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Looking into the growing car washing industry in Central Arkansas

When driving around Central Arkansas, you've probably noticed all of the new car washes. We took a deeper dive to see why the industry has been growing so rapidly.

LITTLE ROCK, Ark. — When you drive around Central Arkansas, you've probably noticed all of the new car washes that have popped, but how many car washes does one area really need?

As it turns out, car washes are a 31-billion-dollar industry that's expected to continue growing.

However, local car washes have been trying to make the whole experience less of a chore.

"It's fast. It's convenient. And it takes stress out of your day," Splash CEO and Owner Paul Stagg said.

That's what Splash Car Wash aims to do when drivers enter the gate.

 Stagg said the locally owned business has been thriving and so has the car wash industry in general.

"It wouldn't be happening without the subscription model. Car washing today is like Netflix for your car. Okay, and that works, because it's a win-win for the carwash owner and the consumer," Stagg explained.

He said his new location on Chenal Parkway in West Little Rock is the largest car wash in the region. However, as these businesses grow, the same can't always be said for the amount of workers they employ.

"One of the things that [are] attractive for the investors that are building all these car washes is low labor that can run a car wash with a couple of employees at a time. Whereas one like this, we may have 15 people, that's harder. But we've been doing it 30 years, so we know how to do it," Stagg described,

U A Little Rock Economist Michael Pakko said that's a big reason why car washes are attractive to business owners and entrepreneurs. 

"It's all machine-driven, conveyor, very low cost to low labor costs. And profitability may vary depending on the market, but it's said to be a very high margin business that there's not a whole lot of expenses and it provides a source of income for an otherwise vacant commercial property," Pakko said.

"We love improving the city with new developments and new businesses," Genesis Owner, John Aaron Rees said.

Rees plans to expand in Central Arkansas and pointed out another reason that we've been seeing this business boom.

"I think the industry as a whole has really caught on and mainly private equity. Private equity money has gotten into the system because I've seen how well they've been doing. And so I think that is a big driver of the industry," Rees said.

That might leave you wondering 'When are there too many car washes for one area?'

Well, Pakko credits something we've already mentioned that has been helping fuel all of it.

"It used to be the case that a rainy day would have come along and no one would get their car washed. And that was a bad day for the carwash owner. Now with monthly subscriptions, the customer can go in as many times as they want per month and get their car washed. It's a very low-cost operation. And that just keeps the cars moving through," Pakko described.

Much like paying for your favorite streaming services, those monthly subscriptions are now key for many car washes. Pakko said we shouldn't expect this expansion to slow down.

"I found one forecast from a consulting firm that suggested that rapid growth is expected to continue at least through 2028," Pakko added.

"It wasn't long ago that half of all car washing was done in the driveway. Today, that's not the case, it's about 20% or less is done in the driveway," Stagg explained.

So as car wash businesses continue to pop up, owners like Stagg and Rees will continue doing what they can to differentiate while also providing the best experience for their customers. 

"It's a big light show in there and we turn off the overhead lights and put on the LED strobe lights and whatnot to kind of make it fun and to put on a show," Rees said.

According to Grand View Research, more than 72 percent of drivers in the US use professional car wash services regularly.

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