As they return to regular driving, delayed oil changes will be carried out and normal maintenance routines restored. 64.5% of auto mechanic customers are individual households, many of whom are reliant on their cars to get to work, shop, carry kids to school, and engage in leisure activities. That said, cars are such an essential part of American life that maintenance work can only be delayed so long, and the longer an oil change is put off, the more likely that the engine will suffer costly damage. If a car owner is working from home and has reduced leisure activities then the car might be sat idle most of the time, and so there seems little need for an oil change. The fact that people are traveling less, both for work and for leisure, adds to this. With so many jobs lost, prices rising, and economic uncertainty, people are making savings where they can, and for many that means fewer oil changes. Some repairs and maintenance can be postponed when money is short, and oil changes are among them.
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The state of the economy, and its effect on disposable income, is clearly the key driver here. It only reached $7 billion in revenues in 2021, and though it’s expected to grow by a further 6% in 2022, this will still leave the industry nearly a billion dollars behind where it was three years before. Predictions that the industry would return to pre-pandemic levels within a year proved overly optimistic. Revenues for oil change businesses across the US fell by nearly $2 billion in 2020, to around $6.5 billion. Businesses moved toward this model, more frequently using drive-thru and drop-off oil change services to reduce the risk of infection, and expenses to adjust to the pandemic were small compared with other industries.ĭespite this, the slowdown in travel and caution about non-essential contact led to a significant drop in the industry’s earnings. The frequent use of a drive-thru business model meant that oil change shops could easily stay open during the COVID-19 pandemic, as customers could have their oil changed without any close human contact. 🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)
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Oil change shops take away all of this hassle.
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Drivers want to avoid the hassle not just of the oil change itself but of disposing of the used oil, which can be a dangerous pollutant. Home maintenance is the exception, not the rule. Over the past twenty-five years, attitudes have shifted. This was still regarded as something you did for yourself, a holdover from the days when cars were simpler and much more maintenance took place at home. As recently as the mid-1990s, 65% of American drivers changed their own oil. This led to greater vehicle use and so more need for oil changes.īut the industry also benefited from a change in attitudes to oil changes. One of the drivers for this growth was declining oil prices, which encouraged people to drive their own cars rather than use public transport or share rides. The US oil change market was worth over $8 billion in 2019, with annualized growth of 1.3% from 2016 to 2021. In 2019, there were over 7,000 oil change and lubrication shops in the US, with average sales of over $900,000 per year. This helps to keep the process quick and easy for customers, and so keeps business flowing.
These are often drive-thru businesses and will usually provide an oil change without the need for an appointment. There are over 25,000 businesses in the American oil change industry, employing over 76,000 people, all of them working toward providing quick, easy oil changes.
Oil change businesses, also referred to as fast-lube, let customers get this one part of regular car maintenance done quickly and with the minimum of fuss. While most auto repair and maintenance is carried out by general purpose businesses covering everything a car might need, oil change has remained as a separate sub-sector of this industry.
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