Sears Holdings - Competitors

Sears Holdings Competition

Now Viewing Sears Holdings's competition in: Automotive Repair Shops

Recent Developments

US Auto Sales Declining - US new auto sales fell to a 16-year low in July 2008, according to the Associated Press. Auto repair shops may benefit from declining new auto sales because older cars require more repairs. Experts cite US economic weakness, a tight credit supply, and falling demand for larger vehicles as key causes of the decline.

Training Needed to Work on Hybrid Vehicles - Auto repair shops will need to provide additional employee training due to increasing sales of hybrid vehicles, according to The St. Petersburg Times. Hybrids accounted for 2.5 percent of all US auto sales during the first seven months of 2008, according to the Green Car Congress, but many experts predict that hybrid vehicle sales will rise. Regular mechanics can perform routine work on hybrid vehicles, according to the service director for Toyota of Tampa Bay, but hybrid-certified mechanics are essential for more extensive work, especially work related to the high-voltage electrical system.

Customer Complaints Increasing - US consumers are increasingly dissatisfied with auto repair shops, according to the Better Business Bureau (BBB). The auto service industry rose to ninth in 2007 from 11th in 2006 in the number of complaints filed with the BBB. The auto service industry fared better than car dealers in 2007; however, complaints about service at new car dealerships ranked third, and used dealerships ranked eighth.

Competitive Landscape

Demand depends on the car usage, which is linked to economic activity. The profitability of individual companies depends on convenient location and good marketing. Large companies are more likely to use expensive diagnostic equipment efficiently and to benefit from advertising, but the economies of scale are small. The industry is labor-intensive: average annual revenue per worker is about $90,000.

Full Industry Overview For Automotive Repair Shops

Automotive Repair Shops Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US automotive repair, maintenance, and services is forecast to grow at an annual compounded rate of 5.8 percent between 2007 and 2012.

Automotive Repair, Services Growth Slowly Declines

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.