Truck Parts and Service | Heavy Duty Trucking, Aftermarket, Service Info
Issue link: https://read.dmtmag.com/i/946299
12 HDAW News As Truck Parts & Service reported in January, last year was a good one for the heavy-duty aftermarket. During a presentation at Heavy Duty Aftermarket Dialogue before Heavy Duty Aftermarket Week, John Blodgett and Ken Griswold of MacKay & Company announced the United States and Canadian aftermarkets grew by 3.1 and 9.2 percent, re- spectively, in 2017, and both markets appear well-positioned to maintain that strength in the immediate years to come. Going back to last year's Aftermarket Dialogue, Blodgett says MacKay & Company data estimated the U.S. aftermarket in 2016 at $30.2 billion and predicted 2017 at $30.6 billion. He says both numbers were actually lower ($29.5 billion and $30.4 billion) but the year-over-year improvement was stronger than the original expectation. The company's numbers were similar for Canada, with 2016 fi nishing at $3.9 billion and 2017 clock- ing in at $4.2 billion. In both countries, the year-over-year improvements were signifi cant and immediate. Dealer parts sales gained 7.6 percent year-over-year in January and kept up that hot stretch for the entire year, never having a single month fall behind 2016 pace. At independent stores the story was similar. January was an increase of 3.6 percent year-over-year and again each month in 2017 was better than the prior year. Along those lines, the duo says MacKay & Company's Aftermarket Index shows the U.S. aftermarket was up 4.7 per- cent in 2017 through November and 12.1 percent in Canada. Compared to fl at and down years in the U.S. and Canada with the index the last two years, the aftermarket outperformed in all markets in 2017, Griswold says. Additionally, Blodgett says the new truck market exploded in 2017 at a rate well ahead of last year's projections and, in the U.S., he expects that boom to continue for 2018. Forecasting out from there, MacKay & Company pegs the new vehicle mar- ket for both countries to run slightly ahead of 20-year averages. That jump should help vehicle utilization as well. MacKay & Company is forecasting the U.S. aftermarket at $30.8 billion, $31.6 billion and $32.8 billion through 2020. Through 2022, that forecast features a 2.8 percent compounded annual growth rate (CAGR) for the U.S. and 4.4 percent in Canada. T R U C K P A R T S & S E R V I C E | F e b r u a r y 2 0 1 8 After big 2017, MacKay & Company says aftermarket in good shape for 2018 MacKay & Company data shows the heavy-duty aftermarket industry grew by 3.1 percent in the U.S. and 9.2 percent in Canada in 2017. The Commercial Vehicle Solutions Net- work (CVSN) and GenNext are joining up to strengthen their support of the independent aftermarket. The two groups announced at Heavy Duty Aftermarket Week that they have signed a Memorandum of Understand- ing (MOU) to bring GenNext's events and activities underneath the CVSN umbrella of services. Immediately following the jointly host- ed Distributor Training Expo (DTE) in April in Atlanta, CVSN will take over the administration of GenNext membership. "Over the last three years, GenNext has gained much recognition for bring- ing innovative ideas to industry events, including the creation of the DTE. We helped start the HDAW Northwood Program, which has sponsored many students to attend the industry's largest trade show. We also have offered numer- ous mentoring and educational opportu- nities to our membership," says GenNext President Ian Johnston of Harman HVS. "As we align ourselves closer to CVSN, we feel they offer an excellent base of members who will be able to utilize our services, enhancing the effectiveness of GenNext for years to come." Johnston says under this MOU, Gen- Next will remain a standalone entity with its own board but will sit under the umbrella of CVSN. This partnership will elevate the po- tential of the groups, he says, and should allow both entities to better recruit new members and increase its visibility within the aftermarket. CVSN, GenNext joining forces