The worst of the post-pandemic supply chain crisis is over but its impact loomed large last week during Heavy Duty Aftermarket Dialogue, presented by MacKay & Company and MEMA, and into Heavy Duty Aftermarket Week (HDAW) in Grapevine, Texas.
Sales success notwithstanding, it’s clear no one in the parts business wants to experience the procurement headaches of 2021 and 2022 again. Chasing down parts in ideal circumstances is tough enough, but consistently struggling or failing to meet customer demand during the industry’s last market peak has left a scar in the aftermarket.
And with the threat of President Donald J. Trump levying tariffs against goods from China, Canada and Mexico now looming like a wild card over the industry, sentiment in Grapevine last week was clear — availability will be the biggest driver of purchasing decisions this year.
To their credit, industry vendors not only acknowledged that expectation but also shared proactive plans to manage tariffs and supply chain disruptions, if they occur, during last week’s events.
[RELATED: What tariffs could mean for equipment and parts pricing]
During a Dialogue panel discussion, representatives from Grote, SAF-Holland and STEMCO shared how shoring up their supply chains since 2022 have made them more nimble and agile to address procurement volatility if it reappears in 2025. The vendors also touched on their experiences under the first Trump administration, and how they can use what they learned during that period to keep their supply chains operational if tariffs return.
Suppliers say they have advantages today they didn’t have in 2017.
STEMCO’s Chip Stuhr said advancements in artificial intelligence and inventory analytics mean vendors now can monitor demand in real-time and alter production schedules to keep high-volume parts on shelves. SAF-Holland’s Matt Wolfe says efforts to nearshore raw materials and production will help as well, presuming tariffs don’t force all industries to source from a limited area.
The suppliers said they’ve learned from customers too. Distributors, and fleets especially, are not buying in bulk like they did three years ago and don’t want to return to that tactic unless it’s necessary to avoid downtime. The vendors said they understand that, and recognize it is their responsibility to enhance their inventory capabilities accordingly.
“[Customers] have leaned out inventory and expect us to have it like Amazon,” said Wolfe.
And the aftermarket’s allusions to Amazon don’t end there. During another Dialogue session Dave Kalvelage with MacKay & Company shared fleet adoption of e-commerce continues to grow, mostly on the strength of sales from truck and trailer dealer operations.
Customers have grown accustomed to being able to check availability, price and delivery times online from their parts partners and ordering from the source that best fits their needs. Any upheaval of the supply chain will only enhance the desire to stay informed, fleets said at Dialogue.
“Get your sales force back in front of your customers,” said Nick Forte with Stevens Transport. “You’re not going to win anything if you don't do that.”
Distributors voiced availability concerns last week as well, both in more MacKay & Company survey data reported by Kalvelage and in another Dialogue segment.
“We’ve got to be prepared for all contingencies,” Kenworth Sales Company President Kyle Treadway said during a distributor panel. Citing “inventory management” as his biggest concern for the year, Treadway added, “What we’re entering into is kind of a redux of what we went through in 2020 and 2021.”
Rush’s Larry Gruendike and TruckPro’s Chuck Broadus were on a panel with Treadway and both agreed. The trio said the fragility of a just-in-time supply chain means “it only takes one break to leave the customer hanging,” Gruendike said.
The good news for everyone across the aftermarket distribution space is most customers aren’t just hunting for one brand.
Forte and his fellow panelists Amanda Schuier with Jetco Delivery and Joe Phillips with Eagle Transport shared their fondness for aftermarket components. The panelists admitted there are some categories where they remain committed to OE direct replacement parts, but said in other areas they actually prefer aftermarket makes and models.
“I can get quality, better products,” Forte said.
Expanding aftermarket lines was a point of emphasis during the HDAW trade show, too. SAF-Holland announced a rebrand and expansion of its reman operations during the event, while Cummins announced the continued growth of its independent-distributor exclusive aftermarket brand, Euclid.
How well these efforts ultimately fare against any tariffs or unforeseen supply chain pressures remain to be seen. But as January concludes, it’s clear another availability crisis won’t sneak up on the aftermarket in 2025 like it did a few years ago.
