Industry Analysis & Industry Trends
The Gas Stations industry has experienced a moderate amount of volatility over the past five years. As more Americans returned to work, total vehicle miles increased, bolstering purchases of gasoline. Additionally, as per capita disposable income continued to improve, some consumers traded up to premium fuel, which is priced higher than lower-octane fuel. However, significant drops in the world price of crude oil resulted in substantial revenue loss in the latter half of the period. Looking forward, oil prices are expected to rise and flow through to retail prices, driving up revenue, and consumers are anticipated to absorb price increases as they return to the road. Nevertheless, volume sales of gasoline are forecast to decline, threatening industry growth... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Gas Stations industry is in the declining stage of its life cycle. Over the 10 years to 2020, industry value added (IVA), which measures an industry's contribution to the economy, is forecast to decrease at an average annual rate of 4.5%, which is below the 2.5% annualized rate that GDP is also projected to grow during the same period. Along with the industry's IVA suggesting that it is in the declining stage of its life cycle, other characteristics of the industry also point to its decline, such as the declining number of industry establishments and changing consumer preferences.
A major factor driving down industry establishments is increasing market penetration from retail establishments (e.g... purchase to read more