising Canadian per capita disposable income has fuelled demand for discretionary consumer services like car washes; consequently, industry revenue is expected to increase. According to IBISWorld Industry Analyst Stephen Morea, “An increase in demand from other vital downstream markets, such as new and used car dealers, has also boosted revenue for industry operators, as automotive dealers commonly outsource industry operators to wash, detail and perform minor body work on cars before they are brought to the market.” Furthermore, an increase in the total number of vehicles in Canada has expanded the industry's potential customer base.
Despite pressure from rising water and regulatory costs, profit margins in the Car Wash and Auto Detailing industry are estimated to increase slightly from lows in 2010. “Much of this growth is the result of higher demand, as industry operators faced rising labour and capital costs,” says Morea. In response to federal, provincial and municipal laws regarding water disposal and rising fees for utilities such as water, car wash operators have increasingly installed water conservation and reclamation equipment during the past five years. In the near term, these capital investments raised operating costs for car wash and auto detailing companies. However, during the next five years, industry operators are expected to benefit from these cost-saving implementations.
Additionally, in the five years to 2019, increasing employment, disposable income and consumer spending will bolster industry revenue. An expanding Canadian economy will put more vehicles on the road, while consumers will have more cash on hand to spend on discretionary services such as car washes.
For more information, visit IBISWorld’s Car Wash and Auto Detailing in Canada industry report page.
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IBISWorld industry Report Key Topics
The Car Wash and Auto Detailing industry cleans, washes and waxes automotive vehicles, such as passenger cars, trucks, vans and trailers. It also includes self-service car wash establishments.
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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