Representatives from all aftermarket industry channels gathered in Deerfield, Ill., last month for the 32nd annual Truck Parts Seminar, presented by this magazine.
The title of this year’s program was “Aftermarket Survival Guide,” and it brought together manufacturers, fleet executives, distributors and marketing groups to discuss challenges the industry is facing now and those it will encounter over the next few years. While there are no easy answers in the increasingly complex heavy-duty truck aftermarket, industry-wide cooperation and brainstorming bring an abundance of resources and perspectives to the table. And that helps everyone develop efficient, profitable strategies.
Chief among the topics addressed at the forum was globalization. Here are some interesting facts, ideas and observations speakers presented:
- A fully machined Chinese rotor can be landed in North America for less than the cost of a large pizza.
- The automobile with the most domestic content is the Toyota Tundra.
- In the old customer-attitude model, “made in America” mattered. In the new paradigm, where manufacturers are international businesses with plants spread across the globe, country of origin doesn’t matter. Quality parts can come from anywhere.
- Counterfeit and will-fit parts remain major concerns.
- Disorigination is taking hold. Derived from the 1990s Internet term “disintermediate,” which means to take steps out of the supply chain, disoriginate refers to the practice of warehouse distributors sourcing with non-traditional product originators – manufacturers – and purchasing from low-cost, off-shore suppliers.
- New suppliers represent about 20 percent of the market versus established suppliers; 10 years ago it was 10 percent. Warehouse distributors take on 80 percent of new entry product.
- Auto parts distribution networks are looking at the $15 billion heavy-duty parts inventory and salivating. These mega-distributors want to leverage their brands, experience and infrastructure. According to DataMonitor, the medium- and heavy-duty truck aftermarket has grown more strongly than the automotive aftermarket since 2004.
The bottom line for you as a truck parts and service provider is that your customers trust you to provide quality products regardless of where they’re made or what brand they are. If you purchase imported products, partnering with reputable manufacturers or importers is critical. With the proliferation of manufacturers, suppliers and supply channels, your business’s good name could be in danger if you don’t navigate the global market carefully.
