"Even though total car and light truck service market share of service stations and garages declined nearly one-fifth between 1995 and 2000, garages actually increased their service market percentage over this five-year span, while service stations declined dramatically in strength," reported Jim Lang, president of Lang Marketing Resources, Inc., (www.langmarketing.com), a Wyckoff, New Jersey research and consulting firm specializing in the Vehicle Products Industry.
From 157,200 outlets at mid-year 1995, the service station and garage population skidded to 145,625 by the middle of 2000. The combined service market product share of service stations and garages slumped from 36.1% to 30.6% over this five-year period.
"The defining difference between service stations and garages is the fact that service stations sell gasoline, while garages do not have pumps," said Lang. Between 1995 and 2000, the number of service stations declined by approximately 11,000, while the garage population remained relatively unchanged, dropping by fewer than 300 locations. "Service stations accounted for 17.6% of car and light truck service market product sales during 1995, slipping to 11.8% of the 2000 market," noted Lang.
In contrast, garages moderately increased their service market product share, climbing from 18.5% of 1995 car and light truck service market product volume to 18.8% of the 2000 market. "While garages increased their product sales at a 3.9% average annual rate between 1995 and 2000," noted Lang, "service station product volume declined at a 4.3% average annual rate." The net result was a miniscule 0.2% average annual increase in combined service station and garage light vehicle production sales between 1995 and 2000.
"Over the next five years, the combined service market product share of service stations and garages will be more than offset by a steady decline in service station percentage of car and light truck service market product volume."