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Whether focused on the manufacturing, distribution or the service and repair sector, the aftermarket management segment encompasses the critical daily business activities that top-level aftermarket executives oversee — including mergers and acquisitions, financial reporting, marketing, research, analysis and more. This market includes c-level executives and upper management within the aftermarket hard parts and heavy-duty manufacturing sectors as well as the distribution segment and ancillary service providers.
Estimated as a $257 billion market in the United States, the automotive service segment of the aftermarket consists of service facilities that offer repairs to underhood and undercar systems on domestic and import passenger cars and light trucks. Working closely with the distribution channel, these repair shops are responsible for determining the appropriate part for the repair and buying the tools and equipment to get the job completed.
The collision repair market includes collision repair facilities (body shops) and the paint, body and equipment (PBE) stores and warehouses that service them with the body/crash parts, paint and chemical products, and ancillary equipment, products and services they use to repair and refinish vehicles to their factory condition. Key to the success of the collision repair facility is the ability to increase shop efficiency and productivity through the use of these products and services, and their own ability to effectively manage the entire repair process in a profitable manner while exceeding the demands of the intense scrutiny they face from insurance providers as well as consumers.
The automotive parts distribution industry is responsible for identifying, inventorying and delivering the correct parts, products and/or services needed for mechanical repair or maintenance of vehicles by repair facilities across the country through a network of retail parts stores, independent jobber stores and warehouse distributors (WDs). In addition to automotive parts, these companies also provide and distribute vehicle accessories, tools, equipment, materials, supplies and general product information in support of the vast vehicle repair and service industry as well as the general do-it-yourself (DIY) consumer market.
The engine remanufacturing/rebuilding segment of the aftermarket is served by engine builders/rebuilders who give new life to engines of various applications, including performance, passenger cars, light trucks, marine, off-road, commercial, industrial, and light-, medium- and heavy-duty gas and diesel applications. Made up of automotive and heavy-duty machine shops, custom engine rebuilders (CERs), and production engine remanufacturers (PERs), these businesses are actively purchasing hard parts, cores, tools, equipment, materials and supplies to both build and rebuild engines.
The powersports market consists of dealers and retailers that sell and service new and used motorcycles, scooters, mopeds, ATVs, snowmobiles and personal watercraft as well as the parts, accessories and apparel associated with these OEM units. These franchised and independent shops work directly with aftermarket distributors and manufacturers to stock an up-to-date product mix to compliment the OEM units.
The North American independent tire dealer market includes retail, commercial and wholesale tire dealers that sell replacement tires, provide tire and vehicle service, and sell ancillary automotive and commercial products. In addition to carrying a wide range of tire brands and types, these dealers also purchase replacement parts, tools, equipment, as well as retail/wholesale operation products and services.
The truck fleet market includes on-highway commercial truck vehicles ranging from Class 3 to 8 medium-duty to heavy-duty trucks. With the need for commercial truck transportation being strongly linked to the health of the economy, the sales of new trucks, fleet equipment replacement parts, tires and oil hinge on vehicle usage.
The dealership market in the United States consists of nearly 17,000 franchised new-car dealerships. In addition to selling light-duty vehicles, dealerships provide vehicle service and sell ancillary automotive and commercial products. This fixed operations business within the franchise new-car dealership focuses on the parts, service and collision repair.
The professional carwash market is in the midst of a significant evolution that is focused on a high level of automation, speed and convenience. Industry statistics show that more people are opting for professional carwashing services over driveway washing. As environmental issues and awareness become more prominent, consumers are seeking more affordable and environmentally preferable ways to maintain their vehicles. Automobile innovation is also changing and as a result of this trend and others, professional carwashing equipment and tools are becoming smarter and more efficient in order to meet demand from a growing, more diverse customer base.