The light vehicle automotive aftermarket industry is expected to grow 4.2% in 2006, according to new research from the US Automotive Aftermarket Suppliers Association (AASA).
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A detailed analysis of the size of the aftermarket is included in the soon-to-be-released 2006-2007 AASA Automotive Aftermarket Status Report.
According to AASA, the value of the light vehicle aftermarket (parts and labour) broke the $200bn mark for the first time in 2005, finishing at $200.41bn – a 5.2% increase from 2004.
The jump was the highest the industry has experienced since a 5.6% increase in 2000. If the $54.5bn heavy duty aftermarket (Class 6 through 8 trucks) is included, the total US aftermarket is $255bn – a 5.1% increase over 2004.
AASA estimates that the light vehicle aftermarket will end 2006 at nearly $209bn. Growth will continue at a somewhat slower pace and reach $239bn by the end of the decade.
“We expect the aftermarket to only get stronger in the years to come,” said AASA executive director Steve Handschuh. “Our industry is vital to keeping the 232 million vehicles on US roads running safely and efficiently and, ultimately, in keeping Americans productive and mobile.”
Vehicles more than 10 years old account for the largest share of the dollars spent and provided the largest boost to 2005 overall aftermarket value. This category, along with the six- to 10-year-old vehicle group, is expected to continue to expand at a stable pace, while new to five-year-old vehicles are projected to decline in aftermarket volume through to 2010.
According to AASA research director, Frank Hampshire, AASA uses a “survey cost method” to calculate the size of the industry. “This method involves multiplying the number of vehicles on the road for each model year, by a survey-derived estimate of service and repair dollars spent on vehicles by model year,” he said. “This method accurately captures the full spectrum of aftermarket activity, but offers limited means of analysing or estimating expenditures by DIY share or type of product/service.”
AASA’s estimates for the light vehicle aftermarket exclude warranty work, collision and accessories, but include fleet maintenance and repair. AASA’s estimates do not include parts for medium and heavy-duty trucks and trailers, off-highway equipment, farm machinery, motorcycles and scooters, snowmobiles, watercrafts, industrial equipment or recreational vehicles.
In terms of aftermarket components and services, AASA’s size of the aftermarket estimates is restricted to replacement parts and related services and does not include appearance products and services, petrol, dealer preparation, car audio and entertainment centres, hand tools and service diagnostic equipment and paint and body equipment.
