1 MEMA Information Services Council October 15, 2007 Naples, FL.

Slides:



Advertisements
Similar presentations
FCX Performance, Inc.. The Power of One 2 World class flow control solutions built on over 100 years of experience FCX does not run businesses; we provide.
Advertisements

July 18, 2008, Atlas Copco Group Q2 Results July 18, 2008.
February 4, 2008, Atlas Copco Group Q4 Results February 4, 2008.
High-Level Seminar on E- Communications The development of the ICT sector during the crisis: International comparisons Information Technology Outlook Graham.
2007 AFLA Conference Tom Webb
Steve Griffitts, President Joe Dunlap, Ed.D., President.
Simoniz® Distributor Program Simoniz® Distributor Program Presented by: Jim Dorsey II National Accounts Manager
Counterfeit and Gray Market Flow Chart. A simplified flow chart illustrating the normal flow of products produced by U.S. manufacturers include: Raw material.
RETAIL RUSSIA Conference > TOPICS: Why Russia? Market Entry Strategy Practical Advice - Russia Copyright © 2003 MarketOption, Inc. Presented by:With assistance.
Marketing Channels and Channel Mapping
Future Financial Forecast An update on the big economic picture for credit, interest rates and inflation. Paul Cahill Chief Executive Officer.
Thomas A. Danjczek President Steel Manufacturers Association March 29, 2013 Guangzhou, China 11 th International Steel Market and Trade Conference Update.
 The automotive industry is one of the most vital forces in our global economy  The global automotive industry grew by 21% in 2010  The industry is.
NEWELL COMPANY: CORPORATE STRATEGY
Chapter 2: Strategy and Sales Program Planning
Can Ireland Secure its Competitive Edge? Don Thornhill, Chair National Competitiveness Council ISME Conference 19 th - October 2007.
Counterfeit and Gray Market Flow Chart
CAF Aftermarket Conference A Strategic Event Produced by the AASA China Aftermarket Forum December 4, 2009.
Shared Infrastructure: New Operational Models for Achieving Greater Efficiency, Effectiveness and Sustainability Presented by: Howard Brodsky Co-CEO &
1 Chapter 7 Section 1 Global Economics Objectives Describe how international trade benefits consumers. Explain the significance of currency exchange rates.
Sherzod Artikov Brian Ross Clara Fischer Daniel Boudreau.
Strategic analysing to (BMW) by : ayman el-majdalawee Supervision Dr: Ezz ElArab El- Awoor.
Global Economy (International Business) n Importance to DFW Area n Why TXU Went International n How TXU Decided Where to Enter (the Strategy) n What TXU.
Marketing Executives Council October 4, © 2005 Motor & Equipment Manufacturers Association Agenda 10:00amWelcome and Introductions 10:15amAASA Strategic.
Global Hot Swap Controllers Industry 2015 Deep Market Research Report Toll Free: +1 (800) Direct:+1 (503)
Manufacturing 20/20 Prospects for a Competitive North American Economy Jayson Myers Senior Vice-President & Chief Economist, CME.
Fuel Pump Returns: Do We Have a Problem? October 19, 2005 Romulus Marriott Romulus, Michigan.
What Does it take to Succeed in this Industry? Economic Sociocultural Global Technological Political / Legal Demographic GeneralIndustryCompetitor Threat.
MAXIMIZING PROFIT THROUGH COLLABORATION ECR Developments in Russia.
Global Electrical Switch Consumption Industry 2015 Deep Market Research Report TELEPHONE:
Simoniz® Distributor Program Simoniz® Distributor Program Presented by: Jim Dorsey II National Accounts Manager
The Big Picture: Global Industry Status and Prospects: North American Perspective 2012 AMSTERDAM.
Chapter 8: Services Marketing and Customer Relationships.
WABASH NATIONAL CORPORATION (NYSE:WNC)
ERP Applications Companies in China 2015 Published on : October
Current Drivers Impacting Steel Competitiveness UPDATE – January 2007 Thomas A. Danjczek, President Steel Manufacturers Association January 23, 2007 Valve.
Mitsubishi’s Transition to a Demand-Driven Business Model Greg O’Neill President & COO, Sales Division Mitsubishi Motors North America, Inc. Forrester.
N ATIONAL I NDUSTRIES FOR THE B LIND S TRATEGIC P LAN October 13, 2015.
The Manufacturing Value Chain Is Much Bigger Than You Think! PA-165 Presented by: Dan Meckstroth, Ph.D. Vice President and Chief Economist
What Does it take to Succeed in this Industry? Economic Sociocultural Global Technological Political / Legal Demographic IndustryCompetitor Threat of new.
Global Auto Components Market Report: 2015 Edition Published: Oct 2015 Single User License: US$ 800 No. of Pages : 52 Order this report by calling
Economic Dynamics of Freight & Modes. The Trucking Industry.
Consumer Software Companies in China 2015 Published on : October
Global Auto Differential Gear Industry 2015 Deep Market Research Report Industry Size, Share, Growth, Company Profiles, Demand, Insights, Analysis, Research,
TRENDS IN RESIDENTIAL PROPERTY MANAGEMENT AND BROKERAGE A Presentation to NARPM April 11, 2016.
Steve Handschuh Automotive Aftermarket Suppliers Association National Automotive Service Task Force General Meeting Las Vegas Nevada November 03, 2009.
Fiber Optics Companies in China 2015 Published on : October
Market Reports On China Elliptical Trainers Market Trends in China.
© 2016 Global Market Insights, Inc. USA. All Rights Reserved CarSharing Market share to grow 34.8% CAGR from 2016 to 2024: Global Market.
Federation of Automotive Products Manufacturers
Iran’s Automotive Industry: Opportunities & Challenges ahead
Title Arrow Cloud NOTE: Remember to update name on slide.
Introduction First established as Federal Express, today’s FedEx Corporation is one of the most recognized brands for their express delivery system, FedEx.
This presentation provides:
© 2016 Global Market Insights, Inc. USA. All Rights Reserved Lithium Ion Battery Market Price, Packaging Trends, Industry Outlook &
Chapter 2: Strategy and Sales Program Planning
SCM-655: Global Supply Operations Strategy
More Vehicles, More Miles = More Auto Parts
2016: Going Nowhere Fast The Modern Tire Dealer annual industry issue reported that total 2016 shipments of US replacement tires were million,
Performance Parameters
2017: The Last, Best Year? Total 2017 US light vehicle sales were a very respectable million units, 1.7% fewer than 2016’s record year, but exceeding.
Auto Repair Market Profiler 2018
Gabriela Martinez.
© 2016 Global Market Insights, Inc. USA. All Rights Reserved Automotive Part Cleaners & Degreasers Market to cross $47.5bn by 2024 :
Business marketing defined
Going the Extra Mile Although total 2016 fuel sales at US convenience stores decreased 9.2%, or $549.9 billion, compared to $574.8 billion for 2015,
Principles of Marketing
Industry Insights According to The NPD Group, total 2018 sales for the automotive aftermarket, which includes parts, tires, batteries and many other.
© 2016 Global Market Insights, Inc. USA. All Rights Reserved Global Electric Motors Market Size to cross $36 Bn by 2024: Global Market.
Opportunities In U.S. Automobile Market Innovations in the Automobile Retail Business Model Kevin Tynan Bloomberg Intelligence June 2019.
Presentation transcript:

1 MEMA Information Services Council October 15, 2007 Naples, FL

2 Discussion Outline 1. Brief Overview of AASA 2.Defining the aftermarket 3.State of the industry 4.Health of the supplier base 5.Open discussion & Questions

3 AASA Leadership in the Global Automotive Aftermarket Automotive Aftermarket Suppliers Association Aftermarket Market Segment Association (MSA) of MEMA –HDMA, OESA Nearly 300 Member Manufacturers Represent 80% of North American Aftermarket Volume Approximately $154 Billion in Sales

4 Automotive Aftermarket Suppliers Association AASA serves as the voice of the automotive aftermarket suppliers and: –is a recognized industry change agent –promotes a collaborative industry environment –provides a forum to address issues –serves as a valued resource for members

5 AASA Value Proposition 1.Government Affairs 2.Image of AASA Member Manufacturers in the Automotive Aftermarket Industry 3.Market Research, Industry Analysis, Benchmarking & Best Practices 4.Manufacturing Standards 5.Industry Collaboration on Issues Important to AASA members 6.Brand Protection and Intellectual Property Rights 7.Global Opportunities and Challenges for AASA Members 8.Education & Training 9.Member recruitment, retention & satisfaction

6 Defining the U.S. Aftermarket 2006 New vehicle parts market = $193 billion Light vehicle aftermarket sales of products and service $209 billion Sales of Heavy Duty aftermarket products and services $59 billion Combined light/heavy duty aftermarket products and services $268 billion

7 Primary Drivers of Aftermarket Sales Volume Vehicles in Service Miles Driven

8 Source: R.L. Polk

9 Vehicle Miles of Travel in the U.S.

10 Total Light Vehicles in Use by Age Automotive Aftermarket Sweet Spot Source: R.L. Polk

11 Average age of light vehicles in use in the U.S.

12 Shares of Vehicles in Service Source: R.L. Polk

13

14 Shares of New Vehicle Sales Source: Ward’s Automotive

15

16 Aftermarket Distributor Sales Source: MFSG * MEMA Est.

17 Unperformed Maintenance (Billions)

18 Producer Price Index Motor Vehicle Parts and Accessories Base = 12/1/2003

19 U.S.-World Parts Trade Source: U.S. Bureau of the Census

20 U.S.-EU Parts Trade Source: U.S. Bureau of the Census

21 U.S. - China Auto Parts Trade, Since 2000, the auto parts trade deficit with China increased 333% Source: U.S. Bureau of the Census

22 AASA Automotive Aftermarket Index

23 State of the Industry Aftermarket large and growing modestly Primary aftermarket drivers—vehicles in use; miles driven—continue positive Significant period of transition and challenge Still a relationship business at the store to buyer level Fundamentals of quality, availability and service still mean something Balance of power has shifted; “power buyers” WD’s and retailers in the driver’s seat Aftermarket mergers and acquisitions continuing at a record pace; transactions first 6 months of 2007: 55; up 28% over 2006 Private equity creating churn in the aftermarket; 21 of 55 transactions Service Dealer demand for form, fit and function driving increased SKU count and inventory investment Insistence on lowest invoice price accelerating low cost country sourcing Value-adds being stripped from prices at all levels

24 Parts Suppliers: The Largest Manufacturing Sector in the USA

25 Supplier Jobs: Midwest Focused, but Moving Southeast Source: MEMA, “Motor Vehicle Suppliers: The Foundation of U.S. Manufacturing,” January 2007

26 Health of the Supplier Base Manufacturers are struggling to maintain profitability Margin erosion at all levels Globalization impacting acquisition and sourcing Raw material costs rising Value added suppliers are competing for lowest price business NA manufacturing shifting focus to emerging international markets Little collaboration to address industry issues Many are well under way in transforming themselves into global manufacturers/”provisioners”

27 Industry PPI/CPI/ECI YTD % Change New Vehicle CPI (through the dealer – includes incentives) - 5.0% Light Duty Vehicle Manufacturer PPI (dealer to the manufacturer) % Motor Vehicle Parts PPI-Commodities (OEM to the supplier) 2.85% Primary Metal PPI % Plastic Materials & Resins PPI % Petroleum Refineries PPI % Employer Cost Index for Benefits - Manufacturing % The NA Table of Pain Business models must survive through... Source: CAR and OESA at the 2005 Management Briefing Seminar; Updated by OESA through February 2007 Note: Auto accounts for 41% of US steel consumption, 31% of US iron consumption, 32% of US aluminum consumption and 4% of US plastic consumption (CAR – Fall 2003 economic significance report)

28 AASA Supplier Barometer Q Question 8: How significant are these issues facing your company? Healthcare costs Availability and cost of raw materials Lack of pricing power Weak salesGlobalizationLabor cost & availability Excess inventoryRegulatory & legal issues Product returnsCounterfeit products Q-1Q-2Q3 1= Not important 5 = Very important

Wild Cards Impact of rising gas prices Collapse of subprime mortgages and tightening of credit markets 29

30 Opportunities for Suppliers Collaboration with channel partners Use technology to reduce cost and for competitive edge Low-cost manufacturing strategy Strategic alliances/partnerships Revenue diversification Leading market position (product, technology and process)

31 Association/Industry Information Technology Leadership MIS Council: 35 years of leadership Growth and success of the Aftermarket eForum Association push for data standards adoption Growing number of 3 rd party providers Expanding technology capabilities of repair professionals Increasing prominence of IT managers at the manufacturer level

32 “The best way to predict the future is to create it”.

33 Questions?

34 Thank You!