Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Trust remains paramount for car owners
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- Figure 1: Location reasons, October 2017
- Advanced driver-assistance systems reduce collisions
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- Figure 2: Percent difference in police-reported crash rates, vehicles with front crash prevention vs. vehicles without, January 2016
- Car owners still aren’t proactively scheduling service
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- Figure 3: Vehicle maintenance behavior, by age, October 2017
- The opportunities
- Auto service and repair market forecasted for growth
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- Figure 4: Total US retail sales and fan chart forecast of auto service, maintenance, and repair, at current prices, 2012-22
- Increasingly complicated vehicles increasingly expensive to fix
- Younger car-owners seek recommendations on social media and online reviews
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- Figure 5: Vehicle maintenance behavior, by age, October 2017
- What it means
The Market – What You Need to Know
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- Auto service, maintenance, and repair spend continues growth
- Americans are driving more than ever
- ADAS prevent accidents but cars are pricier to fix
Market Size and Forecast
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- Auto service, maintenance, and repair expected to grow through 2022
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- Figure 6: Total US retail sales and fan chart forecast of auto service, maintenance, and repair, at current prices, 2012-22
Market Breakdown
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- Nearly half of customers have gone to independent repair shops
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- Figure 7: Automotive maintenance/repair service, by location, Spring 2017
Market Perspective
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- Few car owners perform their own maintenance
Market Factors
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- Americans driving more than ever
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- Figure 8: Vehicle miles travelled, 2000-16
- ADAS will reduce accidents but increase cost for repairs
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- Figure 9: Percent difference in police-reported crash rates, vehicles with front crash prevention vs. vehicles without, January 2016
- Older vehicles on the road will require even more maintenance
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- Figure 10: Average age of light vehicles in the US, 1995-2016
- New-vehicle sales drive warranty work
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- Figure 11: Warranty percentage of fixed-ops sales, 2013-16
- High consumer confidence promotes maintenance spending
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- Figure 12: Consumer confidence and unemployment, 2000-September 2017
Key Players – What You Need to Know
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- Franchise dealerships benefiting from warranty-covered services
- Openbay expands offerings for service providers
- Service centers struggle to find and keep qualified technicians
- Self-driving cars won’t be self-repairing
What’s Working?
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- Warranty work continues to grow
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- Figure 13: Warranty as a percentage of fixed-ops sales, 2013-16
- Openbay increases integration with service center operations
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- Figure 14: State Farm informational email, October 2017
What’s Struggling?
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- Service departments struggle to attract and retain talent
- Franchise service centers have a pricey reputation
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- Figure 15: Location reasons, by service location, October 2017
What’s Next?
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- Insurance companies streamline claims process on mobile
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- Figure 16: Allstate informational email, October 2017
- Self-driving cars are a potential boom for service providers
The Consumer – What You Need to Know
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- Service providers need to establish trust with car owners
- Model year and purchase type alters vehicle servicing behavior
- Car owners likely to use the same auto service provider
- Branding and warranty are key for newer-car owners
Auto Maintenance or Repair Services
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- Nine out of 10 car owners had work professionally done in the past year
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- Figure 17: Auto maintenance or repair services, October 2017
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- Figure 18: Christian Brothers Automotive, direct mail, October 2017
Vehicle Model Year
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- One third of vehicles serviced over ten years old
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- Figure 19: Vehicle model year, October 2017
- Figure 20: Vehicle model year, October 2017
- Older vehicles get slightly more work done
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- Figure 21: Auto maintenance or repair services, by model year, October 2017
Purchase Type
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- Majority of vehicles serviced were purchased new
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- Figure 22: Purchase type, October 2017
- Purchase type correlated with age and income
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- Figure 23: Purchase type, by age and income, October 2017
- Over 40% of new car purchases are five years old or older
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- Figure 24: Purchase type, by model year, October 2017
Service Location
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- Dealerships and independent repair shops most-used locations
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- Figure 25: Service location, October 2017
- More than half of new vehicles are taken to dealerships
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- Figure 26: Service location, by purchase type, October 2017
- Auto service chains over-index among urban residents
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- Figure 27: Service location, by area, October 2017
Location Reasons
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- Trust continues to be critical in choosing a service location
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- Figure 28: Location reasons, October 2017
- Trust becomes more important as incomes rise
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- Figure 29: Location reasons, by income, October 2017
- Newer-car owners go with brand and warranty
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- Figure 30: Location reason, by vehicle model year, October 2017
- Independent repair shops chosen because of trust, location, and cost
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- Figure 31: Location reasons, by auto service location, October 2017
- Location Reasons TURF Analysis
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- Figure 32: TURF analysis – Maintenance and repair reasons, October 2017
Auto Maintenance Behavior
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- Car owners tend to stick with the same location
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- Figure 33: Auto maintenance behavior, October 2017
- Dealerships and independent repair shops get one-stop-shop customers
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- Figure 34: Auto maintenance behavior, by auto service location, October 2017
- Younger car-owners more likely to book appointments same day
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- Figure 35: Auto maintenance behavior, by age, October 2017
Facility Amenities
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- Wi-Fi tops desired amenities
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- Figure 36: Facility amenities, October 2017
- Figure 37: TURF analysis – Desired amenities, October 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
- TURF Methodology
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