This category covers establishments primarily engaged in washing, waxing, and polishing motor vehicles (including automobiles, trucks, and buses), or in furnishing facilities for the self-service washing of such vehicles.
811192 (Car Washes)
An estimated 97 percent of Americans take their automobiles to commercial carwashes. In 1998, the International Car Wash Association estimated that there were 9,570 full-service carwashes in North America, approximately 4,546 exterior-only carwashes, nearly 30,000 self-service carwashes, and about 30,000 rollover/high pressure washes, the majority of these being affiliated with gas stations or convenience stores. Together these carwashes generated more than $14 billion in annual revenue.
The carwash industry grew rapidly from 1977 to 1987, but its growth began to slow in the decade following 1987. In 1977, there were 5,785 carwash establishments nationwide classified in SIC 7542. It was a business oriented to small-scale proprietors: these establishments were owned by 5,290 firms, of which 5,091 operated only one carwash. Approximately 45 percent were incorporated, another 42 percent owned by individual proprietors, and just 3 percent by partnerships. The total receipts for carwash establishments nationwide came to $668.6 million in 1997. Forty-two out of 5,290 carwash firms and 243 out of 5,785 carwash establishments reported annual receipts of $1 million or more.
Just ten years later, there were 9,132 commercial carwash establishments nationwide, an increase of almost 60 percent. The proportion of incorporated establishments had risen to just over 50 percent (but still a low figure for the service industries as a whole, in which 60 percent of all establishments were incorporated). The number of sole proprietors had dropped to 37 percent (compared to 32 percent for all service industries), and partnerships had jumped to almost 13 percent, nearly double the overall service industry figure of 7.3 percent. The total national revenues for the carwash sector had reached $1.8 billion, with California and Texas together representing more than one-quarter of nationwide revenue. Nationally, the average revenues per establishment were just over $197,000 a year (only 34 percent of the average for the service industry as a whole.) But because carwashes tended to be less labor-intensive than many other service industries, average revenues per employee for carwash establishments ($23,534) were slightly more than 50 percent of the service industry average.
In 1992, the number of carwash establishments in the nation had risen to 11,589, an increase of 27 percent. This indicated a slight leveling off in the rate of increase compared to the 1977 to 1987 period. The proportion of incorporated establishments had increased to 56 percent while the service industry average remained at 60 percent; individual proprietorships had dropped another two points, to 35 percent (slightly more than the service industry average), and partnerships accounted for only 9 percent. The leading state in the nation remained California (1,408 establishments), followed by Texas and New York. National revenues had increased by 47 percent to $2.64 billion, or $228,158 per establishment; but this was still only about 35 percent of the service industry average. Revenues per employee had increased by 21 percent, to $28,407; a mere 46 percent of the industry average.
The carwash industry is heavily affected by such issues as weather, climate, and time of day. A May, 1996, survey by Auto Laundry News reported that Saturday was overwhelmingly the best day for business, with an 82 percent vote. February, with 19 percent, was chosen the best month of the year, and November (0.5 percent) the worst. Not only did carwash owners have a favorite season (winter, with more than half the votes, as opposed to fall, with only 3 percent), they even had a favorite time of day. Just over 40 percent of respondents said the majority of their business was conducted between 1:00 and 3:00 p.m.
The carwash segment of the SIC 7540 industry group (which also includes Automotive Services, Except Repair) covers commercial establishments primarily offering car washing; car cleaning, polishing, and detailing; and bus and/or truck washing. These services are provided both to private individuals and to automotive dealers, automobile rental establishments, automobile fleet owners, and other businesses. Although carwash establishments may offer a combination of facilities and options, carwashes generally can be classified as coin-operated, self-service facilities, automatic facilities, full-service conveyorized facilities, or automobile detailers.
Coin-Operated Self-Service Facilities. In these self-service facilities, which generally do not require full-time supervision, customers clean their cars in drive-through bays equipped with "wand" type high-pressure spray nozzles and other car-cleaning accessories. Coin-activated controls determine the length of spray nozzle operation and allow the customer to switch among presoak; engine cleaning; tire cleaning; and foam, rinse, and wax sprays. In addition, these facilities generally provide coin-operated vacuums for the cleaning of car interiors and may have car care products such as towels and polishes available though coin-operated dispensers. In 1996, an average customer spent $1.50 for a five-minute cycle at a coin-operated self-service carwash. In 1998, average in-bay pricing for a self-serve carwash was about 32 cents per minute. The typical self-service carwash bay grossed $1,100 per month. Of the 98 percent of self-serves that had vacuums on the premises, the average monthly revenue per vacuum was $169. The average self-serve location has 5.4 vacuums.
Automatic Facilities. Like self-service washes, automatic facilities do not require full-time supervision, and they can service approximately 20 vehicles an hour. Here customers activate the automatic system by driving their cars onto platforms within open-ended bays. Rollover carwashes are based on guide wheels that follow a vehicle's contours with horizontal overhead brushes and vertical "wraparound" brushes that clean the car in presoak, undercarriage, foam, rinse, and wax spray cycles, followed by a hot-air dryer. Customer concerns about vehicle and paint finish damage have led to the development of "brushless" soft-cloth systems, and subsequently to the marketing of "frictionless" spray-only systems controlled by electric eyes and robotics technology. Like self-service facilities, automatic carwashes generally provide coin-operated vacuums for the cleaning of car interiors. In 1996, the average cost of a basic automatic carwash (as opposed to one offering extra cycles) was $3.40.
Full-Service Conveyor Facilities. Full-service facilities not only require more space than self-service or automatic systems, they are also more labor-intensive. In these facilities, full-time workers service 60 or more cars per hour as an automatic conveyor carries the vehicle through an open-ended service tunnel. In 1990, the International Car Wash Association reported that among full-service conveyorized facilities, 59 percent used cloth-only systems, 20 percent used friction/frictionless wash combinations, and 8 percent used frictionless washes only. On-line services typically provided by conveyorized facilities include exterior wash, rust-inhibiting undercarriage wash, tire and whitewall cleaning, various waxing options, and the scenting of interior air. Off-line services typically include cleaning and polishing of exterior and interior vinyl and leather, shampooing of carpet and upholstery, cleaning floor mats, cleaning ashtrays, cleaning the engine, and applying a polymer protectant. In the early 1990s, the typical cost of a customized car cleaning package at a full-service conveyorized system was approximately $30. In 1998, a full-serve carwash had an average wash volume of 65,113 vehicles. The average 1998 price for a full-service wash was $9.93. The average gross revenue per car was $11.21. The average gross income for a full-service carwash is approximately $730,000. Meanwhile, the average annual operating costs were $527,900, of which 46 percent was on-line labor costs.
Automobile Detailers. In these facilities, the focus is on manual cleaning of cars both inside and out, using hoses and brushes as well as hand-held tools rather than high-technology car washing equipment. The "detailing" of an automobile is an exhaustive process. A September, 1993, Harper's magazine article described detailing as the "cleaning of a car beyond all reason." In addition to essentially manual versions of the on-line and off-line services provided by full-service conveyorized systems, detailing operations focus on such car parts as hood interiors and spare tires and on "details" such as shining the interior of gas caps and dusting the spaces between radio buttons. In 1996, the typical cost for detailing was $131.10 for complete interior/exterior services.
The cost of carwash equipment may vary regionally, based on such factors as water availability and water quality and area soils or pollutants. According to the International Carwash Association, in 1998, annual operating costs for a five-bay self-service carwash were $56,500, whereas the cost of operating a full-service wash were more than ten times as much, or $527,900. The leading professional trade organization was the 5,000-member International Carwash Association, which publishes a semiannual directory and a monthly management report both in print and on the Internet. Chief among industry trade publications was Professional Car washing and Detailing.
An article in a 1923 edition of Literary Digest discussed the "first automobile wash-bowl that has been built in this country," a carwash located in St. Paul, Minnesota. For this three-minute carwash, "the owner drives his car in and around the bowl until he is satisfied that the mud has been cleaned from the chassis and wheels …at the exit door there is a spray with forced water which cleans the body … an electric drier completes the job." Three years later the same magazine described a seven-minute "Automobile Laundry," a carwash relying on two pitmen; hoses of hot, cold, and soapy water for car exteriors; and a compressed air hose for car interiors. The article predicted that the carwash would become "one of the largest specialized industries in the country."
The modern carwash industry began in 1946 in Detroit with the opening of Paul's Auto-Matic Car Wash, the "first automatic autowash in the world." The establishment was a conveyor-style carwash in which the car was pulled through by a moving chain. Twelve years later, the first full-service Jax Kar Wash opened in Detroit. This pioneering operation serviced 280,000 cars in its first year of business. Coin-operated self-service facilities and automatic rollover carwashes emerged in subsequent decades.
In the early 1990s, the carwash industry was in a dynamic phase. Important trends in the carwash industry included a customer preference for soft cloth or frictionless carwashes over automatic brush rollovers and the emergence of detailing operations and growth in the high-quality carwash segment. The adoption of sophisticated computer software for business planning, customer service, and bookkeeping needs, and an industry focus on environmental issues were other important trends.
At the beginning of the 1990s, Forbes magazine had described carwashes as "one of the largest small businesses in the United States and one that's growing at five to ten percent a year." But conditions began to change by the latter part of the decade, and while the industry continued to grow at a rate of six percent, new forces—particularly environmental laws and competition from service stations offering free carwashes with a fill-up—had begun to encroach.
States and communities have passed sewage, water conservation, and water reclamation codes that affect or are directed at commercial carwash establishments, and individual businesses are increasingly turning to a combination of fresh and reclaimed water in the operation of their car cleaning systems. In addition, the federal Environmental Protection Agency has begun to regulate the underground tank storage systems and to analyze the chemicals, detergents, and wax products used by the carwash industry.
Establishments in this industry sector have also faced increasing competition from service stations, convenience stores, and other facilities that offer washes as one of several on-site profit centers. Some of these utilize innovative technology such as a television, which customers view while pumping gas. On the screen they see an advertisement for a carwash, which they can purchase when they pay for their fuel. Others give away free washes with a gas fill-up.
The leading carwash chains, as reported in Ward's Business Directory of U.S. Private and Public Companies (1997) are National Pride Car Wash Systems, based in Fort Worth, Texas; Stanton Corp. of Virginia Beach, Virginia; Buffs-N-Puffs Ltd. of Murray, Utah; Hollingshead Industries Inc. of Sacramento, California; and Wash on Wheels Inc. of Sanford, Florida. Other national leaders included Tankar Stations, McKinley Car Wash, Car Salon Inc., White Glove Automatic Care Inc., and Gateway Waterworks Inc.
Employees of the carwash industry include vehicle washers; equipment operators and maintenance workers; secretaries, bookkeepers, and general office clerks; cashiers; and laborers and helpers. In the early 1990s, "revolving door" workers became an industry concern, in part due to the negative impact of employee turnover on customer service. This concern has prompted more careful hiring and training of employees and the implementation of incentive and commission programs, particularly in full-service conveyorized carwashes and in automobile detailing operations.
Abcede, Angel. "Automation Links Up Car Washes." National Petroleum News, June 1995.
——. "Car Wash Owners Seek Edge as Competition Heats Up." National Petroleum News, January 1995.
"The Flivver's Bathtub." Literary Digest, 13 January 1923.
"International Carwash Association Start-up Kit." Chicago, IL: International Carwash Association, 1996.
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