As a ‘mature’ industry, the automotive aftermarket went through an active period of consolidation in the late 90s and early 2000s, particularly in the distribution sector, as well as in manufacturing. This began to slow down for a few years as a number of factors began to impact the national and global economy rising raw material costs, high gas prices, price pressures and competition from overseas, just to name a few.
Now in the midst of a full economic crisis, aftermarket companies are looking to shed non-core assets, while others are looking to take advantage of these sell-offs to build and expand their portfolios. We wanted to get a better sense of where the consolidation trend is headed today. Are we headed for another wave of consolidations?
According to our most recent AMN poll, 73 percent of readers say yes, consolidation will increase. Less than five percent believe it will slow down. The remaining 22 percent feel the market is too volatile to make predictions.
THIS WEEK’S POLL
Telematics was a hot topic earlier this month at the Automotive Distribution Network’s annual member convention. The driving public may be most familiar with one telematics device in particular — GM’s OnStar. We’re curious about its use and popularity today. Tell us: Do you currently subscribe to a service like OnStar?
To cast your vote, go to aftermarketNews.com and scroll to the “Poll” section at the bottom of the page.