Industry Analysis & Industry Trends
The Auto Mechanics industry has grown steadily over the five years to 2015. Individuals and businesses have increased demand for industry services, as rising per capita disposable income and corporate profit encourages consumers to opt for auto mechanic services over do-it-yourself repair. In the coming years, disposable income levels are expected to continue to grow, encouraging some consumers to spend more on the maintenance and repair of their vehicles. However, as consumers become more comfortable financially, an increasing numbers of car owners are expected to scrap older vehicles in need of expensive repairs, and instead opting to buy new replacement vehicles... purchase to read more
Industry Report - Industry Investment Chapter
The Auto Mechanics industry has a relatively low level of capital intensity, with the average industry operator spending an estimated $0.06 on capital for every $1.00 spent on wages. Due to the labor intensive nature of industry activities, industry expenses are primarily composed of wages and other labor-associated costs. Repair shops heavily rely on skilled labor for diagnosing and repairing automobiles. In addition, industry employees are increasingly required to have a thorough understanding of technology given that more and more vehicles are being built with complex electronic systems and computers. A shortage of sufficiently trained and interested workers has led wage costs to grow over the past five years.
Conversely, industry capital costs are relatively low... purchase to read more