As a towing entrepreneur, it is important to be aware of the towing industry statistics and future trends to make well-informed decisions about your business. The towing industry is a billion-dollar industry with steady growth each year. Here are some key insights into the towing industry that every entrepreneur should know.
Current Statistics For The Towing Industry
Below are some current and recent statistics on the towing industry to help you understand the towing landscape:
- In 2018, the towing industry was worth an estimated $9.3 billion.
- The towing industry has seen a steady growth of 3% every year for the past five years.
- There are approximately 47,6180 towing businesses in the United States.
- These businesses employ around 100,000 people.
- Most towing businesses are small businesses with one to five employees.
- The average towing fee is $125.
- The average salary for a towing company owner is $94,000.
- The average salary for a towing operator is $36,000.
- Towing businesses typically make a profit margin of 20%.
- The towing industry can be a risky business with the fatality risk being four times higher than the average for all industries.
- Most businesses partner with insurance companies to cover liability risks.
Future Trends In The Towing Industry
Below are some future trends you can expect to see in the towing industry:
- The towing industry is expected to grow at a rate of 3.5% from 2019 to 2024.This growth is largely due to the increasing number of car accidents and breakdowns.
- The towing industry is expected to continue to grow at a steady rate in the coming years, reaching a market value of $11.8 billion by 2025.
- The number of towing businesses is expected to increase as the industry becomes more competitive, potentially reaching 50,000 businesses by 2025.
- Towing fees are expected to increase as towing companies invest in more expensive equipment. By 2025, the average towing fee is expected to be $150.
- The average tow truck operator’s salary is expected to increase to $40,000 by 2025.
- The average tow truck company owner’s salary is expected to increase to $75,000 by 2025.
As the towing industry becomes more competitive, businesses will look for ways to differentiate themselves. This could include investing in new technology, expanding services to include things like battery jumps and flat tire changes, or partnering with other businesses to offer discounts.
The use of technology is expected to increase in the towing industry. Some technology that is being used or developed for towing businesses includes:
- GPS to track vehicles and drivers
- Automated dispatching
- Online payments
- Vehicle storage management software
The towing industry will become increasingly regulated. The Federal Motor Carrier Safety Administration has put in place new rules and regulations in recent years. These regulations are designed to improve the safety of towing operations.
The towing industry is forecast to grow at a rate of 3.5% in the next five years. This growth will be driven by the continued development of new technologies and the increasing regulatory environment.
As a towing entrepreneur, it is important to be aware of these towing industry statistics and future trends to make well-informed decisions about your business. Stay ahead of the competition by keeping up to date with the latest towing industry news and developments.