Industry Analysis & Industry Trends
The recession led to a drop in disposable income, causing many consumers to turn to auto parts retailers and fix their vehicles on their own. As the economy has improved since the recession, consumers have returned to mechanics rather than auto parts retailers, resulting in moderate industry growth. In the five years to 2020, the industry is set to recover slowly as personal disposable income levels grow, enabling consumers to visit mechanics more often, boosting industry revenue... 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 $0.07 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