Automotive Repair Shops, NEC

Miscellaneous services done by automotive repair shops included automotive tune-ups, automotive electrical repair, battery and ignition repair, fuel system conversion, generator and starter repair, and brake work. This industry classification does not include such automotive service providers as emissions testing centers, inspection services, do-it-yourself garages, diagnostic centers, lubricating and oil change shops, emergency road services, rust proofers, window tinting shops, and towing services, all of which are covered under SIC 7549: Automotive Services, Except Repair and Carwashes.
According to a 2009 report by Dun & Bradstreet, this industry was made up of 36,296 establishments that generated $9.1 billion annually and employed 134,118. The vast majority of these firms were small shops: 94 percent of establishments employed fewer than 10 people. These establishments accounted for 62 percent of industry revenues. Of the numerous subsectors in this industry classification, automotive repair shops, not otherwise classified, was the largest sector, with 53 percent of the firms and over 45 percent of industry revenues. Other significant sectors included automotive electrical services, automotive machine shops, brake services and brake repair, and radiator repair.

The National Automobile Dealers Association (NADA) reported that franchised auto dealers brought in $82 billion in 2008, down from $85 billion in 2005. Franchised dealers had 357,779 service bays in 2008, down from 366,157 bays in 2007. However, the increase in average service charge per hour to $88 helped sustain the franchise service section. Nonetheless, with new car sales declining in the late 2000s and more older cars on the road, dealerships' service departments faced stiff competition from independent shops.

During the late 2000s, auto repair shops were benefitting from fewer new cars on the road and the overall increase in the average age of U.S. vehicles (9.4 years in 2009). As the economy sunk into recession at the beginning of 2008, many U.S. consumers decided to repair existing vehicles rather than invest in a new car. Because most warranty work must be done by a franchise dealer service department, the increasing age of cars benefited independent repair shops, who continued to siphon business from franchise dealers' shops.

As cars became a staple of American life during the middle of the twentieth century, demand for specialized repair services rose. More than 100 community colleges offered two-year degrees sponsored by the major automobile makers. In addition, the National Automotive Technicians Education Foundation (NATEF) certified quality training programs offered by high schools and technical schools. Computerized components used in cars have transformed mechanical repair to a job requiring specialized technical knowledge and training. Employment of technicians and mechanics was projected by the U.S. Department of Labor to increase at average speed through the year 2014.

Numerous firms had multiple-locations in this industry in the late 2000s. AAMCO Transmissions, Inc., of Bala Cynwyd, Pennsylvania, had over 900 independently owned and operated 900 sites offering complete car care services. Goodyear Tire & Rubber Company had over 1,600 locations nationwide. Grease Monkey International, of Greenwood Village, Colorado, had more than 200 centers operating nationwide and in Mexico. Meineke Car Care Centers, Inc., of Charlotte, North Carolina, had more than 900 locations across the United States. Midas, Inc., of Itasca, Illinois, had over 2,500 locations across the United States. Monro Muffler Brake, Inc., of Rochester, New York, had 720 locations. Tuffy Associates Corporation, of Toledo, Ohio, operated over 235 locations in 20 states; it also owned Car-X Auto Service, of Schaumburg, Illinois, which operated as a separate brand. Car-X had over 175 franchises and company-owned locations throughout the Midwest.