III. Industry Analysis
The Car Wash industry has seen strong growth over the past five years. The drop in oil prices has encouraged more consumers to hit the road, as lower gas prices translated to greater use of cars. The broader economic landscape boded well for industry growth, with not only more vehicles joining the road but also individuals driving personal vehicles more frequently.
The industry saw profit increases from companies diversifying their offerings to build a stronger customer base, implementing value-added services such as interior cleaning, waxing and rim shining, in addition to their more basic packages. Moreover, companies revamped waiting rooms to offer Wi-Fi, TV and coffee lounges to generate repeat customers.
Revenue growth will be bolstered by rising per capita disposable income, which will boost consumers’ propensity to spend on discretionary services, such as car washes. Furthermore, environmental awareness of water usage will boost demand for professional car washing because professional services typically use less than one-third of the water used by residential car washing.