Business for Sale Industry Economics
2002 - 2021
2021 - 2027
Operators in the Auto Mechanics industry work on a range of vehicles, including cars, pickups, buses, and trailers, doing mechanical and electrical repairs and maintenance. The sector grew steadily over the five years leading up to 2021.
The number of vehicles on the road grew, and the average age of the fleet grew as well. As a result, customer and company demand increased.
Furthermore, disposable income levels increased for most of the time, allowing more customers to forego do-it-yourself repairs in favor of hiring industry professionals to handle their vehicle’s repairs and maintenance.
Owing to major sales losses witnessed in 2020 after the COVID-19 (coronavirus) pandemic, market revenue is projected to fall an annualized 0.7 percent to $65.3 billion over the five years to 2021.
Operators in the Auto Mechanics industry perform mechanical and electrical repairs and servicing on a variety of vehicles, including cars, pickup trucks, vans, and trailers. This business excludes auto body shops, car washes, and tire stores.
Operators include self-employed mechanics (who make up 67.5 percent of all businesses), auto repair shops, garages, and car-care centers. Over the five years leading up to 2021, the sector expanded rapidly. The number of vehicles on the road increased, as did the fleet’s average age. As a result, demand from customers and businesses grew. Therefore, customer and company demand increased.
Furthermore, per capita disposable income rose for the majority of the time, encouraging more consumers to forego do-it-yourself (DIY) fixes in lieu of enlisting industry operators to complete their vehicle’s needed repairs and maintenance.
However, industry revenue is expected to decline an annualized 0.7 percent to $65.3 billion over the five years to 2021 due to significant demand declines in 2020 due to the coronavirus pandemic.
In 2020, market revenues are forecast to fall by 11.3 percent, significantly slowing the industry’s compounded growth and partially skewing operating conditions.
For example, when the unemployment rate declines and consumers return to work, many are expected to release pent-up demand for business services that they have been putting off due to financial difficulties caused by the pandemic over the next five years.
Furthermore, overall car miles are expected to increase over the next five years as consumers extend their leisure travel.
However, as the economy grows, new car sales are projected to rise, temporarily stifling significant revenue growth for the industry as customers opt to purchase new cars rather than replacing old ones.
As a result, while revenue is expected to rise by an annualized 1.3 percent to $69.6 billion in the five years leading up to 2026, it is not expected to reach pre-pandemic levels over the outlook period.
The Auto Mechanics industry provides mechanical and electrical repair and maintenance for cars, trucks, buses, and trailers.
Operators include self-employed mechanics, car repair shops, garages, and automotive maintenance centres.
This sector excludes car dealerships, auto parts retailers, and gas stations that have industry services.
Industry services do not provide auto bodywork, vehicle washes, oil changes, or air conditioning repairs.