It’s a good time to be a part of the automotive industry. While all industries — including the automotive industry — took a hit in the recession of 2008, we have seen great growth along with the rest of the economy. In fact, automotive sales have increased over the past five years, from 2009 to 2014.
This growth is being fueled by a stronger economy overall and increased consumer confidence in the economy. That means consumers are more willing to make big purchases, like a new car and automotive aftermarket accessories.
But there is another industry trend at play in the recent years.
While many people are buying cars, just as many are holding on to their cars for longer. On average, they keep cars for 63.9 months, which is 4.5 months longer than in previous years. This trend has led to an increase in consumer demand for auto repairs, such as transmission repair and general repairs.
The growth in consumer demand has fueled increased profit margins for auto repair business since 2009. Plus, the future looks just as bright as the past few years for the automotive industry. For example, transmission repairs are forecasted to continue growing in consumer demand in the next five years. But it won’t just grow in demand, the demand will rise significantly as many of those consumers with their older cars are reaching the point of needing repairs.
Of course, general repairs are growing and will continue to grow as a result of this trend, as well. We expect to see auto repair business and automotive accessories thrive in the foreseeable future as consumers continue buying cars which need automotive aftermarket accessories and as other consumers hold on to their cars and need auto repairs to keep them in the best shape.
Just as we said earlier, it’s a good time to be a part of the automotive industry!