Positive Impacts of Reduced New Car Sales and Extended Ownership on the Automotive Aftermarket Repair Industry
The automotive industry is witnessing a pivotal shift characterized by reduced new car sales and an extended length of vehicle ownership. According to S&P Global Mobility, the average age of passenger cars has climbed to 14 years, while light trucks are currently retained for an average of 11.9 years, reaching a new combined record high of 12.6 years. This trend, driven by economic uncertainties, increased vehicle prices, and changes in consumer behavior, presents significant opportunities for the automotive aftermarket repair industry, particularly in areas such as wheel service repairs, wheel alignment, steering and suspension repairs, tires, brakes, and Advanced Driver Assistance Systems (ADAS) calibration services. Additionally, this shift positively impacts the sales of new wheel service repair equipment by companies like John Bean.
Average Age of U.S. Vehicles Continues to Rise, Now at 12.6 Years (caranddriver.com)
Increased Demand for Wheel Services
Extended vehicle ownership directly translates into a higher demand for wheel service repairs. As vehicles age, they are more prone to issues, such as misalignments and uneven tire wear. Regular wheel alignments become essential to ensure proper handling and prolong tire life. With the average vehicle age reaching new heights, automotive repair shops are experiencing a surge in demand for wheel alignment and balancing services. This consistent demand ensures a steady flow of business and boosts the need for advanced wheel service equipment, driving sales for companies like John Bean, known for their state-of-the-art alignment systems.
Steering and Suspension Repairs
Steering and suspension systems are crucial for vehicle safety and performance. Over time, components like shock absorbers, struts, and control arms wear out and require replacement. The rise in the average age of vehicles means more vehicles will need steering and suspension repairs, creating a robust market for these services. Automotive repair facilities benefit from this increased demand, leading to higher revenue streams. Consequently, the necessity for reliable and efficient repair tools and equipment also rises, benefiting manufacturers of specialized repair equipment. That’s us too!!
Tire Sales and Services
Tire wear is inevitable, and as vehicles are kept longer, the need for tire replacements and related services such as rotations, balancing, and repairs increases. Older vehicles require more frequent tire maintenance to ensure safety and performance. This trend drives consistent business for tire retailers and repair shops, contributing to their financial health. Moreover, the increased tire service demand necessitates modern equipment capable of handling diverse tire sizes and types, spurring sales for companies that supply tire service equipment. Yep, that’s us!!
Brake Maintenance and Repairs
Brakes are critical for vehicle safety, and older vehicles often require more frequent brake inspections and replacements. Components such as brake pads, rotors, and calipers degrade over time and must be maintained or replaced to ensure optimal performance. The higher average vehicle age supports continuous demand for brake services, benefiting repair facilities. This persistent need for brake maintenance drives the market for advanced diagnostic and repair tools, further supporting the sales of equipment manufacturers. We have a partner that can help with that!
ADAS Calibration Services
Modern vehicles increasingly feature Advanced Driver Assistance Systems (ADAS) that enhance safety through technologies including lane-keeping assistance, adaptive cruise control, and automatic emergency braking. These systems require precise calibration, especially after routine maintenance or sensor replacements. As vehicles are kept longer, the need for ADAS calibration services grows, creating new revenue opportunities for repair shops. This trend also fuels demand for specialized calibration equipment, benefiting companies providing these advanced technological solutions. Is there anything better than the Tru-Point? I think not!
Impact on Equipment Sales
The extended ownership trend benefits the aftermarket repair industry and positively impacts the sales of new repair equipment. Companies like John Bean, which manufactures high-quality wheel service and alignment equipment, experience increased demand for their products. As repair shops see a rise in service volume, they invest in modern, efficient equipment to enhance their capabilities and meet customer needs effectively. This investment ensures that repair facilities can handle the growing demand for services such as wheel alignments, tire changes, and ADAS calibrations, driving a continuous cycle of growth and technological advancement in the industry.
Conclusion
The reduction in new car sales and the extended length of vehicle ownership present substantial advantages for the automotive aftermarket repair industry. With the average vehicle age now at a record high of 12.6 years, the demand for wheel service repairs, wheel alignment, steering and suspension repairs, tires, brakes, and ADAS calibration services is set to grow. This trend ensures a consistent and expanding market for repair facilities, contributing to their economic stability and growth. Additionally, the need for advanced repair and diagnostic equipment supports the sales of companies like John Bean. By investing in skilled technicians and state-of-the-art tools, automotive repair shops are well-positioned to capitalize on these evolving market dynamics, reinforcing the vital role of the aftermarket repair industry in the broader automotive ecosystem.
Mac Baker "Snap-on Mac"
Equipment Sales Specialist – San Diego, California
Mobile: (760) 515-2227
Email: Mac.Baker@snapon.com
https://www.youtube.com/user/johnbeanequip/videos
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