Industry Analysis & Industry Trends
The recession both benefited and hindered the industry. A decline in disposable income and employment resulted in a greater number of consumers transforming into do-it-yourself customers and visiting auto parts stores to do their own auto repairs. At the same time, the poor economic climate limited demand from commercial clients, which rely on strong economic conditions to increase production. Over the next five years, disposable income and employment will continue to rise, resulting in weaker demand from consumers, but stronger demand from commercial clients... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the industry are moderate and include substantial capital requirements and access to skilled labour. Establishing a brand name also presents a barrier for some entrants. Smaller companies can compete by carrying specialized parts or providing superior customer service. Barriers largely reflect the growing market concentration among auto parts stores.
Potential entrants face significant monetary outlay, with initial capital investments ranging between $300,000 and $600,000 per store. For example, opening a NAPA Auto Parts store costs about $600,000, which includes start-up inventory, computer systems, office equipment, signage, furniture and fixtures. Potential industry operators also must have access to a skilled workforce... purchase to read more