June 25, 2014—The auto part wholesaling industry suffered a big blow during the recession, but that’s changing.
According to a new study by IBISWorld, auto part wholesaling revenues have been increasing since 2010, and are slated to continue to increase into 2019.
In 2008 and 2009, key partnerships with OEMs were lost and sales suffered due to consumers postponing auto repair services and replacements, but trends have reversed. Now industry revenue has begun to increase annually as demand from automakers rises.
While many American companies decreased production during the economic downturn, foreign-owned companies stepped in and gained a stronger domestic presence during that time. According to a release provided by PRWeb, IBISWorld Industry Analyst Brandon Ruiz said that “major U.S.–based wholesalers Delphi Automotive PLC and Visteon Corporation incurred massive losses as their affiliated manufacturers, General Motors and Ford, decreased production due to fear of further losses."
The biggest growth opportunity in the coming years will be in technologically advanced and fully equipped features, including on-board diagnostic systems and safety features, the report said.
Also, new fuel economy standards are causing automakers to create vehicles with fuel-efficient technology and lightweight components. Demand for these parts will offer a new product focus for wholesalers who want to expand.
