Why Car Parking Is A Struggling Industry In The U.S.

Only 10 percent of the parking in the United States is paid parking, but the industry that runs it rakes in billions. For decades, it has been a largely stable, growing industry. Historically it has been dominated by small and family businesses, but now two players are publicly traded companies such as SP Plus (SP+) and ABM. However, the industry is facing some challenges. Low barriers to entry make it a crowded, fragmented industry. Competition is fierce. It has also suffered from the blows e-commerce has dealt brick and mortar retail, and the rise of ride-hailing. And now a post pandemic world where workers are rarely driving into urban areas. On top of it all, demand is declining in some markets. Parking garages have had to adapt, invest and prepare for a future where fewer people may drive or own cars. But that takes capital, and is risky. It remains to be seen how the industry fares as it expands and pivots to stay relevant. Chapters: 00:00 — Introduction 01:33 — The parking industry 05:30 — SP Plus 09:28 — The future Producer: Robert Ferris Editor: Nic Golden Henry, Darren Geeter Senior Managing Producer: Tala Hadavi Graphics: Jason Reginato, Christina Locopo Additional sources: Sidoti & Company