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Auto Repair Shop Business Plan Template [2021 Updated]

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III. Industry Analysis


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The Auto Repair industry has experienced steady growth over the past five years. The number of vehicles on the road expanded, along with the average age of the vehicle fleet. As a result, demand from consumers and businesses rose. Additionally, per capita disposable income levels grew during much of the period, enabling more consumers to enlist industry operators to complete the necessary repairs and maintenance for their vehicles.

Over the next five years, the industry is anticipated to continue to grow. The key industry drivers include:

– Average age of vehicle fleet: As a vehicle’s age increases, it is more likely to require serious expert repairs. Older vehicles require more frequent repairs that are often extensive and expensive. As a result, an older vehicle fleet increases demand for Auto Repair services.

– Number of motor vehicle registrations: The number of registered vehicles correlates with demand for repairs and maintenance. As the number of registered vehicles increases, demand for automotive repair and maintenance services also grows.

-Per capita disposable income: The level of per capita disposable income has mixed effects on industry demand. If disposable income levels rise too quickly, demand for industry services generally declines because consumers are able to purchase new automobiles instead of spending money on auto repair. Conversely, moderate increases in disposable income enable consumers to pay for auto repair and maintenance work that would have otherwise been unaffordable.

– Total vehicle miles: The more a vehicle is driven, the more likely it will require repair and maintenance services due to wear and tear. Consequently, cars that are used more typically require more frequent and expensive auto mechanic services.

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