Today's new cars are safer, more reliable, longer lasting and more technologically advanced than any that have come before. While that is good news for the nation's driving public, what does it mean for the thousands of small business owners many of them franchisees who have been making their living in the automotive aftermarket?

Contrary to what you might think, the rising quality of both domestic and imported automobiles has not resulted in tougher times for the aftermarket car care industry. In fact, the motor vehicle aftermarket industry remains one of the largest employers in the United States, contributing 2.5% of the nation's gross domestic product, according to the Car Care Council (CCC).

The Car Care Council is a consumer outreach and marketing group created by the Automotive Aftermarket Industry Association (AAIA). For the past 30 years, the CCC has promoted such programs as National Car Care Month. It has recently been incorporated into "Be Car Care Aware,"anew campaign led by the AAIA.

The new campaign retains the Car Care Council brand, which will allow it to build upon the recognition and credibility the CCC name has developed among consumers and the media.

The automotive aftermarket is a vast and diversified industry, generating some $248 billion in annual sales, according to the AAIA. Despite the industry's large size, car care businesses continue to grow at a faster rate than the overall economy, and forward looking indicators suggest there is plenty of room for additional growth in the future.

A key driver of that growth is the massive amount of vehicle maintenance that goes unperformed each year, about $60 billion worth. Another is the increasing number of miles driven by an ever growing vehicle population.

Even taking the existing untapped market potential into account, the automotive aftermarket grew by 4.8 % in 2001. It all adds up to tremendous opportunities for new businesses in the automotive aftermarket, and many of the best ones are to be found in franchising.

Some segments of the automotive industry where franchises play a leading role include transmission repair, body repair and painting, tune ups, quick oil change, tires, brakes, exhaust systems, appearance care, and parts and accessories.

The overall motor vehicle aftermarket consists of five broad segments:

The first segment is by far the largest, accounting for almost $180 billion in annual sales. The automotive aftermarket includes do it yourself (D I Y) parts and accessories, which generated $29.1 billion in sales in 2001; D I Y lubricants and chemicals, $6.23 billion; service and repair, $122.9 billion; and tires, $20.6 billion.

Among the other broad segments of the U.S. motor vehicle aftermarket in 2001, heavy duty accounted for $60.9 billion in sales; paint and body equipment for $2.8 billion; tools and equipment for $7.4 billion; and trim for $5.3 billion.

Today's automotive aftermarket is an increasingly complex and competitive business that is undergoing profound change. Rapid industry consolidation over the past decade has left fewer market players. At the same time, advances in manufacturing have resulted in higher quality parts for new vehicles, cars break down less often and have longer service intervals.

All of that means the advantages franchising offers as a means of business ownership are particularly relevant in the automotive aftermarket industry. James A. Meaney, an experienced franchise lawyer and author of "How To Buy a Franchise," describes some of those advantages in his book. Chief among them are a defined and proven business format, specialization, a uniform system, an advertising network, name identification, training, a franchisee network, and increased buying power and technology capabilities.

Franchising companies and their franchisees account for about $1 trillion in annual U.S. retail sales. There are some 320,000 franchised small businesses in 75 industries, and a new franchise outlet opens somewhere in the U.S. every eight minutes, according to research compiled by the International Franchise Association (IFA). Given the important role franchising plays in the automotive aftermarket industry, its growth and its popularity as a means of business ownership, it is worth taking a closer look at the advantages Meaney details in his book.

A defined and proven business system. This is a key component of what most franchisors are selling, and it generally refers to a method of operation. The franchise systems that have risen to the top of their industries are those that have developed a proven, recognizable format that is easily duplicated by franchisees. A defined format is largely responsible for creating the positive public image and identification most successful franchises enjoy.

Specialization. Franchises cater to the specialized needs that characterize today's consumer economy. "Many American consumers no longer want a muffler installed by a service station," is how Meaney puts it. "Specialists, it seems, do it better." He adds that the ongoing trend towards specialization will keep franchising at the forefront of business distribution methods.

Uniform system. Even though most are highly specialized, automotive franchises thrive because they offer consumers a dependable source of high quality products and services in an efficient and cost effective manner. What makes that possible is a uniform system of operation that brings with it the advantages of mass purchasing power, brand identification and customer loyalty.

Advertising network. Collective advertising funds and cooperatives give franchisees who would otherwise only be able to afford local advertising the size and strength needed to do expensive national and regional advertising. Franchisees benefit from the high-quality creative talent and resources the parent company is able to tap. Good franchise advertising plays a vital role in developing brand recognition and building customer loyalty.

Name identification. Being identified with the franchisor's name is an important benefit to franchisees. Name recognition is one of franchising's intangible benefits that becomes more valuable as it increases over time. Being able to align themselves with the franchisor's accumulated brand equity gives franchisees instant integrity and recognition.

Training. Since reproducing the franchisor's format is critical to the success of the entire network, many franchisors have strict training requirements. That training allows franchisees to successfully offer the same quality service or product in a uniform manner, regardless of their previous experience or lack of it.

Franchisee network. A network of existing franchisees represents a knowledge base unlike anything else in the business world. With dozens, hundreds or thousands of individual business owners facing the same set of challenges, the array of creative solutions they come up with can be nearly limitless. Once mostly an informal support system, the franchisee network is increasingly being recognized by franchisors as the valuable strategic resource it really is.

Increased buying power and technology capabilities. Many franchise systems include cooperative buying organizations sponsored by the franchisor or a group of franchisees. Often, they are able to negotiate volume discounts and specialized services from vendors that individual franchisees would not be able to command on their own.

The same principle applies to the technology infrastructure that has developed into a de facto requirement for most businesses today. The combined clout of franchisor and franchisees puts more technological prowess within the reach of all participants in the franchise system.

While automotive franchises are benefiting from the same positive trends propelling franchising overall, growth in that sector is also getting a boost from other sources. Two important ones are the increasingly attractive value equation behind automotive repair services and robust growth in the light truck segment of the aftermarket.

Compared with other services, auto repair is a real bargain, according to the CCC. Over the past decade, the cost of hospital services has risen more than 100%, and the cost of financial services has jumped 90%. Automotive maintenance and repair costs, in contrast, have risen just 44.5%, making auto repair the darling of the service industry, CCC says.

Automotive parts represent an even greater value equation for consumers, having risen in price just 4.2% over the past 10 years, according to the percentage changes tracked in the Consumer Price Index from 1990 to 2001. That has helped to keep the D-I-Y market vibrant. Almost half of all U.S. households include at least one automotive D-I-Y enthusiast.

"Whether it's an oil change, replacing brakes or new belts and hoes, that periodic repair bill is a drop in the bucket compared to monthly payments on a new car," says Rich White, spokesman for the CCC. "The bottom line is that a properly maintained vehicle is safer, more dependable, cleaner and more valuable."

Many consumers today are trying to increase the return on investment they reap from automobile ownership by keeping their cars through what the automotive industry calls the "Cinderella era," White says. "It's that period of time after the loan is paid off when your car is still in great shape and needs only modest repairs."

Figures from Runzheimer International, a management consulting firm that measures travel and living costs, confirm the CCC's claims. Recent figures from a Runzheimer study show that trading in a vehicle every eight years instead of every four years can save more than $2,480 a year after the loan is paid off. That figure includes repairs, maintenance, license, registration, taxes and insurance.

The good news for existing and prospective franchisees in the light truck segment of the automotive aftermarket is that it has almost doubled over the past 10 years. Sales in the light truck aftermarket have climbed from less than $39 billion a year in 1993 to more than $74 billion a year in 2002, according to "The U.S. Light Truck Aftermarket: The Impact of Growing Pickup, SUV and Minivan Sales," a new report from ARIA.

According to the study, sales in the light truck aftermarket experienced a 7.4% increase from 2001 to 2002, growing from $69 billion to $74.1 billion. The study forecasts the size of the 2003 light truck aftermarket as $79:9 billion, an estimated 7.8 % increase over 2002.

The study estimates the size of the light truck aftermarket based on several factors, including business receipts, vehicle sales, automotive product prices, vehicle registrations and component maintenance and repair replacement rates. With the number of car buyers who choose a pickup, minivan or SUV over a conventional automobile continuing to grow, the outlook for this segment of the automotive aftermarket is quite upbeat.

Like most industries inside and outside of franchising the automotive aftermarket faces some challenges. One is the increasing technological sophistication of today's cars and trucks and the resources needed to repair and maintain them.

Because so much of the technology is computer based, industry groups argue that car manufacturers, which control access to the diagnostic codes for that computer technology, enjoy an unfair competitive advantage over franchised and independent repair shops. Two aftermarket industry organizations are fighting to change that.

The AAIA is teaming up with the Automotive Warehouse Distributors Association (AWDA) to support passage of legislation called the Motor Vehicle Owners' Right To Repair Act.

"AAIA and AWDA believe that it is critical that independents have cost effective access to this information, and both associations are concerned that the proprietary method used by the dealer might not be affordable or workable for the small businesses in the service industry," says Aaron Lowe, vice president for the Automotive Parts and Service Alliance, the group formed by AAIA and AWDA.

Another challenge facing the automotive aftermarket industry is one shared by franchise businesses in many other sectors: the difficulty of finding, hiring and retaining qualified employees. The challenge exists in finding both skilled workers such as mechanics and technicians and unskilled workers such as store clerks.

Currently, the auto industry is looking for 60,000 automotive technicians nationwide, according to the National Automobile Dealers Association. Franchised and independent repair shops have to compete with new car dealers for the same pool of qualified workers.

The situation is similar in other segments of the automotive aftermarket business. Auto parts stores, for example, must compete with other types of retailers for store clerks, cashiers and delivery drivers. Car washes and quick Tube centers are targeting the same labor as other service businesses.

One offshoot of the labor situation is that wages are rising for workers in the automotive aftermarket industry. The average hourly wage for non supervisory' employees in all sectors of the industry increased between 2000 and 2001, with the largest increases being seen for workers in auto parts supply stores and automotive repair shops, according to AAIA research.