We reached out to a number of leaders and executives from the supply chain to jobber stores and asked them to highlight how business will change in the year ahead, what the biggest challenge for the industry is moving forward and what they see as the top opportunity in 2022. We will present their answers in alphabetical order over the coming weeks…
Continued global supply chain disruptions in raw materials and microchips have prevented new vehicle manufacturing capacity from keeping pace with demand in the U.S. This situation points to an acceleration of current trends on vehicle age in the North American car parc. With the average vehicle age increasing faster over the next 12 months, expansion of the aftermarket and used car industry will accelerate with it. Providing service and repair parts for a thriving used car market will continue to be a huge opportunity.
Onshoring is the natural response to the current supply chain issues. Transportation shortages from ocean containers to commercial drivers coupled with strong demand all make manufacturing in North America competitive and attractive again. Suppliers will need to invest strategically in new manufacturing capacity.
Supply chain challenges have redefined value delivery in the aftermarket. Product availability is now of paramount importance to aftermarket customers and end-users.
North American manufacturing is at the cusp of a rebirth. As the offshore industry is challenged through force majeure and macro impacts (pandemics, weather, natural disasters, regulations, etc.) to provide customers rapid delivery, customers are increasingly embracing North American supply strategies. This is the opportunity for North American manufacturers to seize back market share from Asia.