By Jim Utter
Director of Journalism
Despite inflation worries and a more pessimistic view of 2025 growth, the 2025 first quarter Pulse Report had some encouraging news for car wash operators.
The most recent issue of The Pulse Report, released on Wednesday, analyzed quantitative consumer and industry studies by the International Carwash Association, conducted online in February 2025.
The industry surveys were separated into two categories: retailers and suppliers. The consumer survey consisted of U.S. respondents, age 18 or older, who own or lease a vehicle. The U.S. Census is used for data weighting and the margin of error is +/- 1.9 percent at the 95 percent confidence level.
While retailers and suppliers appeared to be more conservative in their projections of growth in the first quarter, retailers reported record breaking subscription growth and non-member customer satisfaction was at an all-time high.
Customers are the driving force of any retail business, and its especially true in the car wash industry where word of mouth remains a top method of marketing.
It appears to still be doing well as overall customer satisfaction remains strong at 67 percent, with 78 percent for members and an all-time high of 64 percent for transactional purchasers.
In addition, a record 76 percent of operators reported subscription growth during the first quarter and members’ intent to renew their subscription reached its highest level (93 percent).
Consumers continue to have concerns about pricing, with 61 percent of members and only 41 percent of non-members satisfied with the price they paid for their car wash services. Also, 11 percent of members were unsure whether they would renew their subscription which is up from a year ago (8 percent).
When it comes to the projected growth of the industry this year, retailers expect to see a 6 percent increase, which is down significantly from a year ago (12 percent increase) but up slightly from 2024 Q4 (4 percent).
On the supplier side, growth expectations are even more tempered with suppliers projecting five percent growth in 2025, down from 13 percent one year ago.
When asked if they were positive about current conditions and about conditions six months out, just 39 percent of suppliers were positive about conditions now and 58 percent six months out. The current-condition response was the lowest in the survey since 2020 Q2.
The report indicates inflation worries persisted in the first quarter as reflected by the Total Consumer Price Index (CPI), with year-over-year growth from 2.4 percent in September to 3.0 percent in January.
The Core CPI, which excludes food and energy categories, remains stuck at 3.3 percent, a level it’s held consistently since mid-2024.
The addition of tariffs to goods from Mexico, Canada and particularly China may raise operating costs in the industry. A significant amount of the chemicals used in car washes are currently imported from China.
The report warns, “Car wash industry players should focus on margin protection this year, as costs will continue to go up across multiple operational vectors.”
