High speed: Per capita disposable income will increase, resulting in stronger downstream demand

The Auto Mechanics industry in Canada has been coasting over the five years to 2019, providing widely accepted and increasingly diverse automotive repair services to individual and business customers. Revenue growth is determined by demand from consumers, businesses and government agencies, all of which have increasingly sought out industry services. Additionally, as automobiles are driven more often and the average age of vehicles increases, demand for routine maintenance and repairs increases. This, in turn, bolsters industry revenue. Industry revenue is forecast to grow steadily over the five years to 2024. Per capita disposable income is expected to...read more.

Industry Statistics & Market Size
Revenue
$11bn
Annual Growth 14-19
2.6%
Forecast Growth 19-24
Profit
Employment
55,542
Businesses
27,162
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • As the average age of vehicles increases, demand for routine repairs increases
  • Small-scale garages heavily compete with other establishments on price
  • Industry revenue will steadily grow without significant volatility
  • Industry Report - Industry Investment Chapter

    The Auto Mechanics industry in Canada is characterized by a low level of capital intensity. In 2019, industry operators are expected to spend $0.07 on capital investments for every dollar spent on labour. Expenses consist mainly of wages and other labour-associated costs. Repair shops heavily rely on skilled labour for the diagnosis and repair processes. As a result, labour intensity in the industry is high. Employees within the industry are required to have a thorough understanding of technology as vehicles are now built with complex electronic systems and computerized components.Once the shop is set up, capital investments do not require frequent replacement, as the useful life of lifts, pneumatic tools and other equipment can last several decades. Non...purchase to read more.

    Additional Insights for the Auto Mechanics Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Auto Mechanics Industry are

  • Access to the latest available and most efficient technology and techniques
  • Proximity to key markets
  • Provision of superior after-sales service
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicle registrations and Per capita disposable income in the Auto Mechanics industry impact industry performance..

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    What's in this report

    What is the Auto Mechanics Industry?

    Operators in this industry perform mechanical and electrical repairs and maintenance for automotive vehicles, including passenger cars, trucks, vans and trailers. Auto mechanics often work independently or for small auto repair shops, garages and car care centres.

    Industry Products
  • Scheduled preventative maintenance
  • Brake repair and replacement
  • Powertrain, engine and transmission repair
  • Electronic and electrical system repair
  • Wheel and alignment services
  • Heating and air conditioning repair
  • All other unscheduled repair services
  • Industry Activities
  • Performing general automotive repairs
  • Repairing and replacing automotive engines
  • Repairing and replacing automotive exhaust systems
  • Repairing and replacing mufflers
  • Repairing automotive transmissions
  • Repairing automotive brakes
  • Repairing automotive radiators
  • Performing automotive wheel alignments
  • Performing automotive electric repairs
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicle registrations
  • Per capita disposable income
  • Total vehicle-kilometres
  • National unemployment rate

  • Current Performance
  • Compounding drivers
  • Expanding profit cap
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Increasing services and customers
  • Expertise-driven workforce
  • Looming external competition
  • Table: Auto Mechanics Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Auto Mechanics Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Local Freight Trucking in Canada
  • Long-Distance Freight Trucking in Canada
  • Car Body Shops in Canada
  • Taxi & Limousine Services in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Auto Parts Stores in Canada
  • Automobile Wholesaling in Canada
  • Industrial Machinery & Equipment Wholesaling in Canada
  • New Car Dealers in Canada
  • Tire Wholesaling in Canada

  • Products & Services
  • Powertrain, engine and transmission repair
  • Scheduled preventative maintenance
  • All other unscheduled repair services
  • Brake repair and replacement
  • Electronic and electrical system repair
  • Wheel and alignment services
  • Heating and air conditioning repair
  • Chart: Auto Mechanics Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Individual consumers
  • Businesses
  • Government and not-for-profit organizations
  • Chart: Major Market Segmentation for the Auto Mechanics Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationMarketingRentUtilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Auto Mechanics

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Auto Mechanics Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Auto Mechanics Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Auto Mechanics Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Per capita disposable income (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Auto Dealer
  • A retailer that sells automobiles to the public and often is associated with an auto manufacturer.
  • Crashworthiness
  • The ability of an automobile to protect drivers and passengers during the moment of impact.
  • Nonemployer
  • A nonemployer is a business with no paid employees, annual revenue of at least $1,000 and subject to federal income taxes. Most nonemployers are self-employed individuals.
  • Telematics
  • The technology in vehicles used to communicate with the electronic systems that are present.
  • What Our Customers Say

    Why buy this report?

    The Auto Mechanics market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Auto Mechanics:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Auto Mechanics market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Auto Mechanics, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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