Auto Windshield Repair Services
Business for Sale Industry Economics
2002 - 2020
2020 - 2026
Over the five years leading up to 2020, the Auto Windshield Repair Services market has grown. However, this expansion was erratic due to competing patterns that resulted in year-to-year swings in demand for business operators.
For example, as per capita disposable income rose, more people choose to buy newer cars. New car sales were seriously hampered during the first half of the five-year cycle by increased safety features that reduced the risk of a car accident.
Owing to rises in disposable income and consumer trust, many customers who originally put off necessary windshield repairs and replacements have now pursued the services of industry operators.
With a 0.3 percent rise in 2020, sales is projected to expand an annualized 1.4 percent to $5.5 billion over the next five years.
The number of older cars in need of maintenance due to wear and tear, the number of automobile injuries, and available per capita disposable income are all factors that influence the Car Windshield Repair Services industry.
Despite a rise in the overall age of light vehicles (i.e. cars and trucks), the average age of heavy vehicles (i.e. Higher levels of disposable income (which has boosted new car sales) and lower crime rates have stifled the industry’s development.
However, many shoppers who have been putting off auto maintenance, whether cosmetic or otherwise, have taken advantage of the improved economic outlook and increased demand for industry operators, boosting growth as new car purchases eat into total demand.
In addition, amid new cars’ superior safety features, an increase in injuries over the last five years has aided market growth. Despite a 0.3 percent decrease in 2020, sector income is forecast to grow at an annualized rate of 1.4 percent to $5.5 billion over the next five years.
Over the five years leading up to 2025, the Auto Windshield Repair Services market is expected to rise at a 0.4 percent annualized rate to $5.6 billion in sales.
Demand for automobile windshield maintenance, replacements, and tinting is influenced by the number of vehicle accidents, the number of vehicles on the road, and the rate of disposable income.
Furthermore, demand is influenced by the average age of vehicles, since the older the car, the more likely it is to need repair. With new car prices forecast to drop over the next five years and the average age of the national vehicle fleet continuing to rise, income is expected to gain.
Despite this, sales growth is expected to be hampered by declining crime and a strong influx of new vehicles purchased over the last five years, particularly given the annualized decrease of 0.6 percent in overall vehicle injuries predicted over the next five years.
The primary function of operators in this industry is to replace, restore, and stain the various glass components of automobiles.
Automobiles in this category include passenger vehicles, trucks, and buses. Companies that only provide commercial car maintenance facilities are not included in this industry.
The capital intensity of the Auto Windshield Repair Services business is low. This is comparable to other labor-intensive service sectors. Operators will spend an estimated $0.08 in capital expenditure for every dollar spent on salaries in 2020. Because it is a service business, it is primarily reliant on labor, and there are few chances for increasing mechanization.
Capital intensity has been stable during the last five years. For first start-ups, funding is required to secure storefronts, develop a fleet of service cars, and acquire equipment. Given that technicians are a crucial component of the sector, wages are estimated to account for 25.0 percent of sales in 2020 as a result of the company’s high reliance on labor.
Knives are utilized to break the adhesive bond and crowbars are utilized to detach the prior windshield from the car in this business. Furthermore, adhesives are necessary to secure the new windshield and prevent it from detaching once the vehicle is returned to service.
Furthermore, many operators are using online scheduling systems and allowing consumers to view the credentials and pictures of the technician prior to the repair. Operators have been able to become more efficient and cost-effective thanks to these new technologies.
Because of a multitude of circumstances, including decreasing crime rates and increasing usage of public transportation, the Auto Windshield Repair Services market has a moderate amount of revenue volatility.
However, as the economy improved and disposable income increased, demand for the industry’s windshield repair and replacement services became more steady. Revenue increased throughout the period as a result of these opposing tendencies, although the rate of growth fluctuated from year to year.