Automotive Repair & Maintenance Services

Automotive Repair & Maintenance Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide repair and maintenance services for passenger cars and light trucks. Major US companies include Firestone Complete Auto Care (a unit of Bridgestone), Jiffy Lube, Meineke, Midas International, Monro Auto Service and Tire Centers, and Safelite Group.

COMPETITIVE LANDSCAPE

Demand depends on miles driven and the number of cars on the road. The increased complexity of vehicles, which makes it more difficult for vehicle owners to perform do-it-yourself repairs, is also driving demand. The profitability of individual companies depends on convenient location and good marketing. Large companies can maximize use of expensive diagnostic equipment and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by providing superior customer service or offering specialized services. The US industry is highly fragmented: the 50 largest companies generate less than 10% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include maintenance and repair services for automobiles and light-trucks (about 80% of industry revenue), followed by maintenance and repair services for heavy trucks and buses (10%). Other services include washing and cleaning services for automobiles (less than 10%).