Automotive Aftermarket Industry Association A Snapshot.ppt

sizeofu s automotiveaftermarket 253 1billionin2004 190 1billionautomotiveonly2 6percentoftheu s grossdomesticproduct5 2 growthin20014 6 growthin20023 7 projectedin20034 2 growthin2004 estimate u s automotiveaftermarketindustryemployment 4 6millionpeopleemployedintheaftermarketconstructionindustry6 1millionhospitals4 0millionautomotiveaftermarket4 6millionfederalgovernment2 7millioninsuranceindustry2 4milliondepartmentstores2 3million gdpofselectedindustries realestate 1 116billionhealthservices 547billionconstruction 44billionautomotiveaftermarket 245billiontelecommunications 209billionlegalservices 134billionprinting publishing 106billionhotels lodging 87billionamusement recreation 81billionfarming 79billion aftermarketcontributiontou s economy 244billion 4 6millionjobsbeer 174 9billion 2 6millionjobswine 45billion 556 000jobshardliquor 40billionvodka 8 6billion marketplacesnapshot u s vehiclesinoperation226millionaverageage9 1yearstotalmilesdriven2 9trillionaveragemilespervehicle12 000licenseddrivers194million automotiveaftermarketsales servicemarketoutletshare 1960 s 92 4001970 s 105 600 14 1980 s 132 500 25 1990 s 161 900 22 2000 s 182 400 13 vehicledurability u s miles vehicleusefullife inmiles globaltrends vehiclelife inboththeusandwesterneurope oemtechnologyandvehicledesignhaveresultedin bettermade longerlastingvehiclesreducedmaintenanceandlongerserviceintervals computers electronicsrule thecomputertechnologyintoday scarsandlighttrucksis1000timesmorepowerfulthanthatwhichguidedtheapollomoonmission everynewvehiclehasasmanyas50computerchipsthatcontroleverythingfromairbagsafetysystemsandantilockbrakestogpssystems fuelefficiencyandemissions electronicsnowcontrolmorethan86percentofallsystemsinatypicalvehicle advancedtechnologyvehicles automakersareexploringatleastsevenalternativefuelsthreemillionalternativefuelvehiclesontheroadtodayplus fuelcellhybridelectriccleandieselhydrogen hybridgrowth today svehiclesvs apollo11 today svehiclesapollo11memory inbytes 1 000 00036 000cycles second56 000 00043 000processor32bit14bit repairoutlettypenumberindependentrepairshops125 000newcardealerships22 000independentcollisionshops46 000tiredealers28 000fastlubecenters6 600servicestations wservice7 500retail deptstores12 000totalnetlocations247 100 repairlocations carsandlighttrucksperservicebay diy difmnotes fact 77percentofallu s householdscontainatleastonediyerwhomaintains primarilyforthepurposeofsavingmoney forty threepercentarefemale fact 61percentofdifmsarefemale mostwomenoutsourcebecausetheylackconfidenceintheirability mostmenoutsourcetosavetime note percentagesmaynotsumto100percentduetorounding wherediyersbuyparts autopartsstores67 8 discountstore41 9 carortruckdealership7 7 independentpartsstore4 4 tiredealer3 5 membershipwarehouse3 1 departmentstore2 6 other4 4 superstores2004vs 2005 maintenancebehaviorvariesdramaticallybyageofvehicle nearlynew0 5yearslowservicedealer primarymaintenance6 13yearshighrepairgarage veryold14 yearmoderateretailer do it yourselfer northamericaprofileofreplacementpopulation vehicleagereplacementratechannel northamericanreplacementmarket oeimpactonreplacement asoequalityimproves replacementtiminggetspushedbackforsomeproducts newtechnologyacceleratesthistrendenginepartssparkplugs 0123456789101112131415 enginesparkplugsgasketswipersbrakepadschassisparts averageageofvehicleatfirstreplacement 1980 2003 changingconsumerdemographics yourfuturecustomerisnotlikelytobeyoung caucasianormale getreadyforgeezers anethnicmixandwomen geezergrowth thefirstof78millionboomers 1946 1964 willstartretiringin2008thenext45milliongenerationxerscan tfilltheirshoesby2025 62 increasein65 yearolds74 increasein55 64yearolds9 increasein45 54yearolds ethnictrends whitebirthcomprised61 in2000willdropto56 in2010willdropto42 in2050african americanswilldoubleby2050latinoswilldoubleby2050to88million reachingthehispanicmarket 700billionpurchasingpower34 4percentofallhispanicsintheu s areunder18yearsold75percentofyounghispanicssaytheyspeakspanishhomedepot circuitcity jcpenneybilingual signage collateralmaterials staff giftcards creditapplicationikeapublishingfirstspanishcatalog thefemaleinfluence contribute 23trilliontoeconomy49 ofworkforceown36 ofbusinessesdirectlyinfluence80 ofallpurchases thefemalecustomer morethanhalfofalldriversaccountfor70 ofvehicleservicedecisions90 areinvolvedinmaintenancedecision makingprocess86 havereadowner smanual4 thinktheyareseveredrivers thefemalecustomer 41 areseveredrivers78 feelstronglyaboutmaintenanceimportance68 actuallyfollowmaintenanceschedule23 hadnoknowledgeofwhatwascoveredintheirwarranty thestateoftheindustry challenges consumerawarenessshortageofqualifiedtechnicianspricesextendedmaintenanceintervalsaccesstooeinformationconsolidationofsuppliersoe newcardealerpressurepartsproliferationexcessinventorywallstreetperceptionimage newvehicledealersshareofthetotalu s lightvehicleaftermarketrevenue aftermarketopportunities 60billionannuallyinunperformedmaintenancemorevehiclesontheroadageofvehiclegrowing 9 years 38percentover10years recordusefulvehiclelifereaches15 years femaleconsumerstrengths autorepairistoogoodofagooddeal asamatteroffact pricesforautopartshavegrownverylittleinthe22yearsfollowingtheresettingofthecpiin1982 2004nationalcarcaremonthchecklanesshow87percentfailurerate lowwasherfluid26 lowordirtyengineoil34 lowpower steerfluid23 lowtransmissionfluid26 windshieldwipers14 lowtirepressure25 statisticsfromthenccminspectioncampaigninapri