Key Industry Factors

1. Number of Vehicles

    • Over 250M vehicles on the road in 2015
    • 2016 sales 17.5M
    • 2017 sales 17.7M
    • 2018 projected 18M

    2. Miles Driven Are a Key Factor

    • Nearly flat for last 5 yrs

                    - 2010 – 2.99B vs. 2014 – 3.03B

                    - 2016 – Over 3.1B +1.9%

    • Down on a per car basis

                   - 7% below peak in ‘04

                   - Lowest in 17 yrs

                   - Vehicles or road +6%

                   - Miles driven +3%

    3. The Shift to Do-It-For-Me Continues

    • More vehicles per bay than ever

                 - ‘15 = 220 per bay

                 - ‘03 = 175 per bay

    • Complexity increase

                - MPG regulations

                         •‘16 = 35

                         •‘25 = 54.5

                         •‘30 = 86

      Under Performed Maintenance

      • 1 in 5 cars need ignition work
      • 1 in 10 cars need a bulb
      • 1 in 2 cars need a new wiper blade
      • 1 in 4 cars need new antifreeze
      • 1 in 3 cars need a new battery
      • 1 in 2 cars need a new air filter
      • 1 in 10 cars need a new cabin air filter
      • 1 in 3 cars need new tires

      Digital Interaction Age

      • Social Media

                - 78% US Population are active on Social Networks (up 26% in 5 Years)

      • Video

               - 67% of millennials agree they can YouTube anything they want to learn

               - “How To” videos

      • Reviews

              - 88% of shoppers incorporate reviews in their buying decision

              - 95% unhappy customers return when negative review is resolved quickly

      Digital Age of Auto Repair

      • More time educating the customer

                - Online Estimates and “Auction” mentality

      • Online Appointment booking
      • Internet exposure

                - Almost half of all vehicle repair starts on the internet

                - 75M monthly searches for service

                - 70% of drivers 18-44 use search to find a shop

      • Explosion of Mobile

                - Smart phones in US to reach 222.9M in 2017

                        - Total US Population is 326.5M

      Industry Summary

      • More, older cars than ever,  driving more miles than ever
      • Less DYI each year
      • Better Vehicle quality and longer service intervals leading to record level of Under Performed Maintenance
      • Record level of Import Nameplates
      • The new consumer, younger and more digitally active
      • Vertical Integration is Up and Coming
      • Shortage in Auto Technicians
      Jackie Calabrese