Lang Aftermarket iReport: Three outlets propel purchased service

Jim Lang

“Three groups of repair outlets have dominated car and light truck Purchased Service growth across the U.S. during the past five years (2014 to 2019). Purchased Service (the cost of mechanics to install products and perform diagnostics) has soared more than $18 billion in the past five years, generating over half of the total light vehicle Do-It-for-Me (DIFM) aftermarket growth (Products and Purchased Service).”

“Repair Specialists, Vehicle Dealers, and Service Stations & Garages combined for more than 75% of Purchased Service growth during these five years. See the just-released 2021 Lang Aftermarket Annual for a 10-year analysis of the Purchased volume of all major types of light vehicle repair outlets.”

— Jim Lang, publisher, Lang Aftermarket iReport

Purchased Service Soars

Purchased Service increased more than $18 billion over the past five years and generated 58% of total car and light truck Do-It-For-Me (DIFM) aftermarket expansion (Products and Purchased Service).

Diagnostics has led the way in propelling Purchased Service to a higher annual volume share of total aftermarket DIFM sales.

Concentrated Purchased Service Growth

Three groups of repair outlets led the way in car and light truck Purchased Service expansion. They generated more than 75% of total light vehicle Purchased Service growth despite performing a smaller portion of total Purchased Service during these five years.

Outlets Purchased Service Volume

Service Stations & Garages recorded the highest light vehicle 2019 Purchased Service volume, over $21 billion, topping one-quarter of the total 2019 Purchased Service for cars and light trucks across the U.S.

Two Other Leading Repair Outlets

Vehicle Dealers ranked second in total Purchased Service during 2019, at nearly $20 billion, followed by Repair Specialists (outlets focusing on a limited menu of car and light truck repair) with nearly $19.5 billion in 2019 Purchased Service.

Foreign Specialists (outlets focusing on the repair of foreign nameplates) ranked fourth, with just under $10 billion in Purchased Service, followed by Tire Stores, Discount Stores/Mass Merchandisers with bays, and Auto Parts Stores with bays.

Purchased Service Growth: 2014 Through 2019

Three repair outlets generated over 75% of the more than $18 billion surge in car and light truck Purchased Service over this five-year span.

Repair Specialists achieved the greatest Purchase Service increase, just over $5.0 billion, a total of more than 27% of the Purchased Service gain during these five years.

Vehicle Dealers ranked second in Purchased Service growth from 2014 through 2019, up $4.5 billion and representing 25% of the Purchased Service expansion.

Service Stations & Garages, totaling the largest volume of Purchased Service between 2014 and 2019, ranked third in their contribution to the more than $18 billion surge in Purchased Service during these five years at $4.2 billion, over 23% of the total increase.

Other DIFM Outlets

Foreign Specialists recorded a strong fourth place share of Purchased Service growth, nearly 15%, followed by Tire Stores with 7% of Purchased Service growth and Discount Stores/Mass Merchandisers with bays accounting for approximately 5% of the increase over five years.

Auto Parts Stores with bays declined in Purchased Service volume during this five-year span.

Six Major Takeaways

• Car and light truck Purchased Service growth between 2014 and 2019 was dominated by three groups of repair outlets: Repair Specialists, Vehicle Dealers, and Service Stations & Garages.
• Service Stations & Garages rang up the greatest 2019 Purchased Service volume, over $21 billion, followed closely by Vehicle Dealers and Repair Specialist, each with more than $19 billion in 2019 Purchased Service.
• Repair Specialists generated the greatest increase in Purchased Service volume between 2014 and 2019, up $5.0 billion, followed by Vehicle Dealers, with a $4.5 billion increase and Service Stations & Garages with a $3.2 billion gain in Purchased Service.
• Repair Specialists, Vehicle Dealers, and Service Stations & Garages combined to generate more than 75% of the over $18 billion increase in annual Purchased Service volume between 2014 and 2019.
• Purchased Service volume, which has derived a substantial portion of its growth from increased diagnostic work by repair outlets, accounted for 58% of the total increase in car and light truck DIFM volume (Products and Purchased Service) between 2014 and 2019.
• See the all-new 2021 Lang Aftermarket Annual for a complete analysis of the Product and Purchased Service volume of each the seven major groups of light vehicle repair outlets over the past 10 years.

Copyright 2020 by Lang Marketing Resources, Inc.

NOTE: Special thanks to publisher Jim Lang for granting us permission to publish the Lang Aftermarket iReport.