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| (From left) Marco Mattioli, president of Federlavaggi; Eric Wulf, executive director of the International Carwash Association; and Gian Luca Meschi, vice president of Federlavaggi. |
While primarily composed of North American operators and suppliers, the International Carwash Association has long sought and maintained relationships with the carwash industry beyond our shores. Our goal in these endeavors is to facilitate the exchange of ideas and information that can make our members and industry more successful.
North American suppliers are selling more equipment overseas, and operators are increasingly sourcing supplies and ideas internationally. This trend is likely to accelerate, which makes it incumbent upon us to be involved in outreach and information exchange around the world.
For example, there is a well-organized carwash association in Australia that we have worked with over the years on matters of mutual interest, such as water use. We also have been in contact with the new association of carwash suppliers in the United Kingdom. In addition, we continue to benefit from a strong relationship with the Canadian Car Wash Association, with whom we share many common members.
Most recently, I had the opportunity in May to represent the ICA in a trade delegation created and sponsored by the Italian Trade Commission. I was invited to attend Autopromotec in Bologna, Italy, along with the chief executive officers of other U.S.-based, automotive-related organizations such as the Tire Industry Association and the Automotive Aftermarket Industry Association.
Autopromotec is a biennial event that is one of the largest automotive trade shows in Europe. It features a carwash component second only to Automechanika, which is held on the alternate biennial schedule in Frankfurt, Germany. In addition to meeting with carwash suppliers and operators from across Europe, an important component of my trip was the signing of a letter of agreement with Federlavaggi, the Italian association of carwash manufacturers.
Our agreement with Federlavaggi represents our ongoing commitment to being the source for information and knowledge about the professional carwash industry. In the months and years to come, our associations will explore and experiment with formal and informal opportunities for networking, education, information exchange and buyer-seller marketing.
During my five days in Italy and through the course of my conversations with European suppliers and operators, several things stood out as interesting for the North American carwash industry. I share these with you not because they are the only version of what may be occurring internationally, but more so to stimulate thinking about markets and trends that will increasingly impact the industry on this continent.
Environmental Certification and/or Standards Setting
Contrary to most of the developments in the United States, the environmental movement in Europe has been driven more by government than consumers. While European consumers are increasingly demanding environmentally conscious products and services, European carwash suppliers are still very focused on ways in which they can shape government and European Union policy in environmental areas that can affect the carwash industry. This seems to be particularly true in the areas of chemistry and water use. There is much talk about a European standard for “green” carwash chemistry and setting minimum standards for water recycling equipment.
Competition from Low-Cost Manufacturing Nations
While most of the installed carwash equipment in North America and Europe is manufactured from those continents, several European carwash suppliers are concerned about the possibility of low-cost equipment and parts “flooding” their marketplace from abroad.
Given the state of the economy, China’s strong cash position and production abilities, for example, have caused some apprehension about how Chinese interests could affect European manufacturing. One of the strengths European manufacturers have over potential external entrants, however, is their distribution and service network, which is more difficult to engineer and perfect from afar than a piece of equipment.
Changing Operator Profile
European carwash operations traditionally have been dominated by oil companies, since most carwashes are purchased at petrol stations. While the “independent” retail carwash model is still a relatively small part of the European market, it is growing — particularly in Eastern Europe and Russia. Just as technology improvements have allowed North American operators to wash more cars with fewer employees, this evolution is enabling Europeans to develop sites that are primarily focused on the business of carwashing.
Two other observations from my trip may sound prideful, but I believe this feeling is justified. European suppliers and operators are amazed with North American carwashing in two ways: our marketing prowess and our professionalism. Those who have traveled Europe know that the North American “super sites” profiled in our industry’s trade publications are rare in Europe. Most carwash operators there have not developed the sophistication we see here in the areas of promotion, pricing and product offerings.
Part of the reason for that is because carwashing is not as well recognized as a profession in Europe as it is in the United States. Again, because carwashing has most commonly been an ancillary profit center there, few Europeans would declare themselves to be a “professional carwasher.”
I left Autopromotec with eyes reopened to the incredible depth and breadth of the global carwash industry. In our increasingly shrinking and codependent world, it is more important than ever that the ICA lead in developing relationships and sharing information across borders to benefit our members and grow our industry.
At the same time, I left with renewed pride in the rugged determination, innovation and hard-won success of carwashers (suppliers and operators) in North America. In an increasingly competitive world, I’ll continue to bet on our carwash industry as one that can and will learn, evolve and thrive.
Eric Wulf is executive director and CEO of the International Carwash Association. During his tenure, he has been instrumental in the ICA’s creation of new programs to deliver knowledge and best practices to the professional carwash industry. Eric can be reached at ewulf@carwash.org. For more information, visit www.carwash.org.