Driving School Growth

Over the last few months, as the recession has lifted driving schools have moved from strength to strength, with many expanding their business and taking on new instructors, or moving into the automatic market.

The years 2008 to 2013 were predicted to be low income years for ADI's with 2014 to 2017 showing a predicted growth pattern, which includes more young learners, who only account for 65% of the trend, more foreign licence holders taking a test after one year in the UK, refresher lessons amongst the older driver sector has increased since the DVSA called in more drivers who are on specific medication, have a particular disability or illness or have been referred by the Police.

Typically in the period of recession instructors find themselves seeking alternative employment or joining a franchise, but when the economy is slow there is no magic cure. The current figures for provisional licence holders across the 15 to 20 age group is 587,212, with less than half of these taking lessons. 21 to 25 year old's hold 557,975 provisional licences, taking the younger age groups over the one million bracket. It is estimated that one third of green badge holders have no learners, are retired, work abroad or in the corporate market. So generally speaking the recession at it's worse was harsher than many anticipated.

With the current boon expected to carry us into the next couple of years the anticipated entry into the register will see a rise, as figures have been low for sometime this can only help not hinder economic growth.  With a general election in just a couple of months, the future of the driving instruction industry as we know it has the potential for all change depending on who comes into power.

The growth of learners has been seen across France, Sweden, Belgium, Spain and Germany, where learning to drive is far more expensive than the UK. In previous years it was known for other EU residents to take a driving test in the UK then take it back to their country to exchange, there is no reason for this not to continue.

The next down turn is estimated to be 2019.

Can driving schools with rapid growth sustain their income stream, in the current climate it is viable, but it is also hard work.  The last twenty years of study show that a small school which expands is likely to lose their instructors to sole trading once they feel comfortable in the structure of business, for some it can be a headache they wish they had avoided.

Manipulating the market is doable by all sole traders, without the need for cut price lessons, team work is vital in dual car schools and cooperatives tend to fare better than the old fashioned systems. Making sure you cover your costs is essential, being a nice person is great but not when you are up at night worrying about your instructors, filling their diaries and remaining friends. Upholding reputation is key for growth to continue.

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