If you think you’ve been seeing more carwashes around than in the past, you’re probably right. The carwash business is booming and so is the competition.
“The professional carwash market is currently experiencing staggering growth, which is fueled by consumers with more disposable income and investors who are interested in our industry’s minimal labor, high volume and quick return on investment business models,” Editorial Director/Editor in Chief Rich DiPaolo wrote in the Professional Carwashing & Detailing November feature, “Strength with numbers.”
DiPaolo begins the article by laying out the facts about carwash industry growth.
“According to IBISWorld Industry Report 8119a: Car Wash & Auto Detailing in the US, our industry’s annual revenue over a five-year period through 2016 is anticipated to increase at an annualized rate of 3.1 percent to $10.2 billion with $1.9 billion in profit. And, according to the report, annual growth in this market will continue through 2021 at an estimated 1.7 percent.
“While there are many contributing factors to this growth, added the report, disposable income is expected to boost the industry’s revenue mark by 2.3 percent this year alone,” DiPaolo said.
According to the IBISWorld report, “Moreover, average industry profit is expected to rise from 16 percent of revenue in 2011 to 19.1 percent in 2016. In line with rising profit margins, the number of carwashing companies is expected to increase at an annualized rate of 0.9 percent to 63,150 operators over the five years to 2016.”
DiPaolo then goes on to discuss the impact these rising numbers have on individual carwash businesses and how owners and operators need to embrace change in the face of so much new competition.
The PC&D team has created the infographic below to help illustrate the statistics from the IBISWorld report for projected carwash industry growth.