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Parking Lots & Garages
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US parking lots and garages industry includes about 2,600 companies with combined annual revenue of about $8 billion. Major companies include Ace Parking, Ampco System Parking, Central Parking, Standard Parking, and the US operations of Impark. The industry is concentrated: the top 50 companies generate about 75 percent of revenue. About 90 percent of companies operate a single facility.
The parking lots and garages industry includes companies that provide temporary parking spaces for vehicles on an hourly, daily, weekly, or monthly basis. The industry does not include providers of long-term vehicle storage.
COMPETITIVE LANDSCAPE
Demand is driven by the occupancy rates of commercial real estate: large buildings require parking spaces for commuters, customers, and related area industry. The profitability of individual companies depends on operational efficiency and customer service. Large companies have advantages in relationships with large property managers and owners, and economies of scale in operating efficiency. Small companies can compete effectively by catering to customer needs and operating a desirable location. The industry is labor-intensive: average annual revenue per employee is about $75,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services are auto parking services in parking lots and garages. Ancillary services, such as oil changes, auto detailing, and dry cleaning pickup, are offered at many urban parking facilities. Companies with facilities at airports frequently offer shuttle buses between the parking facility and airport terminal.
Parking facility companies generally operate through two arrangements: management contracts or leases. Under management contracts,...
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