The numbers are in, and the future of the car wash industry shows consistent growth and great potential over the next decades…
Globally, commercial car wash locations expanded to over 150,000 with noteworthy concentrations in Germany. The key car wash industry driver remains sale of new cars, clearly reflected by spikes of activity in Iceland, Singapore, and the Ukraine according to the International Organization of Motor Vehicle Manufacturers (OICA.) That said, the top markets for new car sales by volume remain China, the US, Japan, and Germany. So, what does this mean for your car wash business?
Let’s take a look at the stats stateside. The US car wash industry currently boasts an estimated 15,000 establishments (single-location companies and units of multi-location companies) according to the International Carwash Association (ICA.) What’s more, the forecast holds exciting potential with the professional car wash market experiencing staggering growth. And it shows few signs of slowing over the coming years.
IBIS World reports that the car wash industry’s annual revenue over the five-year period from 2011 to 2016 increased at an annual rate of 3.1 percent to $10.2 billion with $1.9 billion in profit. What’s more, they project that growth in this market will continue through 2021 at an estimated 1.7 percent per year.
Reasons for Wash Industry Growth
While the report cites numerous reasons for aggressive long term growth, among the most significant factors include American spending habits, new legislation, and the overall number of vehicles on the road.
Increases in per capita disposable income represent an important aspect of this projected growth, too. Simply put, shiny cars represent a priority for Americans, especially those with more cash to burn. They invest increasing amounts of income into cleaning their vehicles… and do so on a regular basis.
Customers looking for cleaning solutions due to new legislation further augment these numbers. Local regulations prohibiting residential car washing continue to pop up across the nation making automated car washes a convenient, fast, and affordable alternative.
Finally, the overall number of vehicles on American roadways has increased and will continue to do so. With higher numbers of cars, more customers than ever before will turn to automated car washes for practical cleaning solutions.
Factors Related to Wash Success
Besides new car sales, increased legislation, and growth in consumer income, the profitability of individual firms depends on favorable locations and efficient operations. While chains have advantages in advertising and customer recognition, small firms can compete successfully by utilizing prime locations, innovative marketing strategies, and offering a consistently superior product.
Of course, this positive forecast ultimately translates into competition for your wash. So how do you differentiate your establishment and create loyal customers? By exceeding their expectations every time they choose your facility. From the best equipment on the market to an expert team of service representatives who keep your facility in tip top shape, White Water Solutions will make your wash shine above the competition. Contact us today to find out how we can drive your enterprise toward success in 2017 and beyond.