By Mark Phillips
WEST PALM BEACH, Fla. — Kathleen Schmatz is sick of hearing bad news about the United States and its economy, not because she’s sensitive to it but because there’s obvious good news that gets ignored.
“You really can’t avoid the bad news because we’ve heard a ton of it,” said Schmatz, president and CEO of the Automotive Aftermarket Industry Association. Schmatz made her remarks during an after-dinner presentation Monday at Northwood University’s West Palm Peach, Fla., campus, in conjunction with the school’s week-long Leadership 2.0 spring session. “I’ve had enough and I hope you have, too… Let’s talk about what’s going well. Let’s cut ourselves a collective break.”
There’s plenty to be happy about in the U.S., she said.
The economies of some of the largest states in the U.S. rank right up there with entire countries. California, for example, has a GDP that makes it the 10th-largest economy in the world. Texas is the 15th-largest economy in the world. And the aftermarket is contributing greatly to this country’s economy, she said, adding the industry comprises nearly 2.5 percent of the gross domestic product (GDP).
Gloom and doom about the mortgage crisis? More than 92 percent of homeowners are paying their mortgages on time, according to the Mortgage Bankers Association.
Stock market concerns? The U.S. markets recently capped their largest rally since 1933, according to Bloomberg news service.
“What’s the silver lining? The aftermarket industry certainly has felt the pinch of the economy, particularly the manufacturers that have a stake in the OE. But their aftermarket side has been growing,” Schmatz said. “Even though we’ve had some very tough times, the automotive aftermarket industry has grown in every one of the last eight years.”
Recent studies have indicated that the aftermarket industry is getting a boost as motorists get their vehicles repaired in order to keep their current vehicles on the road longer.
“I think the planets are aligning,” Schmatz said. “This could be the very best time to be in the aftermarket. Consumers aren’t buying new cars and are taking better care of the vehicles they have.”
About 2,000 auto dealerships are expected to close in 2009 alone. “Many repair shops are experiencing robust business,” Schmatz said. “Every time a new car dealer closes, it’s an opportunity for the aftermarket to grow.”
ABOUT THE AUTHOR
Mark Phillips joined Babcox Publications in 2008. He is Editor of Counterman magazine.
