As the year draws to a close, businesses across various sectors, especially in the car wash industry, are reflecting on their performance and forecasting for what lies ahead in 2025. The latest issue of Auto Laundry News features a blend of analysis from industry experts alongside their annual State of the Industry survey, offering a comprehensive overview of current trends and expectations for the future.
This year, the State of the Industry survey focused specifically on solution providers rather than car wash operators. This unique approach sheds light on vendor economic performance within the sector. According to the survey, 54 percent of solution providers reported an increase in sales figures in 2024 compared to 2023, with an average growth of 12 percent. This represents a slight improvement from the previous year, although it falls short of the more robust figures reported two years ago, when 70 percent of respondents indicated increased revenue.
Looking forward, optimism remains high, with 88 percent of solution providers anticipating further sales growth in 2025, predicting an average increase of 17 percent. This optimism is partly buoyed by ongoing positive consumer trends that suggest a strong demand for car wash services.
However, amidst the optimism, there are cautionary notes regarding potential economic shifts. John Olert, CEO of American Car Wash Solutions, highlighted concerns about possible changes in consumer spending as the high rates of return experienced by investors over the past decade are projected to soften. Olert referenced a Goldman Sachs prediction that the S&P 500 index may grow at a modest rate of just 3 percent annually for the next ten years, a stark contrast to the nearly 20 percent growth seen in the last decade.
Despite these economic warnings, industry leaders remain confident in the resilience of the car wash sector. Heath Pomerantz, CEO of WOW Carwash, expressed a forward-looking optimism, stating, “We’re budgeting for growth at our mature stores in both membership and single wash sales with confidence due to positive consumer trends.” Pomerantz also noted that membership retention rates are increasing, reflecting a growing customer base that values car wash services.
As the New Year approaches, the industry appears poised for a blend of cautious optimism and strategic planning. With various economic indicators suggesting a potential cooling off period for broader markets, car wash industry insiders appear ready to adapt and navigate whatever challenges may arise.
Source: Noah Wire Services