BIRMINGHAM, Ala. — In Professional Carwashing & Detailing’s upcoming August feature, “Carwash market update,” Editorial Director Rich DiPaolo writes about how to ride the momentum of a growing economy and carwash industry.
“In 2015, news about the U.S. unemployment rate, carwash sales and a growing U.S. economy, including increased momentum in retail sales and the housing market, continue in the right direction,” says DiPaolo. “An updated jobs report earlier this summer noted that the unemployment rate in this country fell to 5.3 percent, accounting for a seven-year low, according to the U.S. Bureau of Labor Statistics.”
For the carwash industry, other promising statistics should be considered, DiPaolo continues, and car sales and consumer spending trends are two areas of particular interest. From 1993 to 2015 total U.S. vehicle sales averaged $15.31 million, according to Trading Economics, using data reported by Autodata Corporation; and total sales bottomed out to $9.05 million in February 2009 during the height of the Great Recession. However, total vehicle sales were at $17.16 million this past June, and Trading Economics reported in June that U.S. consumer sediment rose more than expected and was at a five-month high.
In addition to these promising stats, DiPaolo also notes, “Industry research shows a significant number of new investor carwash owners now entering the market. According to the ICA, 37 percent of carwash owners have owned their business for less than five years. Industry professionals involved in training … believe this is a conservative estimate.”
In the article industry experts, such as Robert Andre, vice president of training and education for SONNY’S The CarWash Factory, and Steve Gaudreau, president of Brink Results LLC, offer a few of the following common reasons for why our industry is attractive to new investors:
- Potentially high profit margins of a successful carwash
- It’s still a fragmented industry, so it is possible to build a strong regional brand
- Availability of capital for startup and lending
- It’s largely a cash business
- Unlike other industries, such as food service, inventory does not commonly spoil
- No receivables, payment is immediate.
For more information on the state of our industry and rising trends, stay tuned for the August Issue.
While you wait for the August issue, check out our Digital Archives for past issues of our publication here.