RESEARCH TRIANGLE PARK, N.C. – The automotive aftermarket outlook is getting brighter but the industry is not out of the woods yet, according to the Aftermarket Supplier Sentiment Index as measured by the Automotive Aftermarket Suppliers Association (AASA) in the fourth quarter 2011 “AASA Aftermarket Supplier Barometer.”
 
“In our fourth quarter ‘Aftermarket Supplier Barometer,’ supplier sentiment rose into positive territory, reversing a trend of five consecutive quarters of decline,” said Steve Handschuh, president and COO of AASA. “The majority of AASA Barometer respondents also reported fourth quarter sales growth, and 17 percent reported growth as substantial, which is the best sales performance since Q1 2011. Further good news is that the majority of AASA Barometer survey participants are forecasting revenue growth for their company in 2012.”
 
While the outlook for the future has become significantly more positive, it is still low by historical standards and challenges remain. “Despite sales growth, margin performance deteriorated in the fourth quarter 2011,” noted Paul McCarthy, AASA vice president of industry analysis, planning and member services. “Declining margins despite a strong market may be a possible reflection of a lack of bargaining power by suppliers in the automotive aftermarket.”
 
McCarthy added that survey responses indicate that the business drivers respondents currently find most challenging are: increasing competitive intensity, customer pressure and raw material costs and availability.
 
The “AASA Aftermarket Supplier Barometer” is a quarterly survey of AASA full service supplier members on key indicators and market trends. The full survey report is an exclusive AASA member benefit and is available only to member companies that participate in the survey.