If you haven’t yet noticed, we are in the midst of a massive consolidation of the truck dealer market.
The total number of medium- and heavy-duty truck dealers has been on the decline for a while, but in the past year the rate has increased significantly. No single OEM has been resistant to the consolidation, and in some cases, the changes have occurred at such a rapid pace that rarely more than a week goes by without news of another ownership change.
Most of the changes have been relatively small—single- or two-location dealers selling to larger, more established groups—but if you look back at the last two years or so, you can find a fair number of sizable, multi-facility transactions.
The independent aftermarket hasn’t been immune to consolidation during the same period, though we haven’t seen anything close to what’s going on with truck dealers.
I think that’s a good thing.
For the most part, the independent aftermarket operates on a smaller scale than truck dealers. Most distributors have fewer locations and employees, and while they commonly serve a wider variety of customers, the conventional aftermarket customer typically has fewer trucks than the fleets relying on medium- and heavy-duty truck dealers.
A smaller carrier or owner-operator requires a different level of service than what’s expected from a dealer, and the independent aftermarket has prospered for as long as it has because the businesses within it are best suited to provide that service.
