Gaining speed: Stable macroeconomic growth across Canada will boost demand for auto mechanics

Revenue growth for the Auto Mechanics industry slowed during the recession as consumers increasingly opted for alternative repair services or self-repair. As the economy picked up, more consumers purchased newer vehicles, also hampering industry revenue. However, over the next five years, higher disposable income and more used car sales will contribute to increasingly steady revenue growth...read more.

Industry Statistics & Market Size
Revenue
$12bn
Annual Growth 13-18
3.5%
Forecast Growth 18-23
Profit
Employment
70,648
Businesses
23,043
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Fuel-efficiency targets set by the Canadian government have led to additional modifications in industry services
  • Growth in new car sales threatens industry demand from commercial clients
  • Industry demand will likely grow in line with overall increases in consumer disposable income
  • Industry Report - Starting a New Business Chapter

    Barriers to entry in the industry are moderate and include substantial capital requirements, access to skilled labour and various industry certifications. Garages can provide basic repairs and tune-ups with jacks, handheld tools and resale parts, but additional investment in car lifts, pneumatic tools and additional machinery will vastly improve the diversity and efficiency of services a garage can provide. Establishing a brand name also poses a barrier for some entrants. Smaller companies can compete by catering to niche markets (e.g. luxury vehicles) or providing superior customer service.Skilled labour is extremely important for garages to perform a range of services, and many mechanics obtain specific industry certifications to compete for higher salaries. Whi...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
  • Strong demand
  • Profit stabilizes
  • 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
  • Brake repair and replacement
  • All other unscheduled repair services
  • Electronic and electrical system repair
  • Heating and air conditioning repair
  • Wheel and alignment services
  • 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
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Auto Mechanics

  • Basis of Competition
  • Internal
  • External

  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • 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?

    IBISWorld’s Auto Mechanics market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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