Automotive Oil Change & Lubrication Services Industry Profile

Report Page Length: 10-12
Last Quarterly Update: 11/28/2016
SIC Codes: 7549
NAICS Codes: 811191
Chapters Include:
Industry Overview Trends & Challenges Industry Forecast
Quarterly Industry Update Call Prep Questions Website & Media Links
Business Challenges Financial Information Glossary & Acronyms
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Excerpt from Automotive Oil Change & Lubrication Services Industry Profile

Companies in this industry provide motor oil changes and lubrication services for automobiles and light trucks. Major US companies include Havoline Xpress Lube (owned by Chevron), Jiffy Lube and Pennzoil 10 Minute Lube Center (both owned by Royal Dutch Shell), and Valvoline Instant Oil Change.

The US automotive oil change and lubrication industry includes about 5,000 companies with combined annual revenue of about $5 billion.

COMPETITIVE LANDSCAPE

Demand is driven by the amount of driving that consumers do and by new car sales. The profitability of individual companies depends on convenient location and good marketing. Large chains have an advantage in name recognition, but the operations of individual locations are similar. Small companies can compete successfully by owning favorable locations. The US industry is fragmented: the 50 biggest companies generate about 35% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are oil changes (about 70% of sales) and other preventive maintenance. Some locations provide repair services. Routine maintenance services like adjusting tire pressure, changing windshield wipers, replacing light bulbs, and topping off fluid levels are usually done in 10 minutes or less.

A typical location performs about 1,200 to 1,500 jobs per month. Most locations operate two to five bays in a drive-through building, and many use basement construction so that oil can be changed below while other services are being completed above. However, to reduce capital requirements and enable quicker relocation, vehicle lifts can be used rather ...

 
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