Steady growth and opportunity define the automotive aftermarket, according to the 2007 Outlook Study released by the Automotive Industries Association of Canada.
The study shows that in the period spanning from 2001 to 2006, the average annual growth rate was 3.1 per cent, with the average annual cost of repair forecasted to jump from $1,044 in 2006 to $1,141 in 2010.
Prime aftermarket vehicles that are six-12 years old are expected to reach a decade high of 43 per cent of the fleet.
“The study shows some very encouraging increases in market potential for repairs and maintenance in the coming years. It indicates many areas of opportunity within our industry and offers some solid insight into the future of our target markets,” according to Marc Brazeau, AIA president.
The biggest opportunity lies in capturing some or all of the under-performed maintenance that exists. DesRosiers Consultants determined that, in 2006, 47.8 million scheduled maintenance jobs were not completed on Canadian vehicles, across seven categories of maintenance. This represents a staggering $2.1 billion in lost aftermarket potential.
“AIA’s members and partners have used the Outlook studies to help set the direction of their companies,” says Larry Raymond, chair of the executive board and manager of Blue Streak Hygrade Motor Pruducts. “The 2007 Study offers highly relevant, useful information, critical to gauging the future of our industry.”
The study was completed by Des- Rosiers Consultants Inc. and looks at the Canadian automotive-related markets. Members can download the free PDF by logging on to their account at www.aiacanada.comand clicking on ‘Publications.’