A study in the United States expects a 3.6 per cent growth in the American aftermarket over the next 36 months.
The 2017 Joint Channel Forecast Model produced jointly by the Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association predicts that total aftermarket sales will grow nearly $40 billion from 2016-2020 – from $277.1 billion to $316.4 billion.
Behind these forecasts are a levelling off of gas prices and improved miles driver, conditions that are favourable for growth, said Bill Hanvey, Auto Care Association president and CEO. “Why? The average age of light vehicles, now up to 11.7 years is the oldest ever, and the age mix of vehicles continues to favor older vehicles with 48.5 percent of total light vehicles in the 11-year-and-older category, therefore, creating a robust opportunity for service and repair.”
Even though new car sales have slowed in the U.S., numbers remain strong, but it is outweighed by those factors, Hanvey noted.
“The pattern of continued growth in the aftermarket bears out the optimism among our supplier members and their customers – all companies are anticipating growth in 2017 and beyond,” said Bill Long, president and chief operating officer at the AASA. “We are a large, steady and stable industry, but advanced technologies are challenging traditional assumptions and knowns regarding the aftermarket.”