New AAIA/AASA Report Projects 3.4 Percent Industry Growth Through 2016 -

New AAIA/AASA Report Projects 3.4 Percent Industry Growth Through 2016

The U.S. automotive aftermarket industry is expected to grow 3.4 percent annually through 2016 to $263.8 billion, adding an additional $32.6 billion to the economy. These and additional aftermarket growth figures are contained in a jointly produced Channel Forecast Model sponsored by the Automotive Aftermarket Industry Association (AAIA) and the Automotive Aftermarket Suppliers Association (AASA).

The U.S. automotive aftermarket industry is expected to grow 3.4 percent annually through 2016 to $263.8 billion, adding an additional $32.6 billion to the economy. These and additional aftermarket growth figures are contained in a jointly produced Channel Forecast Model sponsored by the Automotive Aftermarket Industry Association (AAIA) and the Automotive Aftermarket Suppliers Association (AASA).

AAIA and AASA partnered to produce the Channel Forecast Model to create a single industry view of the size, growth rate and outlook for the motor vehicle aftermarket and thus provide a unified view of the industry’s magnitude, significance and potential, importance to legislators, regulators, investors and all stakeholders.

IHS Global Insight, a global leader in economic and financial analysis, forecasting and market intelligence, conducted the market sizing and forecast for the associations. Data is based on U.S. Department of Commerce, Federal Reserve Board and U.S. Census Bureau’s data, IMR and Polk data as well as proprietary IHS economic analysis and forecasting models.

“The forecast model demonstrates that despite strong new vehicle sales, historic high gas prices and a flattening of miles driven, our industry is poised for steady growth,” said Kathleen Schmatz, AAIA president and CEO. “Why? The average age of vehicles is 11.3 years, the oldest ever, and the age mix of vehicles continues to favor older vehicles, creating a robust sweet spot for service and repair.”

“The forecast model anticipates that growth in population, employment and income will lead to growth in miles driven and the number of vehicles on the road resulting in long term aftermarket growth,” said Bill Long, AASA president and COO. “The Channel Forecast Model is a tool to help participants achieve that growth despite some of the major market shifts facing our industry such as vehicle telematics, increasing vehicle technology, new-model introductions and parts proliferation.”

About AAIA
AAIA is a Bethesda, Md.-based association whose more than 23,000 member and affiliates manufacture, distribute and sell motor vehicle parts, accessories, service, tools, equipment, materials and supplies. Through its membership, AAIA represents more than 100,000 repair shops, parts stores and distribution outlets.

About AASA
AASA (www.aftermarketsuppliers.org) exclusively serves manufacturers of aftermarket components, tools and equipment, and related products. It is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members. AASA is an affiliate of the Motor & Equipment Manufacturers Association (MEMA). “AASA, The Voice for the Automotive Aftermarket Supplier Industry”

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By Joe Marconi of Elite
Comebacks are a hot topic today. You need to track
all comebacks, determine the reason (tech error, part error, training issue,
other) and then calculate the true cost of the comeback.
Here are a few things to consider:
• The loss of time when performing the comeback; time that the tech can use to
perform other work and generate profit;
• The misc costs, such as overhead costs, supplies, cleaners, etc.;
• Towing costs, rental, etc.;
• Cost to morale;
• Reputation damage; and
• Reduction to your profit margin.
For every part issue, you need to
inform your supplier. Sit down with suppliers on a regular basis. Don’t return defective
parts until you have listed the parts, and maintain a report. Document
everything.
Part issues are increasing. Every shop
owner I speak to is frustrated over this.
Remember, comebacks kill your bottom
line. The more comebacks you have, the more they’re killing your profits.
This article was contributed by Joe Marconi.
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