Today’s consumers are holding onto their vehicles longer, which is increasing the demand for aftermarket parts and services. In fact the typical car on the road, according to a recently released IHS Markit survey, is a record-high 11.5 years old. Even though many vehicles on the road are older, consumers are still buying new vehicles as well. In 2015, US car sales were at a record high when 17.5 million cars and light trucks were sold. This was a 5.7% increase over the prior year.
Some of the key trends and statistics related to the auto care segment of the automotive aftermarket include:
• The average age of the U.S. vehicle fleet has increased 17% in the last ten years and older car owners are twice as likely to expect to spend more than $1,000 on maintenance and repairs
• The average length of vehicle ownership for new and used vehicles has increased 60% in the last ten years
• 75% of aftermarket auto repair is performed by independent auto repair shops, while 25% of the business lives with dealerships.
• Newer car owners are more likely to buy appearance products
• There’s a trend toward large franchise auto repair businesses, which provides a good opportunity for profitable businesses on the service/seller-side
• The aftermarket world is going online, and the marketplace is changing. Parts are being sold online, service is being sold online
*Sources: USA Today, 2015 & IHS Automotive Survey, 2017
These trends and statistics point out the massive potential and longevity of the automotive aftermarket and the opportunity provided to franchises and businesses that serve this multi-billion industry. AWRS has focused the franchise business in an niche area of the automotive aftermarket that is largely underserved and growing rapidly. Due to the lack of national, reputable and professional companies who can offer wheel repair and replacement services, the AWRS business was born and continues to flourish as the global industry leader.
When you couple aftermarket trends as noted above with things like erratic weather conditions, poor road conditions, road construction, pot holes, accidents, narrow parking spaces, curbing, speedbumps and just bad driving in general you can start to understand why wheel repair and replacement is necessary and in continued demand. Now consider the number of people driving vehicles with low profile tires and who want wheel personalization and customization, and this only further increases demand for what AWRS provides its customers.
AWRS has grown considerably since its inception in 2000 and has become the global leader in full-service wheel repair and replacement. Today, AWRS has over 140 locations serving 18 countries in a niche segment of the global automotive aftermarket industry. AWRS is the only company in the world that offers both mobile and remanufacturing of wheels that are cosmetically or structurally damaged. Simply put we are the McDonald’s, FedEx, Starbucks and Home Depot of our industry.
This is a great position to be in and you could enjoy the benefits of it too!