Could the aftermarket parts industry be on the cusp of a growth period?
According to Commercial Motor Vehicle Consulting (CMVC) a positive turnaround is possible. CMVC reported Tuesday its CV Parts Aftermarket Sales Leading Indicator (PLI) was up 0.3% in November and 0.1% in December, a sudden and welcome shift after more than 18 months of negative readings.
CMVC says these higher numbers indicate PLI is signaling higher commercial vehicle parts aftermarket sales in the coming months.
“Line haul fleets have brought capacity in equilibrium with the freight environment, which has reduced the number of trucks in operation from the same period a year earlier, but increases in truck utilization indicates that trucks are depreciating at accelerating rates supporting a recovery in commercial vehicle parts aftermarket sales,” says Chris Brady, CMVC president. “The line haul segment is no longer are drag on parts aftermarket sales as higher truck utilization is accelerating the rate at which trucks depreciate.
[RELATED: MacKay & Company sees tepid growth potential for aftermarket in 2025]
Brady had predicted this market correction during a webinar with MEMA late last year.
“This is the first phase of a recovery in parts aftermarket sales, which will be followed by an expansion in the number of trucks in operations as expanding freight volumes decrease spare capacity requiring line haul fleets to expand capacity to meet higher freight volumes,” he adds.
