Festive franchising - 12 days of Christmas...
As Christmas approaches and the year draws to a close, it’s both a time for reflection and looking to the future. If...
The UK Automotive Franchise Industry isn’t refined to one market alone, it’s a collection of markets that all focus around automobiles; for example, you might have tow bar installers or alloy cleaners - areas that may not be as profitable as selling cars, but still has a large market. So, if you are interested in automobiles, they’re a lot of different franchises out there that are related which may be the unique one that grabs your attention. You can check them out here Automotive Franchises. Before you select the perfect automotive franchise for you, perhaps check to see if the market looks good for the UK Automotive Industry. When you consider how many types of franchises are available, analysing the market is close to impossible as they differ hugely in cost and service so it is better to understand how the manufacturing market is performing, as if they’re more cars, they need more services.
According to SMMT’s Motor Industry Facts 2017, the UK Automotive turnover is £71.6 billion; this vast wealth of money is still considerably low when compared to sales on a global scale. We were ranked 13th for total output for global automotive manufacturers in 2016 and 4th when limited to Europe. This demonstrates that our influence in the world, when it comes to automotive manufacturing, but it isn’t as high as some other countries that have a lower GDP, but this could be down to a number of reasons; such as cost for raw materials or staff. It is more important to understand how relevant the automotive industry is for the UK economy. In 2015 the UK automotive manufacturing industry accounted for 12% of exported goods with the value of £34.3 billion, the industry added £18.9 billion in value to the UK. SMMT also states that 2015-2016 saw a 8.5% growth in the market, so the market is clearly doing well, but as I’ve previously mentioned, it all comes down to how many cars are there for franchise services. When you consider that they’re over 33.5 million cars currently on UK roads with 2,692,237 new cars registered in 2016 the market is still incredibly large. With all this statistical information combined, it makes it hard to disagree when we say the market is healthy, but how long will it continue to stay healthy?
Assuming you’re not planning on spending time, money and effort in setting up a franchise for six months and then quitting, it’s imperative that you do research into the franchise forecast. With the continued growth in the industry, overall, the trend does look positive but the apprehension surrounding the automotive industry is the law that governs our country. CO2 and carbon emissions are becoming one of the largest talking points in most countries, with cars being a major contributor to this problem we are seeing more regulations around the uses of cars with more foreseen. This will affect the market, but until we know the full extent of the regulations it is unsure how exactly it will happen. The other talking point would be new technology in cars, however this isn’t necessarily a bad thing for the franchise industry. As with a lot of new technologies, once a product is created then you need somebody to service that new product and any new features it may offer. This highlights that technology may be a good thing for the franchise industry but with cars becoming smarter and smaller, it might not have the effect, it might also make some franchises services redundant.
The general consensus of the industry is that you have a secure immediate future and a likely secure long-term future but with all the technology that is likely to come out and policies that will directly affect car sales and usage, we cannot guarantee how the market will look in 30 years. That being said, if you consider yourself a savvy businessman, with the right determination, you can turn any news into good news.