Car Wash Industry Report August 2021
Industry Overview
Operators’ primary activities in the industry include cleaning, washing, and waxing automotive vehicles. This space does not include gas stations with an in-bay car wash or companies that predominately provide automotive repair and maintenance services.
Key Trends
COVID-19 has depressed the economy, resulting in layoffs and higher unemployment rates throughout the country. A lack of disposable income in households has shrunk the demand for car washes. With a strong economy, rebounds are expected and consumers will return to car washing services.
Regulation and public opinion will shift operators to more eco-friendly services. This focus will be on water usage and cleaning contaminants.
Lower gas prices boost vehicle registration and increase average miles driving, and thus increase car wash demand.
Work-from-home orders will hamper growth in the industry as consumers will reduce commuting.
