Bill Long, AASA president and chief operating officer, provided key industry dynamics and influences shaping and impacting the automotive aftermarket at the 2015 AASA Media & Member Briefing held earlier this week during AAPEX. He discussed how AASA is fulfilling its mission to advance the business interests of its automotive aftermarket supplier members by helping them address these trends.

Also in attendance were Steve Handschuh, president and CEO of MEMA; Tim Corcoran, AASA chairman and managing director ZF services, North America; John Chalifoux, president and COO of MERA; and Tim Kraus, president and COO of HDMA.

“There is positive buzz about the aftermarket in general. Our industry is huge, representing over a $250 billion opportunity in 2015, and is projected to grow close to 3 percent over the next three years. Foundational industry trends are also positive: Our addressable market, (the vehicle parc) is growing and is expected to add some 10 million net new vehicles to the U.S. car population in the next three years. … Low unemployment and affordable gas prices have led to the return of miles driven to pre-recession levels. It’s no surprise that the mood is positive. In AASA’s most recent Quarterly Supplier Barometer survey, our members reported growth in the range of 3 percent to 5 percent.

“Among all this good news, however, there are some important hidden dynamics that our industry must make note of and cannot ignore,” Long noted.

He mentioned how much of the growth we are seeing (and will see) is being driven by the higher prices of today’s newer technology, and that new technology causes parts to last longer, reducing replacement cycles and failure rates.

“A key battleground for growth in the aftermarket will be the ‘do-it-for-me’ or DIFM market,” Long said. “This year, AASA released an extensive thought leadership report, ‘DIFM Outlook 2025,’ alerting aftermarket suppliers and channel partners to this major industry shift.”

Today, DIFM represents a dramatic 74 percent of all aftermarket product volume. By 2025, DIFM will grow by some $14 billion and represent 78 percent of all aftermarket product volume. The traditional DIY market will lose share – its dollar volume is flat.

“The market share of non-dealers, or independents, represents the largest sector or 57 percent and will continue to grow – gaining 1 point market share, which represents $9 billion in growth over the next 10 years.”

Long noted how consumer expectations are growing. “Today’s consumers are perhaps the most informed, most savvy shoppers than ever before.

When they take their vehicles in for service, whether scheduled or unscheduled, they expect a great experience. They want the service provider to know their profile and their vehicle’s service history, and they expect real-time quotes, a full explanation of service, speedy checkout and more.”

Long commented on how connectivity will present both opportunity and some risks.

“We, along with other industry stakeholders, are working together to address industry needs and have created a stated principles document defining industry needs that support freedom of choice for the motorist.

“This is not simply who owns the data. This is about creating a level playing field that will enable independent service providers to perform the same maintenance and repair as offered by the car manufacturer and their dealer network, providing motorists the freedom of choice.

“I’d be remiss if I failed to extend an invitation to all of you to visit the AASA Know Your Parts exhibit at booth No. 34001. Our big news for 2015, highlighted in the booth, is KYPTechline.com Web app and the Diagnostic eLearning Tool at www.KYPgenius.com. KYPTechline, launching at AAPEX, allows service professionals to use their mobile devices to search for and call the technical hotlines for the aftermarket’s most trusted brands.”