Transportation & Logistics Industry Update
Key Trends in the Industry
Recent Harris Williams Survey on Automotive Aftermarket Consumers
To more fully understand the key differentiators of successful automotive aftermarket companies, the Harris Williams Transportation & Logistics Group recently surveyed more than 2,000 U.S. consumers.
The survey revealed which types of aftermarket products consumers buy most often, where they buy those products, and how much they spend on key categories in a year.
The poll also identifies the specific car ownership period during which consumers are most likely to buy key types of aftermarket products, which factors drive purchasing behavior and which matter less, and the degree of loyalty felt by the average consumer.
What We’re Reading
"After months of stalls and deliberations, the United States, Canada and Mexico reached a new trade agreement to replace NAFTA right before the U.S.-imposed Sunday deadline. Among the changes, the updated auto rules of origin (Chapter 4) requires that 75 percent of a vehicle’s content must come from North America, up from the current 62.5 percent to receive duty-free treatment. The agreement also includes a labor wage provision requiring a percentage of a vehicle to originate from workers earning at least $16/hour to be eligible for duty-free treatment."
"There has undoubtedly been a dramatic shift in the retail industry over the past several years. Ultimately, the auto parts sector has managed to remain more immune to the undesirable effects. To continue to protect itself from the impact of e-commerce, the automotive aftermarket industry should continue to leverage physical stores, digital B2C (business-to-consumer) and B2B, and the evolving supply chains that enable these marketplaces. By doing so, the industry may prove to be more resilient in the e-commerce revolution than others."
"By most accounts, business in the automotive aftermarket today is good. However, if independent repairers expect the customer of tomorrow to just waltz into their shops, they could be waiting a long time. Robert Stevens, director of garage networks and technology at Groupauto International, urges independent repairers to push for data access as connected vehicles continue to take market share, “If we don’t, we are literally going to miss an entire generation of the car parc until we get to the point where we can get that direct data. And we can’t afford that.”"
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