The U.S. parking industry is a vital part of the nation’s infrastructure in moving services, goods, and people throughout the economy. Parking supports over one million jobs across public, private professionals and industry suppliers. The COVID-19 pandemic continues to wreak havoc on industries across the globe, and the parking industry has been devastated by a collapse in demand.
The highly contagious virus has forced virtual shutdowns of businesses, school campuses, airports, stadiums, etc. and these closures have had massive effects on parking and mobility. The industry has considerable exposure to the transportation, hospitality, air travel, and entertainment industries, which have all been dramatically impacted. According to data released by Smarking, parking volumes through November 17, 2020 were down over 60% from the prior year period. Some estimates suggest job losses and furloughs of 50%-60% of the industry’s workforce, with many being front line hourly workers.
As the efforts to flatten the curve continue, many states and cities re-implemented lockdown measures in November due to rising COVID-19 case counts, especially larger markets with a historically large proportion of parking revenues (e.g., California, New York, Illinois). We are likely to see continued restrictions on crowd size, events, workplace limits, capacity of indoor spaces, etc. To restore consumer confidence, parking and modes of transportation will need to reduce friction-points, address overcrowding, and maintain robust health and safety standards. Industry operators seeking to be well-positioned for success post-pandemic should consider the increased utilization of technology and touch free/contactless revenue control systems.
The Spartan Group has dozens of clients and partners in the parking management industry, and has completed several transactions in recent years. If you are interested in pursuing strategic alternatives or require alternative financing, please contact John Johnson, Managing Director, at (626) 204-6380 or firstname.lastname@example.org.