You were probably too busy serving customers at your tire shop to notice, but there are a lot of signs that the automotive service sector is healthy in 2024.
Americans are driving more miles than ever before and keeping their vehicles for longer, and the auto care industry's growth last year exceeded expectations — to the tune of $392 billion.
Grease is as good as gold these days.
U.S. drivers traveled 3.26 billion miles in 2023, compared to 2.97 billion in 2022, according to the U.S. Department of Transportation (DOT). Most notable, however, is that 2023 was an all-time record, eclipsing the previous record from 2019. The average motorist travels around 14,500 miles a year.
The average vehicle age in the U.S. increased again in 2023 to 12.6 years. That number is up by two month from 2022, and while it might not seem like a lot, it is evidence that the pandemic's impact is still being felt.
The supply constraints of the pandemic, followed by new- and used-vehicle prices sky rocketing, put a lot of motorists in a position where keeping their older vehicle was the best — and sometimes only — choice.
For tire dealers and automotive service professionals, this is welcome news. Older vehicles require maintenance — and tires.
More then one tire dealer has told us he keeps a copy of our annual "Average vehicle age rises again" article (which can be found on page 3 of the June 17 edition) behind the counter just in case a customer needs a nudge to invest in repairs and maintenance of an older vehicle.
In 2023, the average passenger car was 14 years old, while the average light truck was 11.9 years old. Vehicle age has steadily grown for both segments the last 20 years.
From 1970 to 2000, the average age for a passenger car increased from 5.6 years (1970) to 9 years old (2000), according to the DOT. During that same time, the age of light trucks fluctuated, and in 30 years only increased by around seven months to 8 years old in 2000.
Todd Campau of S&P Global Mobility said the trend will continue as more vehicles reach the six to 14 year old range.
"With more than 110 million vehicles in that sweet spot — reflecting nearly 38% of the fleet on the road — we expect continued growth in the volume of vehicles in that age range to rise to an estimated 40% through 2028," he said.
That "sweet spot" of vehicle age is driving the aftermarket.
The U.S. auto care industry exceeded expectations in 2023, growing 8.6% to $392 billion, according to data in the recently released 34th edition of Auto Care Factbook.
The ACA said the value of general auto repair sales surged 15.5% in 2023.
If you're running a service shop, it's a good time to be in business.
It's also a good time to ask your customers, "how long do you plan on driving this car?"