AutomotivePartsIndustryStudybyKentParks,Business&ResearchServicesApril,1999ContentsofStudyI.IndustryStructureManufacturingWholesaleRetailPotentialCompetitorsII.IndustrySizeIII.History/GrowthIV.TrendsV.KeySuccessFactorsVI.CustomerInformationVII.IndividualPartInformationVIII.FinancialRatiosX.ResourcesforFurtherInquiryI“Thegrowingranksofautopartsmanufacturersandsuppliersaremakingthemanimportantcoginthestate’seconomy.”-DennisWhittington,NorthCarolinamagazineI.StructureTheautomotivepartsindustry,frommanufacturertoconsumer,isverycomplexandfragmented.Numeroustradeassociationsservethevarioussegments,andeachhasitsowndefinitionofthemarket.A“jointeconomicandissuesummarystatement”issuedbyseveralautomotivepartsassociationsdividestheindustryintosevensegments:PartsManufacturers,Parts&EngineRebuilding,SpecialtyPartsManufacturing,Manufacturers’Representatives,WarehouseDistributors,Wholesalers&Jobbers,andRetail&Service.1Sincethelinesbetweensomeofthesecategoriesareoftenfuzzy,thisstudyexaminestheindustryasthreebroadsegments:•Manufacturing(StandardIndustryClassificationcode3714)•Wholesalers/Jobbers(StandardIndustryClassificationcode5013)•Retail(StandardIndustryClassificationcode5531)A.Manufacturing:BroadlycategorizedunderSIC3714,partsmanufacturingisdividedintotwobasicmarkets:OriginalEquipmentManufacturing,orOEM,andreplacementparts.OEMdesignatesthosepartsthatareintendedforautoandtruckmanufacturers,inthemanufactureofmotorvehicles;replacementpartsareintendedforserviceandconsumermarkets.Thisstudyconcentratesonthe“aftermarket”,meaningreplacementpartsandotherpurchasesforavehicleonceitisownedbyaconsumer.1TheIndependentMotorVehicleAftermarketJointEconomic&IssueSummaryStatement,Nov.1997.DistributedbyAutomotiveServiceIndustryAssociation.Page1©1999NCSBTDCB.Wholesalers/Jobbers:TypicallyencompassedbySIC5013,thismiddlesegmentoftheindustryhastraditionallyrepresenteddealerswhopurchasedfrommanufacturersandservedasintermediariesforsmallerdistributorsorretailers.Inrecentyears,thedistinctionbetweenwholesalerandretailerhasbecomeblurred.Verticalintegrationandwidespreadconsolidationwithintheindustryhavecreatedmanyestablishmentsthatserveasbothwholesalers,sellingtosmalleroperations,andretailers,withcustomersfromthegeneralpublic.TheAutomotiveServiceIndustryAssociation(ASIA)breaksthewholesaleaftermarketpartsindustryintosevencomprehensiveandmutuallyexclusivesegments:Wholesalingjobbers;Traditionalwarehousedistributors;Warehousedistributorswithoutlets;2-Stepwarehousedistributors;Heavydutydistributors;Paint,Body,andEquipmentwholesalers;andTrimwholesalers.2Thisstudydoesnotinvestigatethedetailsofthesesubcategories,butfurtherinformationonthissegmentisavailablefromASIAat(847)228-1310.C.Retail:Theretailendoftheautomotiveaftermarketisthemostdifficulttodefine,anddifferentsourcesofdataincludedifferentpartsandaccessoriesintheirtotals.Thetwobasiccomponentsoftheretail/servicesegmentofthisindustryarethe“Do-It-Yourself”(DIY)segmentandthe“Do-It-For-Me”(DIFM)segment.TheAutomotivePartsandAccessoriesAssociation(APAA)estimatestheDIYmarket,includingtiresandfluids(twoitemsthatarenotconsistentlyconsideredinreportingaftermarketfigures),tocomprise32%ofthetotalaftermarket,accordingto1997figures.Theother68%isDIFMor“servicerepair”,whichincludespartsandlabor.ThisstudyismoreconcernedwiththeDIYsegment,whicheffectsstrictlypartspurch...
