In our previous “Ask the Industry” column, we asked a number of aftermarket companies what tools they use to make future business projections. In a mature industry that is constantly in a state of flux, it is important to use all the tools available to help ensure stability, growth and success. One such tool is vehicle trend data.

There have been a number of trends in recent years — such as the growth in sales of trucks and SUVs, growth in sales of import nameplates and an increase in average vehicle age – which are influencing inventory and pricing decisions, as well as project replacement rates, said Larry Pavey, who recently joined Federated Auto Parts as a corporate advisor. Pavey said that one of the ways Federated helps its members and jobber customers is by helping them navigate the latest industry trends.

“Federated is dedicated to helping its members and their jobber customers stay abreast of trends that will impact their businesses, assisting them in areas such as forecasting sales trends and improving their inventory management,” said Pavey. “In addition, vehicle trend data is used to develop Federated marketing plans, including its national advertising, promotional programs and the Federated Car Care Center program that is supported by thousands of installers nationwide. As an example, Federated’s support of NASCAR truck racing events allows members to capitalize on the tremendous growth in truck registrations and the growing enthusiast market. Vehicle data is also a major consideration in the development of Federated training programs. By identifying trends in vehicle sales and registrations, along with tracking new technology and its impact on the repair market, Federated can continue to expand its leading training programs at both the installer and jobber levels.”

One of the biggest trends to emerge in recent years is the increasing popularity of foreign nameplate vehicles. This bodes well for a manufacturer like Beck/Arnley, which provides import replacement parts. According to Anne Coffin, vice president of IT and marketing and CIO of the company, Beck/Arnley uses vehicle trend data, specifically related to the foreign nameplate trend, to help show its channel partners that they may be missing sales opportunities by not recognizing what the trend data is telling them with regard to the importance of foreign nameplates.

“At a more granular level,” Coffin added, “we can work with our partners to understand what vehicles in their markets are more popular, as it is certainly not the same in every area. By understanding the data, they can stock appropriate inventories, which helps all of us.”

The increasing presence of foreign nameplate vehicles on U.S. roads today also piques the interest of BOSAL USA. According to National Sales Manager Patrick Suiter, BOSAL is keeping a close eye on this trend.

“We have been tracking with considerable interest the trend toward increasing import nameplate sales in the U.S,” said Suiter. “As these vehicles age, we believe that our target market is expanding almost exponentially. Any information that we find displaying this trend is added to our marketing materials. General vehicle sales data is also used, as what sells a lot today will be in higher demand in the aftermarket later. Any information related to premature failure or recall data is also useful when forecasting a few years out.

“The trend data I have seen indicates that the import repair specialist in general has a belief in and preference for the OE brand when choosing what parts to use in his repairs. With the import market increasing so rapidly, and the number of import repair facilities growing likewise, BOSAL feels that we are in a good position to increase our share. The WD that feels he is doesn’t need the import brand because "he isn’t getting the calls for it" may be missing the point. He may indeed not be getting the calls, but that doesn’t mean the import brand isn’t being sold. That WD isn’t getting the calls because the import repair specialist is going where he can find the import brand to service his customers. If a WD doesn’t have it, then why would he get the call? And this of course means that any accompanying sales to that particular job are lost too. The trend data relating to this and other facts pertaining to the import market is very helpful to our marketing strategy now.”

Many other companies we spoke with have parlayed their work on the OE side of the business into creating a future foothold in the aftermarket. According Michael Scheiven, director, Aftermarket Channel, Philips Automotive Lighting North America, his company uses various market surveys and statistical data such as vehicle registrations, regional and local vehicle parc segmentation to determine best portfolio composition for its customers. However, in addition, Schieven added that the company’s global OEM activities also shed light on the needs and trends in the marketplace, allowing them to project future product characteristics before the first light source is actually installed in a vehicle.

Siemens VDO is another company that uses its work on the OE side to provide insight into the future demands of the aftermarket. Sean Stanic, vice president of sales and marketing for Siemens VDO’s Service & Special Solutions group, said vehicle trend data is a marketing tool for the company. “It is [how and why] we are working on launching products and offering products that our customers will want/need before they even know they will want/need it. Further, we are bringing these products to the aftermarket with the intelligence of an OE supplier.”