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Report: Signs of More Challenges Ahead

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July 15, 2020—A new edition of Market Insights with Mike shows another phase of challenges are ahead for the auto care industry and the economy at large, according to a press release.

According to the release, while mileage is now back up to pre-pandemic levels, COVID-19 cases has risen in recent weeks after flattening between April and early June.

Cases have been growing rapidly in the West and South, particularly in California, Texas, Florida, Georgia, and Arizona. Based on the changing dynamics of disease spread in each state, several have recently paused their efforts to re-open, or even reversed course to limit activity. Arizona, California, Texas, and Florida have scaled back operations for bars, beaches, cafes, nightclubs, and gyms in an effort to mitigate disease spread and overburdening healthcare facilities.

While people are gradually venturing out of the house more, the increase in cases, particularly in Southern and Western states, is leading to mandates to restrict business activity once again, according to Mike Chung, director of market intelligence at the Auto Care Association. Further, he says in the report that these mandates are likely going to reduce vehicle activity and negatively impact the national economy.

With the possibility of increased restrictions in areas of the country with rising caseloads, Chung advises auto industry managers and owners to be prepared for another potential decrease in miles driven and corresponding consumer spend in the aftermarket.

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