BACKGROUND

International Carwash Association has been periodically engaged in non-North American markets since at least the 1960s. At one time, ICA facilitated “management seminars” that allowed operators to visit foreign car wash markets. But, despite that history, the process that led to the launch of the Car Wash Show Europe only began in 2009. That year, the Italian Trade Commission invited ICA to participate in a trade delegation trip to Autopromotec, a biennial aftermarket automotive trade fair in Bologna, Italy. Beginning at that event, and then at other European industry gatherings, ICA’s staff and board members began to interact with European car wash association representatives and operator and supplier leaders.

What began as simple network development began expanding in 2012 as the ICA board of directors and staff began more formal work to understand the European car wash market and solicit input from North American and European car wash organizations. In the second half of 2012, ICA hired an independent consultant to evaluate what, if any, opportunities there may be in Europe. The evaluation was not limited to trade shows, but all ways in which ICA could provide value to the European car wash market.

THE EVOLVING EUROPEAN CAR WASH MARKET

ICA’s evaluation of the European market began with seeking to understand its core characteristics. From a total market size, the number of car washes in the United States and Canada is very similar to Europe, at approximately 90,000 and 80,000 respectively. (For the purposes of this article, Europe is defined as the 28 European Union member states plus Norway and Switzerland.) But, the markets are very different when one looks at the ownership and business focus of those locations.

Roughly two-thirds of the North American market is dominated by retail car wash locations (where car wash is the primary purchase option, as opposed to gasoline or grocery stores). The opposite is the case in Europe, with most car washes being located at petroleum retailing sites.

These characteristics have remained fairly consistent over most of the past 25 years.

Because the market has been dominated by large, multi-national petroleum organizations, there has not been much demand for the types of products and services traditionally offered by International Carwash Association in North America (i.e. education, research and trade shows). This is perhaps why there is not a European car wash association, and only car wash associations in a handful of European countries.

But, particularly over the past 10 years, underneath those high-level statistics the European market has been undergoing change. Specifically, Europe is becoming more of a retail car wash market — with more entrepreneur or SME (small- to medium-sized enterprises) becoming active in the car wash business.

“The market in the Netherlands 20 years ago wasn’t that developed,” said Mark De Graaf, owner of Bob Autowas. “It was a lot of inbays and jet washes. But in the last 10-15 years we have picked up more tunnels and have more stand alone car washes.”

This is the case in both mature markets, like Germany and the Netherlands, but also in the newer democratic countries like Poland and the Czech Republic.

Even in the petroleum retailing segment, the number of new sites being built has slowed considerably. In fact in Germany, the major petroleum companies are restricted from opening additional locations due to competition regulations, meaning more of the growth is coming from regional or local petroleum retaining companies.

CHANGES IN THE EUROPEAN TRADESHOW INDUSTRY

Another part of ICA’s evaluation involved looking at the European tradeshow environment. This too, it was shown, has begun undergoing change. The two major exhibitions for the car wash sector in Europe have been Automechanika (held in odd-numbered years in Frankfurt, Germany) and Autopromotec (held in even-numbered years in Bologna, Italy). There are also a handful of other shows with car wash segments, such as in Paris, Salzburg and Münster. The largest event, by far, is Automechanika. The five-day exhibition covers more than 2 million square feet of exhibit space. (The Car Wash Show 2014 covered 118,000 square feet.)

“Car wash has always been a part of a bigger show,” said Lex Peters, who owns ANAC car washes and operates 14 washes in Belgium and the Netherlands. “I think it will be good to have something focused on car wash. The most important thing is to bring all the professionals in car wash together.”

In 2014, a German association of petroleum retailers announced the launch of a new trade fair in Stuttgart. This event, held just three months before the Automechanika show in Frankfurt, is more tightly focused on petroleum retailing topics, therefore similar in some ways to the NACS Show in North America. Whereas one might have expected this to be impossible given its proximity to Frankfurt and its timing, this new upstart has gained significant traction. The preliminary conclusion from this development is that there can be value in tightly focusing on specific types of businesses or products, as opposed to trying to put everything related to automobiles into one event. Interviews and conversations with car wash suppliers and operators have supported this assumption.

MARKET ANALYSIS RESULTS

ICA’s analysis was not merely focused on the tradeshow component of the car wash industry. Rather, it included evaluation of opportunities for other traditional association products, such as research, educational seminars and publications. But, the results of the analysis clearly pointed toward one unique area of opportunity, and one that ICA could uniquely provide for the industry: a pan-European and singularly-focused car wash convention and exhibition. Further, it was noted that such an event could eventually become a mechanism for providing other resources and opportunities for the car wash industry, as The Car Wash Show has provided for car wash professionals in North America.

“The majority of operators are one to two car washes,” Peters said. “The need for equipment and the need for education is changing in the European market.”

THE CAR WASH SHOW EUROPE CONCEPT

Based on analysis, conversations, and face-to-face visits to car wash suppliers and operators in Europe and North America, the concept of a European car wash event began to take shape in 2013. Three specific attributes quickly became the focus of the concept’s development:

#1 – The only car wash focused event.

While there are other events with a car wash component in Europe, there is not a car wash show. Car washing is a different business from automotive repair or petroleum retailing, and as such it deserves its own focused platform for learning, networking and product evaluation. Also, a car wash-focused event will be a much more efficient offering for car wash professionals, versus large automotive aftermarket events.

#2 – A Pan-European audience.

Most other events in Europe are highly identifiable with their home country, and owned and produced by strictly national organizations. International Carwash Association is uniquely not aligned with any one geographic market. Amsterdam quickly became an attractive location for the inaugural show due to its central location and truly European (international) culture.

#3 – Presented by the industry.

International Carwash Association is also uniquely positioned as a nonprofit organization, governed by the car wash industry itself (a board comprised only of car wash operators and suppliers). ICA’s only “shareholder” is the professional car wash industry — meaning that the profits from its endeavors are solely invested back into the industry.

WHY INTERNATIONAL CARWASH ASSOCIATION?

It would be logical to wonder why ICA should be the one launching this event. Even with members in more than 25 countries, the association’s primary activities have been limited to North America. But, through a look at history and current practice, it is evident that an expansion of International Carwash Association’s work to include Europe makes sense for the industry and for ICA’s members.

“The benefit of a show is not only meeting the people that you already know. It is the chance of getting new ideas, new inspirations, new contacts,” said Richard Enning, CEO of Mr. Wash Autoservice AG based in Germany. “And for this we need a platform in Europe where even the smaller suppliers can present themselves. Sharing ideas, concepts and products is essential for any development. So the Car Wash Show Europe is a big chance for the whole industry.”

The organization that became International Carwash Association was founded in 1955 at a meeting of car wash operators in Mexico City. In the first solicitations for membership that came from that meeting, the newly formed “Automatic Car Wash Association – International” shared the following description of its purpose:

The founders of the Association likely couldn’t have envisioned The Car Wash Show as we know it today, let alone a new European sibling. But, what is evident from the founding of ACWA-International, and the evolution of International Carwash Association since, is the organization’s commitment to being the “big tent” of the car wash industry. Other organizations were founded to support a particular type of car wash type, or a particular geography or operators before vendors. But one of the things that has made International Carwash Association uniquely successful has been its holistic focus on the car wash industry in the broadest of terms.

Today, more than 70 percent of the Association’s vendor members sell their products and services internationally — while ICA’s work has only been focused on 5 percent of the world’s population. Now, through the Car Wash Show Europe, the industry has a new platform for exchanging information, networking with peers, engaging in commerce and building a truly global perspective on what remains an exciting and growing industry.

WHAT DOES THIS MEAN FOR YOU?

One of the things that associations do better than almost any other type of organization is facilitate the exchange of ideas. At the end of the day, that’s the core offering — whether it is delivered through a trade fair, car wash tour, magazine or educational seminar. It is in this respect that the Car Wash Show Europe is perhaps most exciting for ICA’s members — even if they never attend. A recent example illustrates this perfectly.

In 2002, Ben Alford opened the first of what would soon become known as an “express exterior car wash” in Baton Rouge, La. The former ICA president was a long-time car wash operator, whose father opened the first automated car wash in Louisiana in 1951. This new style conveyor car wash featured automated gates, an automated teller machine and free vacuums — and it was a near instant success.

It was Alford’s focus, determination, innovation and hard work that made the new car wash so successful, but he will also tell you that not every idea for the concept was his own. In fact, it was while on a tour of German car washes, through one of the management seminars organized by International Carwash Association, that he first visited a high-volume car wash with free vacuums. The idea of combining free vacuums into the car wash offering became recognized as one of the essential ingredients of the express exterior model.

Today, more express exterior car washes are opened in the United States than any other type of conveyor model. In the 12 years since its birth, the express exterior concept truly revolutionized the car wash market. An idea, even by itself, can be powerful — but one that is shared can be truly transformative.

Q&A with GARY DENNIS

ICA’s president shares answers to some questions you may have about the Car Wash Show Europe.

Q: Is the Car Wash Show Europe solely for Europeans?

A: Our trade shows have never been solely for any one type of person; they have always been focused on the market. So, an American visiting Amsterdam next year will see products that are available in the European market and seminars that are of interest to European car wash operators. But, many of those products may also available in the United States or even manufactured here. And, perhaps most importantly, many of the ideas you’ll find in Amsterdam have potential application for your car wash — no matter where you live.

Q: Does this endeavor create a distraction from what ICA could be focused on in North America?

A: That’s a reasonable question and one that we’ve considered quite carefully. We believe we’ve made considerable progress over the past handful of years in launching new products that are delivering real value to car wash operators and suppliers, and we certainly don’t want to take our foot off that gas pedal. So, one of the ways we are guarding against that from happening is hiring a European show management company that will be responsible for the marketing, sales and execution of the show — allowing our U.S. staff to remain focused on our core offerings.

At the same time, resource allocation, market development and innovation are challenges that every business faces. That doesn’t mean that the solutions are easy, but it also doesn’t mean that you can simply sit back and choose to not evolve. If we are going to remain relevant for today and tomorrow’s car wash community, we must be constantly advancing.

Q: How was this decision made, and how was input received?

A: I’ve been on the board of directors since 2010, and I can tell you this is the most deliberate evaluation I’ve ever seen us undertake. Our general counsel has been with the association since the early 1990s and he has stated the same. In other words, the decision wasn’t made lightly. We’ve used quantitative and qualitative analyses, reports from staff, board and outside consultants, and we’ve solicited comments from operators and suppliers in North America and Europe.

Particularly in an industry as diverse as ours, you’re never going to have 100 percent agreement on an issue, and rarely will all data point definitively in one direction. But, our decision was not made with a lack of information. We are cautiously optimistic that this is a special opportunity, not just for ICA but also for car wash professionals on both continents.

Q: How will ICA interact with Europe’s national car wash associations (e.g. BTG in Germany and BOVAG or BETA in the Netherlands)?

A: We have gotten to know those organizations, and others in Europe, quite well. We value our relationships with them and have made it clear that we only seek to compliment what they are doing for members in their respective markets. It’s actually very similar to the situation the United States — ICA could never provide the type of networking or local advocacy that the Western Carwash Association provides in California, so we focus on broader issues and products. We believe this same cooperative and differentiated model can be replicated in Europe, and perhaps the Car Wash Show Europe can even become a platform that will help those associations grow — or for others to be formed where car wash associations do not exist today.

Q: What have you learned about the European car wash market in your travels, and what would you want North Americans to know about the Car Wash Show Europe?

A: I didn’t know what to expect when I first visited car washes in Europe, but I can tell you that I quickly learned that we’re not the only ones who know how to wash cars! There is a lot that we could learn: from the sheer production management prowess of high-volume German operators to the incredible marketing and attention to customer experience that is evident in the Netherlands.

Honestly, the thing that excites me most when I think about opening the doors at the Car Wash Show Europe is going to be the looks on the faces of the operators that attend. If you haven’t been to The Car Wash Show, or you haven’t been on a tour of Dutch car washes, or you haven’t heard seminars from leading business and car wash experts… you’re simply going to be amazed!