Automotive Aftermarket Sector Update
Key Trends In The Industry
Cleaning Up: Strong Fundamentals Drive Carwash Investments
The carwash sector is attracting strong investor attention. That’s due to a high levels of fragmentation, fundamentally solid financials, and resilient consumer demand. Operational improvements are on the agenda for many operators, supporting a robust equipment supplier landscape. And interest in the express wash segment continues to grow.
In this article, Harris Williams & Co. Transportation & Logistics (T&L) Managing Director Jason Bass and Director Jershon Jones discuss the key value drivers in this dynamic sector.
What We’re Reading
Aftermarket News (May 22, 2018)
As a result of the global connected vehicle population expected to reach over 200 million by 2025, automotive OEMs strive to differentiate themselves through providing a personalized space-age customer experience: artificial intelligence, virtual assistants, digital cockpits, and data monetization solutions. Over the next several years, OEMs will need to partner with data aggregators, technology providers, and data-driven analytic companies to synthesize and deliver meaningful data to consumers.
Automotive Logistics (April 30, 2018)
While OEMs and suppliers have implemented Lean and Six Sigma methodologies into manufacturing processes to achieve efficiency and quality control optimization, they’ve struggled on the supply chain side. Integrating IoT technologies – damage alerts, real-time location data, and geofence notifications – allow automotive manufacturers to reduce waste, improve quality control, and realize cost-savings.
Modern Tire Dealer (May 17, 2018)
The future of the automotive aftermarket is unpredictable, but there are ways in which tire dealers and automotive service providers can proactively begin to change with the coming evolution. From increased automation to the Zipcar alternative to the Uber factor, demand for repair and maintenance services will continue to exist to maintain reliable cars. It will also be imperative to shift with generational trends in order to meet evolving needs, including online presence.
The Drive (April 26, 2018)
Americans are becoming increasingly hesitant to embrace fully autonomous vehicles as they would prefer to drive themselves, would miss driving altogether, or would not feel entirely safe. The adoption curve for autonomous driving is extremely steep, given the implications it will have on people’s safety and day-to-day lives.