Auto Service Industry Continues Downward Revenue Trend
May 6, 2013—Annual revenue for the automotive maintenance and repair industry has steadily declined over the past five years, and a further dip in 2013 is expected, according to an IBISWorld industry report that focused on sales numbers from 35,000 franchise facilities.
In the last five years, overall industry revenue has declined at an annual rate of 2 percent to $30.3 billion.
This decline was largely due to declines in the overall economy, which caused a decline in disposable income and corporate profit, effectively stifling the use of vehicles and the need to repair them.
Declines in disposable income pushed many consumers to opt for self-repairs through purchases from auto-parts retailers and use public transportation, carpooling and cycling to get to work.
According to the report, these factors are expected to cause automotive maintenance and repair franchises to decline an additional 2.3 percent in 2013.
Over the next five years, industry revenue is expected to pick up again along with the economy and the economic factors that stifled industry growth.