Car washing is expensive. That is not necessarily news. But development costs for conveyorized car washes have reached a level that has effectively priced out small, independent start-ups.
With new tunnel development reserved for owners with deep pockets or well-heeled investors, mom-and-pop operators must turn to the only economically viable segment left: in-bays and self-serve.
While the segment took it on the chin over the past decade as express sites continued to pop up around the country, it is starting to punch back. Operators, manufacturers, and industry pundits are predicting an in-bay/self-serve revival, and we are starting to see increased interest and investment, especially in underserved and rural markets.
As it does every October, this issue includes our annual In-Bay Automatic Survey, which benchmarks the segment’s current state. The report provides hard data on the economics, operations, and overall health of the in-bay market. This year’s report includes data that points to a sunnier tomorrow.
One of the report’s most exciting statistics is that two-thirds (67 percent) of in-bay operators saw a bump in volume over the past year. This is the greatest single-year increase recorded in over a decade.
Why the increase in volume? I am just speculating here, but perhaps customers are flocking back to the bays because of the relatively low cost of a wash (compared to typical conveyor rates) and the improved performance of the new in-bay units on the market today.
One thing I can say for certain is that operators are increasing their investment across the segment. Forty percent of survey respondents report plans to purchase equipment over the next 12 months, one of the highest rates seen in years.
And for good reason. Seventy-five percent of survey takers report an express exterior in their market, with sixty-one percent saying the tunnel wash has hurt their business.
In-bay operators have two choices. They can sit back and watch their market share shrink amid increased express competition, or they can fight back.
Many are choosing the latter. They are buying new equipment, shortening maintenance intervals, and leaning into their market differentiation. Eighty-six percent of those surveyed report being open 24/7, a feat that only a handful of conveyor operators can claim.
Be sure to check out the full results starting on page 27. The numbers are encouraging and point to a shift, however small, in the market, as in-bay and self-serve operators continue to fight for their piece of the pie.