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Meet “the Marble family.” Mrs. Marble drives a two-year-old BMW, which she takes to the dealership for all maintenance and repairs. Since the pandemic hit, she’s been working from home entirely, saving her vehicle from the wear and tear of a 30-mile daily commute.

Traditionally, Mrs. Marble hasn’t supported the independent automotive aftermarket at all. But, she picked up a new hobby during the pandemic: car detailing. And her husband, who drives a 10-year-old Ford F-150, has decided not to purchase a new truck due to inventory shortages and skyrocketing prices on the showroom floor. Instead, Mr. Marble has been tackling delayed maintenance needs such as new brakes and a coolant flush. On top of that, the Marble family bought a new camper, which they’ve taken on 20 road trips since the pandemic started.

Then there’s “Hailey.” Although she’s been working from home and driving less during the pandemic, the extra time at home inspired her to restore her 1966 Mustang that’s been sitting in the garage. Meanwhile, “Charles,” who lives in New York City (and previously didn’t own a vehicle), bought a car during the pandemic, because he can’t stand the prospect of using mass transit due to fears of being exposed to COVID.

Nathan Shipley, executive director, industry analyst, for The NPD Group, used these fictional but “very real” examples to show how the pandemic has spurred major changes in consumer behavior – many of which have benefited the automotive aftermarket in a big way. During a presentation at AAPEX 2021 in Las Vegas, Shipley shared NPD Group data showing that the automotive aftermarket gained nearly 4 million new retail buyers in 2020.

“That’s a big number,” Shipley said. “Those are folks who had not bought anything on the DIY side of the aftermarket prior to 2020, and all of a sudden magically appeared and were engaged with us as an industry.”

Looking back, the whys behind the boom in DIY sales have become crystal clear: more time at home; a windfall of discretionary cash from stimulus checks, child-tax credits and (for some) extended unemployment benefits; an aversion to airplanes and public transportation; and cabin fever, which drove sales of RVs and boats to record levels.

As Shipley discussed The NPD Group’s 2022 outlook for front-room retail sales in the automotive aftermarket, he noted a number of “mixed signals” on the horizon. On the positive side, the job market remains strong in the aftermath of the 2020 recession; COVID-inspired activities such as camping, boating and road trips are showing no signs of slowing down; and the new- and used-car marketplace is pushing consumers to keep their older vehicles on the road longer than planned.

“There are more cars on the road now than ever,” Shipley added. “Scrappage rates are down. VIO is up. The average [vehicle] age is trending older because of what’s happening with new cars. Those are all nice tailwinds for the aftermarket.”

However, there are a number of pandemic-era tailwinds that could become headwinds for the aftermarket in 2022 – notably the absence of stimulus payments and the expiration of the eviction moratorium, expanded unemployment benefits and student-loan forbearance. Shipley believes that many consumers likely will be surprised by a smaller-than-usual tax refund, because “they just don’t understand the mechanics” of the child-tax-credit payments that showed up in consumers’ bank accounts in 2021.

And, while Shipley said he expects miles driven to return to 2019 levels this year, rising gasoline prices remain the ultimate wild card. At press time (Jan. 7), the average price of gasoline was $3.303 per gallon nationwide, according to AAA.

“We can go back years … and there’s a direct correlation between gasoline prices and miles driven, notably when we get to gasoline-price thresholds of $3.50 a gallon, $4 a gallon,” Shipley added. “That’s when we start to really see – at least historically – major behavior changes as it relates to driving. So this has crept back into the conversation.”

NPD’s data modeling for 2022 calls for U.S. aftermarket retail sales to pull back 5.7% from 2021 – a year in which sales were up nearly 8% compared to 2020. However, the 2022 forecast anticipates that aftermarket retail sales will be 8.5% higher this year than they were in 2019.

“This is a bullish forecast,” Shipley said. “This is suggesting that 2021 was the peak, and things are going to keep trucking right along,” assuming there are no new sales-triggering events such as additional stimulus packages. 

He added: “I think the big takeaway is that the fundamentals of this industry are very, very strong. We should feel very, very good about where we’re at as an industry. But, overall, we expect things to settle in just below where they were in 2021.”

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