Car Washes
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 18,520 car washes in the US provide washing, waxing, detailing, hand washing, and self-service washing of cars, trucks, vans, and trailers. Companies may also perform scheduled and preventative maintenance or body repair. Operations generally involve three types of car washes: conveyor car washes, in-bay automatic car washes, and self-service car washes. The industry includes regional chains, franchises, and independent operators.
Capital Investment
Automated car washes are capital-intensive and require a sizable investment in equipment.
Express Washes Explode
The number of express wash facilities has grown dramatically, driven by vehicle owners looking for faster, less expensive options and car wash owners looking for more economical alternatives.
Industry size & Structure
The average car wash operates out of a single location, employs fewer than 10 workers, and generates about $1 million annually.
- The car wash industry consists of about 15,640 firms that operate 18,520 establishments, employ 182,000 workers, and generate $16.2 billion annually.
- The industry is extremely fragmented; the top 50 companies account for 20% of industry revenue.
- Large companies include Mister Car Wash, Take 5 Car Wash, ZIPS Car Wash, and Autobell Car Wash.
- The industry includes regional chains, franchises, and independent operators.
Industry Forecast
Car Washes Industry Growth
Recent Developments
Nov 20, 2024 - Sentiment Falls, Employment Up
- According to a Q3 2024 Pulse Report from the International Car Wash Association reported by Carwash.com, retailer positivity about current business conditions declined to 46% in Q3 from 64% in Q2. The report revealed that retailer and supplier year-end growth projections have fallen from last quarter and have reached their lowest level since 2020. On a positive note, over three-quarters of monthly unlimited car wash subscription customers surveyed say they are highly satisfied. Looking at industry data points, employment increased in September 2024 while labor costs fell. Employment by car washes grew almost 5.7% in September 2024 compared to a year ago, according to the Bureau of Labor Statistics. Average wages for nonsupervisory employees at car washes fell 1.4% in September 2024 year over year, reaching $18.12 per hour.
- A new comprehensive survey on customer acquisition by Carwash.com found that word-of-mouth (64%) was the most popular and effective method of attracting new customers followed by social media marketing (47%) and direct marketing (37%). The survey, sponsored by DRN, noted that the dependence on customer referrals makes it important for car washes to maintain a high quality service. Other strategies used by car washes include billboards and other public-facing channels (21%), traditional media such as TV or radio (16%), no marketing or acquisition efforts (8%), and partnering with sports teams/events (7%). When asked about challenges, survey participants cited economic factors (51%) and high competition (44%) as primary obstacles to acquiring new customers. Efforts cited as supporting customer acquisitions include improved marketing tools (47%), better digital presence (37%), and training and development (33%).
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in October 2024, with a seasonally adjusted 35% of small business owners reporting jobs they could not fill. The reading is up one point from September 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from September. About 20% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “On Main Street, the job market remains challenging. Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
- The car wash industry posted 7% growth year over year in Q3 2024, according to the latest quarterly report from Rinsed in Carwash.com. The results show a continuing shift toward subscription-based models, with member revenue growing 16.6% as retail revenue fell 5.3%. Growth in the industry, however, is decelerating, indicating both a maturing market and potential higher customer churn, per the report.
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