Auto Parts Manufacturing Industry Trends

Globalization

Demand for auto parts is increasing due to Americans owning more vehicles, driving more miles every year, and keeping vehicles longer. More than 60 percent of vehicles operating in the US are more than seven years old, and require more maintenance and repairs than newer ones, according to the National Automobile Dealers Association (NADA).

Aftermarket Sales Grow Slowly

Sales of aftermarket replacement parts and products are expected to increase slowly. Although the number of used cars is expected to increase substantially due to the large number of new cars that are leased, better engineering is producing cars that last longer without major overhauls. The rate of personal vehicle tune-ups dropped from 60 percent in 1996 to 40 percent in 2000, a decline that reflects both changing automotive technology, such as onboard diagnostic computers, and car owners delaying discretionary automotive maintenance.

R&D Shifts to Suppliers

As big car companies concentrate on styling, marketing, and engines, part suppliers are advancing technology in many car components. Just as anti-lock brakes are now standard on many cars, parts companies believe that the computer-controlled, electronically operated systems they're developing will be popular for transmissions and steering.

Quality Control

Many manufacturers require their suppliers to comply with QS9000 (quality control certification), a manufacturing standard guide. QS9000 demands evidence of continuous quality improvement, and is therefore more stringent than the better-known ISO9000.