-
Welcome to Auto Parts Forum
Whether you are a veteran automotive parts guru or just someone looking for some quick auto parts advice, register today and start a new topic in our forum. Registration is free and you can even sign up with social network platforms such as Facebook, Twitter, Google, and LinkedIn.
AASA Vision: Best Of Times, Worst Of Times In The Aftermarket
-
Similar Topics
-
By Counterman
AAPEX 2022 is introducing a Student Sponsorship Program and Sponsor-a-Tech Program to help increase and retain the talent pool for the automotive aftermarket.
AAPEX will take place Tuesday, Nov. 1, through Thursday, Nov. 3, at The Venetian Expo in Las Vegas.
The Student Sponsorship Program aims to ultimately nourish the industry with young talent by introducing students to AAPEX and educating them on the benefits and career opportunities in the industry. In coordination with a select number of colleges, universities and industry organizations, AAPEX will identify students with plans to work in business, engineering and service and repair. Students will be invited to apply for the program and AAPEX co-owner associations – the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA) – will make the final selection. Students will be sponsored by an AAPEX exhibiting company and receive a complimentary package to attend and participate in this year’s event.
The Sponsor-a-Tech Program welcomes exhibiting companies and warehouse distributors to invite technicians to AAPEX. Technicians will receive a scholarship package to AAPEX to participate in hands-on training and live demos, visit the show floor to see new products and technologies, and attend keynote sessions and special networking events.
To learn more, contact Bill Glasgow, AAPEX Event Management, [email protected]
The post
link hidden, please login to view appeared first on link hidden, please login to view.
link hidden, please login to view -
By Counterman
The automotive aftermarket continues to demonstrate its market strength with higher-than-expected sales in 2021 in the wake of a slow economic recovery from the COVID-19 pandemic in the United States.
Total U.S. light duty automotive aftermarket sales are forecasted to increase 8.5% in 2022, totaling $356.5 billion, according to the 2022 Joint Channel Forecast Model produced jointly by the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA).
This data will be examined in a joint,
link hidden, please login to view led by Shane Norton of S&P Global Mobility at 1 p.m. EDT on June 9. An additional 5% growth is expected for 2023 and growth will average more than 3% in 2024, bringing the light-duty aftermarket to $401.5 billion by 2025, according to the forecast.
The compound average annual growth rate from 2019 to 2022 will be 5.7%, more than making up for losses seen in 2020 due to the pandemic.
“Year after year, the auto care industry continues to show its strength and reliability,” said Bill Hanvey, president and CEO of the Auto Care Association. “In the midst of the highest gas prices on record and an inflation rate at a 40-year high, coupled with persistent supply chain disruptions and war in Eastern Europe, vehicle miles driven, vehicles in operation and consumer spending all increased in 2021 and are projected to increase into the coming years as well.”
“The automotive aftermarket once again shows its resiliency with a stronger than expected recovery from the pandemic,” commented Paul McCarthy, president and CEO of AASA. “In fact, the automotive aftermarket rose nearly 25% in the past two years despite ongoing headwinds, and we are excited to see the landmark market size of $400 billion in 2025. But as the industry advances to that landmark number, look for a new challenge to emerge as we may shift from a market supported by high demand and availability to a battle for market share. With that, we’ll see one more strength of the aftermarket emerge, collaboration with the right partners to ensure the same pace of success in this next phase of industry dynamics.”
Key data in the joint channel forecast model include:
Market trends influencing the aftermarket A 2021-2025 review of industry growth and forecasts Industry sales by channel including history and forecasts Industry sales by distribution channel And more The market sizing and forecast are conducted on behalf of the Auto Care Association and AASA by S&P Global Mobility (formerly the automotive team at IHS Markit), a leading business intelligence firm. The forecast is based on the U.S. Census Bureau’s Economic Census; IMR Inc.; and proprietary data, economic analysis and forecasting models from S&P Global Mobility.
The Joint Channel Forecast Model is available in the Auto Care Association’s
link hidden, please login to view and in AASA’s link hidden, please login to view. The post
link hidden, please login to view appeared first on link hidden, please login to view.
link hidden, please login to view -
By Counterman
NTN, the parent company of BCA Bearings, has announced the addition of 12 new product SKUs to the BCA aftermarket product line.
BCA’s May 2022 release includes wheel-hub assemblies for import and domestic applications, and represents premium coverage for more than 3.4 million vehicles in operation, including four first-to-market offerings, according to the company.
“The SKUs included in our May release support our commitment to adding late model coverage and staying ahead of aftermarket demand.” said Rina Dafnis, assistant product manager – automotive aftermarket. “We are first-to-market with four of these 12 new SKUs, which gives BCA and our customer-base a competitive advantage in the aftermarket.”
These new SKUs enhance BCA’s coverage for popular Asian brands, including Nissan/Infiniti, Kia and Honda. On the domestic front, coverage for 1.35 million Chevy Equinox and GMC Terrain crossover SUVs arrives just as these vehicles begin to enter the aftermarket sweet spot for wheel-bearing replacement.
BCA Bearings by NTN is a trusted supplier of OE-quality parts to the automotive aftermarket, providing a constantly expanding full line of premium wheel hubs, bearing and seals for domestic and import applications. Complete product and catalog information for the BCA Bearings product line can be found at
link hidden, please login to view and link hidden, please login to view. The post
link hidden, please login to view appeared first on link hidden, please login to view.
link hidden, please login to view -
By Counterman
MAHLE Aftermarket Inc. recently unveiled a new microsite to provide automotive service shops with a resource to educate vehicle owners on the importance of having qualified technicians inspect and service their air-conditioning systems annually.
Consumers benefit from their air-conditioning systems functioning properly not only to enhance cabin comfort, but also to avoid damage that may be costly to repair. A well-maintained air-conditioning system also is critical to ensure the proper temperature range for drivetrain batteries in electric and hybrid cars.
In addition to a comprehensive checklist for proper A/C maintenance, service and installation, the MAHLE
link hidden, please login to view features a multitude of useful resources including articles, easy-to-follow tutorials and industry statistics, as well as background on some of the company’s latest solutions, including premium MAHLE cabin air filters and the MAHLE OzonePRO professional sanitation system. “Shop owners can direct consumers to the ‘A/C check’ microsite for information about yearly service of their air conditioning system from a qualified auto technician,” said Ted Hughes, director of marketing MAHLE Aftermarket North America. “The site was also created to provide vehicle owners with information about the design and operation of the automotive air conditioning system, why regular maintenance is necessary to ensure its reliability, and details on do-it-yourself inspection and service guidelines.”
The “A/C check” microsite also includes detailed information about some of the latest technologies from MAHLE, including the company’s expanded range of cabin air filters, as well as the MAHLE OzonePRO professional sanitation system. This innovative technology uses ozone gas to sterilize a vehicle’s interior and eliminate odors. In addition to its lightweight and automated operation that controls ozone levels and process time, it offers digital integration with mobile devices and report generation when the sanitation process is complete.
From a small test workshop to one of the top 20 automotive suppliers, MAHLE is proud to celebrate 100 years of delivering superior quality products around the world. For more information about MAHLE Aftermarket and its brands, visit
link hidden, please login to view, or contact your local sales representative. The post
link hidden, please login to view appeared first on link hidden, please login to view.
link hidden, please login to view -
By Counterman
Electric vehicles. E-commerce. Vehicle complexity. Consolidation. Autonomous Driving. Connectivity. How will these and other trends affect the automotive aftermarket over the next decade, and more importantly, how should aftermarket suppliers respond?
A new study – “The U.S. Automotive Aftermarket in 2035” – attempts to answer these questions, with aftermarket suppliers “facing more inflection points than we ever have before,” in the words of Automotive Aftermarket Suppliers Association (AASA) President and CEO Paul McCarthy.
“And the reality is we can’t handle them all,” McCarthy said at the 2022 AASA Vision Conference in Dearborn, Michigan. “So we need to understand which ones are really going to disrupt us and which ones may matter less. Because if there’s one thing we know, the aftermarket in 2035 is not going to look like the aftermarket today.”
Conducted by the management consulting firm
link hidden, please login to view, the study looks at the current and future states of the automotive aftermarket. One of the most alarming conclusions from the study is that aftermarket suppliers aren’t ready to deal with nine high-impact trends: BEV (battery-electric-vehicle) penetration; e-commerce and o2o (online-to-offline); consolidation; labor shortages; supply chain disruption; data access; autonomous driving; supply chain footprint; and sustainability. Barry Neal, senior partner at Roland Berger, and Neury Freitas, principal at Roland Berger, presented an overview of the study findings at the AASA Vision Conference. Here are some of the highlights.
Battery Electric Vehicles
How much and how soon will BEVs affect the independent aftermarket? That all depends on which part of the market you serve.
By 2035, the study projects that only 2% of 12-year-old vehicles and older will be electric, while 11% of 8- to 11-year-old vehicles will be electric. However, the impact of BEVs will be more pronounced in newer vehicles, with 32% of 0- to 3-year-old vehicles expected to be electric.
“The more you are dependent on the OES or OEM channel, the more or sooner EVs will actually impact your business,” Freitas explained.
At 100,000 miles, BEVs require 50% fewer service visits than internal-combustion vehicles, based on OEM service recommendations. By 200,000 miles, that gaps shrinks slightly to 47%.
“There clearly are services that will disappear in an EV,” Freitas said. “Anything that’s related to the engine, anything that’s related to combustion will go away.”
BEVs will need battery coolant, but due to regenerative braking, brake systems typically last longer on electric vehicles.
“The tire players are really happy,” Freitas added. “They are waiting for EVs, because either you have a heavier vehicle that needs a stronger structure of the tire, therefore they’re more expensive, or if you use a normal tire, that’s going to wear faster. So, that’s a positive.”
Online-to-Offline Business Model
The pandemic has accelerated the growth of o2o in the automotive aftermarket, as more consumers embraced buying parts and booking appointments via their mobile devices. The linkage between the offline and online worlds “brings a lot of benefits and a lot of convenience for consumers,” Freitas asserted.
The increased convenience for consumers, and the cost savings along the value chain, will continue to drive the growth of o2o in two phases: parts efficiency, as proactive diagnostics and digital parts/service selection and scheduling enable a lower cost structure; and labor efficiency, as advanced booking/scheduling and predictive maintenance improve labor utilization and throughput.
“If you get the higher convenience for consumers, together with the potential cost savings, at a first step, if you know which parts will be needed and where they’ll be needed before they are actually needed, you can cut a few steps [from] the value chain and in the supply chain, and you can actually save some real money, as you don’t need hot-shot [delivery], for example,” Freitas explained. “And then in a second step, once we get to a large enough critical mass, and the shops are able to schedule similar services back to back, we might get some efficiencies from the technicians as well.”
Consolidation
According to Roland Berger, the United States is leading the way in terms of consolidation, with the top 10 distributors in the U.S. independent automotive aftermarket (IAM) commanding 75% to 80% of the total market share. Europe is a distant second, at 30% to 35%, while China is at 5% to 10%.
Roland Berger sees more consolidation ahead for parts suppliers and service providers (mechanical and collision). Going forward, there won’t be as many opportunities for large retailers to acquire distributors, Freitas asserted.
“Therefore, if one of those big companies has a hiccup over the next 12, 13 years, we see as a chance of two of those top four or five players actually merging and becoming an even larger player,” Freitas added.
Labor Availability
Looking at the big picture, U.S. unemployment rates were at historic lows in the years leading up to the COVID-19 pandemic. When the pandemic escalated in early 2020, it skyrocketed. Since then, the unemployment rate has been declining steadily. According to the U.S. Bureau of Labor Statistics, the unemployment rate in March dropped to 3.6%.
Neal and Freitas showed two charts that don’t bode well for the future of the IAM. One chart showed a steady decline in the number of students completing postsecondary degrees for automotive repair since 2010. The other chart showed the imbalance between the supply and demand of technicians since 2010. While the technician shortage is nothing new, the gap between supply and demand is projected to widen in 2025 and beyond.
Freitas concluded: “If the industry does not really get organized, we don’t think this problem is going to get solved anytime soon.”
Supply Chain
The headline here is that China appears to be losing its cost advantage – even without tariffs.
For the past decade or so, if you wanted to manufacture products on the cheap, China was the obvious destination. However, when you factor in the rising costs of outbound freight, raw materials, manual labor and other variables, China will lose its cost advantage to Mexico as soon as this year. By 2035, due to the projected increase in China’s labor costs, it will be significantly cheaper to manufacture goods in Mexico compared to China, according to Roland Berger.
Not surprisingly, Roland Berger projects that the percentage of U.S. auto parts manufactured in Mexico will grow from 24% in 2020 to 31% in 2035.
Data Access
By 2035, nearly 100% of new vehicles sold in the United States will be connected, meaning they’ll have the capability to receive and transmit information. Extrapolated to the total U.S. vehicle parc, 66% of vehicles will be connected.
How we get to that point – and how it will affect the IAM – is less certain. Currently, the automakers control most of the data generated by vehicles, which is bad for consumers, bad for IAM suppliers and good for the OEMs. In the medium term, Roland Berger anticipates a shift to open APIs (application programming interfaces) and “mixed control” of vehicle data.
In the long term, a move toward open APIs and open data would be best for IAM suppliers. However, where we land will likely be determined by federal lawmakers and the OEMs.
Action Steps
In light of the study’s findings, Neal and Freitas outlined a number of potential steps that IAM suppliers could take.
“In terms of individual responsibilities, there’s the importance of reviewing the portfolio and product strategy,” Neal said. “As you look at the influx of new technologies, both in terms of electronics, battery-electric vehicles, ADAS and autonomous, how are you adjusting your portfolio to adapt to those and what is the strategy you have, whether that be a last-man-standing strategy or looking for a third leg in terms of other opportunities, or the development of an EV strategy to attack some of the new opportunities that are coming out?”
Regarding the technician shortage, Neal also emphasized the importance of supporting trade schools “as well as supporting of advocacy at the high school and the middle school level for robotics programs and mechanical programs to ensure the interest of that technician force of the future, as well as an industry-level support for new entrants and opportunities, supporting aspects such as augmented reality and remote support for technicians in the field to allow some of those newer solutions to support a broader labor force in the future in terms of the capability set in technology.”
The post
link hidden, please login to view appeared first on link hidden, please login to view.
link hidden, please login to view
-
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.