Truck Parts and Service | Heavy Duty Trucking, Aftermarket, Service Info
Issue link: http://read.dmtmag.com/i/723429
18 on the fi rm's latest survey of U.S. and Canadian buyers and sellers. Heavy-duty distributors represent 19 percent of the market, with the remaining share made up of independent garages at nine per- cent; engine manufacturers and dealers at eight percent; specialists at six percent and parts distributors at four percent. Greg Klein, president of Inland Truck Parts, says his company's growth can re- ally be attributed to adding truck service centers over the past 20 years. Now, they add one to two new locations each year. Inland has even added its own stand alone, state-of-the-art training facility with dedicated technicians hired solely for training purposes. According to MacKay & Company, the number of service centers is expand- ing, becoming a signifi cant growth area for distributors. The total Class 6-8 aftermarket represents $107 billion, with half – $53.5 billion – on service labor. While parts ($30 billion) and tires ($16 billion) are a signifi cant part of the total aftermarket, they are insignifi cant in comparison to the size of the service por- tion of the business. "You have to grow these people internally," Klein says. "Technology is here to stay and customers demand a great deal of information. By having the computer software and technology avail- able, coupled with a well-trained service staff, we can stay on top of the customer's demands and needs. It takes investment and planning for the future, but that's what it takes in today's time." E-commerce is here to stay By preparing for today's market, dis- tributors must look into areas that are constantly evolving – such as has been the case with e-commerce. Blodgett notes that 2015 inventory levels in the industry were lower than that of 2014. He says MacKay & Com- pany does not have specifi c statistics related to the growth of e-commerce, but he believes it's playing a pivotal role in growth of certain distributors. "I would certainly agree that it's a major role," he says. According to a recent report by the Auto Care Association, e-commerce in the automotive aftermarket is the fastest growing channel for distribution and is expected to double in size to $13.2 billion by 2018, up from $6 billion in 2013. Trends that aggressively start in the light vehicle market often make their way into the commercial vehicle industry, Gryzenia says. "Because of new industry dynamics, including the rise of megadealers and e-commerce, the historic rules of the commercial vehicle aftermarket are changing rapidly. With the distribution model becoming much less restrictive, it is possible that the methods for delivery will change, making it easier for innova- tive thinkers to bring in new ideas on how to make the business model more effi cient, user-friendly and especially cost-effective," he says. (Re)man up Remanufactured parts are another growth opportunity for distributors. More and more options are now avail- able for reman parts, particularly in electronics, an area that had been consid- erably behind. Electronics is one of the highest growth segments in remanufacturing. According to the Automotive Parts Remanufacturing Association (APRA), electronics now represent more than 30 percent of the average automotive ve- hicle's content, and commercial vehicles are heading in the same direction. It is a signifi cant growth area for the commercial vehicle market, but it is also highly specialized. Some of the biggest brands are becoming key players, includ- ing Detroit Diesel, Caterpillar, Cummins, Delphi and Robert Bosch. Electronics could begin to compete with powertrain components for the fastest growing area in remanufacturing. "Staying on top of trends and how it affects their business is a key component to growing distributorships," Phipps says. "Being able to put theories and trends into play on the roads is what makes them successful and grow." T R U C K P A R T S & S E R V I C E | S e p t e m b e r 2 0 1 6 Cover Story Technology is here to stay and customers demand a great deal of information. It takes investment and planning for the future, but that's what it takes in today's time. – Greg Klein, president of Inland Truck Parts Because of new industry dynamics, including the rise of megadealers and e-commerce, the historic rules of the commercial vehicle aftermarket are changing rapidly. – Bill Gryzenia, chief executive offi cer of AxleTech International