The Future of the Industry: Dealership consolidation
Times are changing for dealerships across North America. Significant consolidation has led many to feel the effects of electric vehicles, rideshare services, and autonomous transportation have only just begun to affect the dealership market.
“National Automobile Dealers Association, consultant Glenn Mercer predicted the number of U.S. dealerships would drop to about 16,500 in 2025 from 18,000 in 2016. He also said in late 2016 that the number of dealers would fall to 6,500 owners by 2025 from about 8,000 in 2016.”
It appears this trend isn’t coming to an end anytime soon too. Dealership sales increased for the fourth consecutive year in 2017, leaving many to wonder if times of serious change are ahead, and, if their dealership will be affected. One prominent dealership buy-sell firm says it’s time to create a 20-year plan to face the storm or sell, a gut-wrenching concept for any dealership.
Truth be told, no one can predict the future. Although a big shift is likely impending, just how much the market turn will impact the dealership is anybody’s guess. Regardless, we’re here to help you navigate the journey. Our business was built on the reality that dealerships need better systems for profitable parts management if they want to keep the competitive edge. Even if we’re not the right fit for your dealership right now, we still encourage you to try new technology and continuously optimize your systems to keep your dealership cutting edge.
Thoughts, questions, or opinions? Get in touch!