Hit the road: Disposable income and consumer spending levels will benefit industry growth

Over the five years to 2018, the New Car Dealers industry in Massachusetts is expected to grow due to rising disposable income and consumer spending at the state level. When the economy improves and disposable income levels rise, consumers are more likely to release demand for new vehicles. Moreover, in the past five years, the unemployment rate in Massachusetts is expected to decline 2.7 percentage points. According to the Alliance of Automotive Manufacturers, 74.0% of individuals drive alone to work, and therefore, as people return to work and consumer spending levels trend upward, demand for new and used vehicles sold by industry operators will likely rise. Consequently, over the five years to 2018, IBISWorld expects industry revenue to grow at an annualized rate of 3.2% to $20.1...purchase to read more.

Industry Statistics & Market Size
Revenue
$20bn
Annual Growth 13-18
3.2%
Forecast Growth 18-23
Profit
Employment
23,247
Businesses
456

Industry Threats & Opportunities

  • The industry is expected to experience continued pressure from rising interest rates
  • Additional Insights for the New Car Dealers in Massachusetts Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the New Car Dealers in Massachusetts Industry are

  • Provision of superior after sales service
  • Use of high volume/low margin strategy
  • Internet presence
  • IBISWorld analysts also discuss how external factors such as Consumer spending in Massachusetts and Average age of vehicle fleet in the New Car Dealers in Massachusetts industry impact industry performance..

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    What's in this report

    What is the New Car Dealers in Massachusetts Industry?

    This industry sells new and used passenger vehicles. Vehicles include passenger cars, light trucks, sport utility vehicles (SUVs) and passenger vans. New car dealers also sell parts and provide repair services.

    Industry Products
  • New vehicles
  • Used vehicles
  • Parts and repair services
  • Finance and insurance
  • Industry Activities
  • Selling new cars
  • Selling new light trucks
  • Selling used cars
  • Selling used light trucks
  • Providing vehicle maintenance and repairs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending in Massachusetts
  • Average age of vehicle fleet
  • Per capita disposable income in Massachusetts
  • Regulation for the Automotive sector
  • Yield on 10-year Treasury note

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - New Car Dealers in Massachusetts Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Automobile Wholesaling
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing

  • Products & Services
  • New vehicles
  • Used vehicles
  • Parts and repair services
  • Finance and insurance
  • Chart: New Car Dealers in Massachusetts Industry Products and Services Segmentation

  • Major Markets
  • Prime customers
  • Super-prime customers
  • Nonprime customers
  • Subprime customers
  • Deep-subprime customers
  • Chart: Major Market Segmentation for the New Car Dealers in Massachusetts Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs New Car Dealers in Massachusetts

  • Basis of Competition
    Barriers to Entry
    Herb Chambers Cos., Balise Motor Sales Co., Group 1 Automotive Inc., Prime Motor Group,
  • Table: Herb Chambers Cos. - financial performance
  • Table: Balise Motor Sales Co. - financial performance
  • Table: Group 1 Automotive Inc. - financial performance
  • Table: Prime Motor Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the New Car Dealers in Massachusetts Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the New Car Dealers in Massachusetts Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • MA - Consumer spending in Massachusetts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big Three
  • Industry term for the three largest domestic automakers: General Motors, Ford and Chrysler.
  • Floor Plan Financing
  • A type of financing used to fund purchases of vehicles intended for sale.
  • Light-Duty Vehicle
  • A passenger vehicle, sport utility vehicle or truck weighing less than 14,000 pounds.
  • Powertrain
  • A vehicle's engine and transmission combination.
  • Surety Bond
  • A three-party agreement in which the third-party, or surety, agrees to fulfill contractual obligations.
  • Term Asset-Backed Securities Loan Facility (Talf)
  • A Federal Reserve program that issues asset-backed securities collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration.
  • What Our Customers Say

    Why buy this report?

    The New Car Dealers in Massachusetts industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on New Car Dealers in Massachusetts:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The New Car Dealers in Massachusetts market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on New Car Dealers in Massachusetts, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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