The cause for a booming market in repairs and parts
There are currently about 250 million vehicles on U.S. roads, a record number. The average vehicle climbs to about 11.5-years-old, which is also a record number.
According to data from Bloomberg, this is due to lingering effects of the recession. Additionally, low gas prices and increased employment results in drivers putting more miles on their cars, creating a booming market for oil and replacement tires.
Michael Montani, an analyst at Evercore ISI, said this trend may cause auto part consumption to increase as much as 4 percent for the next four years. “With so many old cars on the road,” he said, “there will be a huge surge for repairs, most of which need immediate parts.”
The auto repair industry is also in a good position because it is not being disrupted by places like Amazon. When a consumer needs a part, they can’t wait for tomorrow’s delivery. Customers need it today. Keep in mind, there is no better time than now to reevaluate and update your fixed ops department to take back some of the market share in this highly profitable and growing sector!
A recent study from Columbia University found that are faced with more than 70 decisions …