"The Automotive Industries Association of Canada (AIA) recently commissioned DesRosiers Automotive Consultants to undertake the first detailed analysis of the number of service bays in Canada. This groundbreaking study used a variety of proprietary surveys and methodologies to explore the number of commercial bays handling light vehicle repair and maintenance, excluding tire, glass and collision focused shops. The analysis indicates that the total bay count in Canada in 2014 was 106,913 bays spread across 16,683 locations. Independent service outlets had the largest location count (11,904) and accounted for approximately fifty percent of the overall number of bays. At a national level, the DAC analysis indicated there were 221 light vehicles on the road in Canada for each service bay with provincial variations being notable as always.Overall, the service bay sector is operating close to capacity handling in excess of 64 million service visits annually."
Lets look at these findings from a service productivity perspective.
- Lets be optimistic and agree that the average RO (repair order) is 2.5 hours.
- There are 8 working hours per day for each service bay.
- Each service bay can accomodate at least 3 vehicles per day (8 divided by 2.5 = 3.2)
- At 106,913 times 3 = 320,739 vehicles can be serviced in 1 day across Canada
- 106,913 times 7.5 hours (we agreed on 3 vehicles) = 801,847 hours at $ 100/hour = $80 M of service labor sales per day - we are not counting parts.
- At 20 working days / month 320,739 x 20 = 6.4 M vehicles per month = 76 M vehicles per year
- If from above 64 M visits = 1 vehicle per visit
- The service bays can handle 76 M vehicles, 64 M is 84% of the capacity in number of vehicles and hours.
- A service bay that runs at 84% capacity is not productive, and does not make good money.
- From the above the vehicle population in Canada is 23.6 M lets say 24 million and there are enough service bays to service 6.4 M vehicles per month in a 4 month time frame every vehicle in Canada can be serviced.
A service bay in an 8 hour day should generate a 20% premium in productivity, in 8 hours 9.6 hours are sold at 2.5 hours per RO (again being very optimistic at 2.5) that is 4 vehicles per bay per day.
Some folks are not making the money they should or could with their service bays.