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
Sep 26, 2024 - Employment Up, Wages Fall
- Employment by car washes grew almost 3% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics. Average wages for nonsupervisory employees at car washes fell 3.4% in July 2024 year over year, reaching $17.82 per hour. Total vehicle miles traveled on all roads and streets grew 1.3% in May 2024 compared to a year ago, reaching an estimated 293.4 billion vehicle miles, per the Department of Transportation. Consumers may spend more on car washes during periods of higher consumer spending. Consumer spending levels were up 2.6% in June 2024 from the previous year and up 0.2% from the previous month, according to the Bureau of Economic Analysis.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in August 2024, with a seasonally adjusted 40% of small business owners reporting jobs they could not fill. The reading is up two points from July 2024. A seasonally adjusted net 13% of small business owners plan to create new jobs over the next three months, down two points from July. About 21% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “Job openings on Main Street remain historically high as small business owners continue to lament the lack of qualified applicants for their open positions. Owners have grown understandably frustrated as attempts to fill their workforce repeatedly stall and cost pressures continue to rise.”
- 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.
- Consumer confidence levels increased in August 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 103.3 in August 2024 from 101.9 in July 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those over age 35 and those in the income category of over $100,000. Plans for large appliances and smart phone purchases rose on a six-month average basis. Plans to buy a home dropped to a 12-year low while plans for car purchases improved on a six-month average basis.
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