Automotive Aftermarket Analysis
Automotive Aftermarket Analysis
Industry Definition
The automotive aftermarket is a large contributor to the U.S. economy employing nearly 4.6 million people. New replacement automotive parts such as alternators, brakes, lights, bumpers, fenders, and so on, are parts referred to as “aftermarket” or “functionally equivalent” parts when made by a company other than the original car manufacturer (Ford, Chrysler, Chevrolet, and others). This industry sells automotive parts and other products used to maintain or repair light and heavy duty vehicles. Products are sold both to consumers who repair or accessorize their own vehicles, the “do it yourselfers” (DIY) and to professional service stations or installers like gas stations, auto repair shops and service departments which are the “do it for me” (DIFM) providers.
Dominant Economic Features
Nearly 45,000 companies with combined annual revenue of $135 billion define the wholesale and retail automotive parts industry. Top companies include Genuine Parts/NAPA, AutoZone, Advance Auto Parts, CSK Auto, and Pep Boys, all with annual sales over $1 billion. The top 25 wholesalers and top 40 retailers each have annual sales over $100 million. Many large firms operate both wholesale distribution centers and retail stores (Hoovers, 2008).
During the 2003 -2007 periods, the US automotive aftermarket demonstrated fairly slow but steady rates of growth and is expected to continue over the forthcoming five years (DataMonitor, 2007). As stated by AAIA, “Overall aftermarket sales increased in 2004 to $257.0 billion, an increase of 5.4 percent from 2003. An increasing number of miles driven by an ever-growing vehicle population helped the aftermarket increase in 2004. Sales in the automotive aftermarket (cars and light trucks) totaled $190.5 billion and sales in the heavy duty vehicle aftermarket totaled $66.5 billion” (AAIA, 2008).
Estimated as a $257 billion market in the United States, the aftermarket helps keep
Industry Definition
The automotive aftermarket is a large contributor to the U.S. economy employing nearly 4.6 million people. New replacement automotive parts such as alternators, brakes, lights, bumpers, fenders, and so on, are parts referred to as “aftermarket” or “functionally equivalent” parts when made by a company other than the original car manufacturer (Ford, Chrysler, Chevrolet, and others). This industry sells automotive parts and other products used to maintain or repair light and heavy duty vehicles. Products are sold both to consumers who repair or accessorize their own vehicles, the “do it yourselfers” (DIY) and to professional service stations or installers like gas stations, auto repair shops and service departments which are the “do it for me” (DIFM) providers.
Dominant Economic Features
Nearly 45,000 companies with combined annual revenue of $135 billion define the wholesale and retail automotive parts industry. Top companies include Genuine Parts/NAPA, AutoZone, Advance Auto Parts, CSK Auto, and Pep Boys, all with annual sales over $1 billion. The top 25 wholesalers and top 40 retailers each have annual sales over $100 million. Many large firms operate both wholesale distribution centers and retail stores (Hoovers, 2008).
During the 2003 -2007 periods, the US automotive aftermarket demonstrated fairly slow but steady rates of growth and is expected to continue over the forthcoming five years (DataMonitor, 2007). As stated by AAIA, “Overall aftermarket sales increased in 2004 to $257.0 billion, an increase of 5.4 percent from 2003. An increasing number of miles driven by an ever-growing vehicle population helped the aftermarket increase in 2004. Sales in the automotive aftermarket (cars and light trucks) totaled $190.5 billion and sales in the heavy duty vehicle aftermarket totaled $66.5 billion” (AAIA, 2008).
Estimated as a $257 billion market in the United States, the aftermarket helps keep
References: AAIA. (2008) Industy Trends. Retrieved March 20, 2008, from http://www.aftermarket.org/ “AAIA Releases Software for Converting PIES Data“ Automotive Aftermarket Industry Association, Retrieve March 23, 2008. [ http://www.aftermarket.org/Home.asp] http://www.righttorepair.org/press_releases/20070809_Right_to_Repair_Gains_More_Congressional_Sponsors.pdf Hoovers. (2008) Automobile Parts Wholesale - Retail. Retrieved March 20, 2008, from http://www.hoovers.com/automobile-parts-wholesale-retail/--ID__192--/free-ind-fr-profile-basic.xhtml DataMonitor. (2007). Automotive Aftermarket. DataMonitor Industry Market Research. Datamonitor/United States. December 15, 2007.