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.”"
Public Markets Overview1
Stock Price Performance1
The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.