Purchased Service Increased $14B in Last Six Years
Feb. 7, 2018—According to the latest Lang Aftermarket iReport, purchased service (charges for technicians to repair vehicles) increased $13.7 billion in the car and light truck auto repair aftermarket during the past five years (2012 to 2017).
As a result, purchased service generated 53 percent of total car and light truck aftermarket product expansion.
“As purchased service increased at an average annual 4.2 percent pace during the past five years, major shifts occurred in the purchased service volume of product repair outlet groups,” said Jim Lang.
The study listed several other major takeaways:
Purchased service (charges for technicians to repair vehicles) averaged 45 percent greater annual growth than product sales in the car and light truck aftermarket over the past five years (2012 to 2017).
Repair specialists achieved the greatest increase in purchased service sales and recorded the second highest annual rate of purchased service growth.They were up $4.4 billion, and averaged the second highest annual rate of growth at 6.1 percent.
Service stations and garages contributed 23 percent of purchased service expansion between 2012 and 2017, second in overall strength. Tire stores were fourth in purchased service growth share, followed by discount stores and mass merchandisers with bays.
Vehicle dealers achieved the third greatest car and light truck 2017 purchased service volume but ranked sixth in their annual rate of growth.