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
Jan 29, 2025 - Employment, Labor Costs Up
- Employment by car washes rose 3.1% in November 2024 compared to a year ago, according to the US Bureau of Labor Statistics (BLS). Average wages for nonsupervisory employees at car washes were up 2.3% in November 2024 year over year, reaching $18.44 per hour. Leading industry indicators showed improvement in November 2024, with consumer spending up 2.9% in November 2024 compared to a year ago per the Bureau of Economic Analysis and total vehicle miles traveled up 2.8% in October 2024 year over year per the Bureau of Labor Statistics.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
- According to a Q4 2024 Pulse Report from the International Car Wash Association reported by Car Wash Magazine, transactional customer price satisfaction fell to the lowest level since Q1 2023, with 30% reporting they were “very satisfied.” Transactional customers value promotions such as Buy One Get One and loyalty programs when choosing a car wash. Budget-minded consumers led to an increase in home car washing in the quarter, resulting in a modest decline in washers who use a professional car wash most often. On a positive note, over 80% of monthly unlimited car wash subscription customers surveyed say they are highly satisfied, and over 90% reported they intend to renew.
- 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%).
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