Urban Science’s 2014 mid-year Automotive Franchise Activity Report was released Thursday, revealing expectations of an all-time record-setting year for dealers by the end of 2014.

The report, which estimates that the average number of sales per dealership, based on LMC Automotive’s forecast of 16.2 million vehicles sold by the end of the year, foreshadows a throughput of 904 units. Achieving such a record would be a third-straight year of setting a national throughput record, shattering last year’s record by more than 30 units per store.

John Frith, Urban Science’s vice president, urges dealers to exercise caution when contemplating a potential expansion with the current flow of sales, with an inevitable ebb to come.

“Manufacturers and dealers continue to strike the delicate balance between meeting market demands and achieving profitability levels that have allowed the industry to rebound and thrive,” Frith said. “We know that automobile sales patterns are cyclical; it’s vital to remember current sales levels are near the peak of this cycle and will drop before growing again.

“Planning for the downturn will help dealers avoid financial problems in the future,” Frith continued. “As dealerships approach throughput of 1,000 units in the short term, manufacturers may be tempted to add rooftops to alleviate some of the pressure.”

The report reflects, as of July, a 0.4-percent increase in the number of dealerships in the U.S. since the end of 2013, migrating from 17,838 to 17,903. The first half of this year also brought about a 0.2 percent increase in the number of franchises, jumping from 31,440 to 31,489.

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