We Are Part of a Great Industry
The automotive aftermarket is a $308 Billion industry employing over 4.2 million people who service over 350 million vehicles. Today, the industry is seeing tremendous change on a number of fronts.
The average age of an automobile is about 11.3 years and growing, which is good for the aftermarket. But CAFE fuel consumption laws and growing NHTSA and EPA regulations are making new vehicles smaller and more complex. Today's cars are approaching the 100 million lines of software code level and the aftermarket is challenged to stay current with a widening gap in service technology between an aging vehicle population and today's new entries.
Telematics technology is changing the way vehicles are monitored and serviced. This can be a true opportunity for aftermarket players, but it may also be a threat if vehicle manufacturers use telematics as a fence to keep independent service providers isolated from their buyers. This is a battle over who owns the data coming off the vehicle. The OEMs would say they do. The aftermarket sees the data as the property of the vehicle owner.
New powertrain technology is changing the types of components requiring service and the types of knowledge you need to do so. Powertrain electrification, alternative fuels such as natural gas and hydrogen and new frame and body materials are introducing new technologies and new manufacturers to the industry.
Vehicle manufacturers are simultaneously decreasing their number of platforms while expanding their reach to global suppliers. That is changing the face of component supply and vehicle service and challenging the operations of wholesale and retail distributors.
Consolidation of both wholesale and retail companies continues to change the landscape as people seek new ways to generate corporate value. You need constant connection with market insiders to understand who is in play.
With challenge comes opportunity. Schwartz Advisors works hard to stay current with moves in the market to be able to offer you solid advice and support.