Not an afterthought: Aftermarket revenues increase by $4 billion

Automotive aftermarket product and service volume in the U.S. reached $151.2 billion during 2000, a $4 billion increase over 1999 in current dollars at user-price (the price paid by ultimate consumers of products and services).

In its Aftermarket Annual 2001, Lang Marketing (www.langmarketing.com) reports that 2000 aftermarket product sales in the U.S. totaled $110.4 billion, with purchased service reaching $40.8 billion. Automotive aftermarket product volume includes all products used in the repair, maintenance, and modification of cars, light trucks, and heavy trucks as well as all other types of engines, boats, off-road equipment, machinery, industrial use, and related product consumption.

Purchased service represents all labor costs paid by end-users but does not include the cost of labor performed in-house by fleets and other operations in their service facilities or labor for which no charge is made such as automotive Do-It-Yourself labor.

Total aftermarket volume (products and services) increased 2.7% in current dollars during 2000, less than the 3.7% gain in 1999. Aftermarket product sales grew 2.4% at user-price during 2000, a slower pace than the 1999 product increase of 3.4%. Aftermarket product growth was relatively strong during the first six months of 2000, but rising gasoline prices and reduced driving dampened aftermarket product sales during the last half of the year. Purchased service for the installation of aftermarket products rose 3.6% during 2000.

Aftermarket segments recorded mixed results with light trucks, foreign vehicles, and service market work (installation by mechanics) achieving strong increases in 2000 aftermarket product volume. In contrast, a decline in domestic passenger car product volume and nearly flat DIY sales partially offset these gains. The net result was the lowest current dollar sales increase for aftermarket products since 1995.

Not included in this analysis of the 2000 aftermarket are vehicle body parts, crash parts, glass, communication equipment, sound accessories, audio equipment, fuel, tires, and miscellaneous accessories as well as labor expenditures relating to these excluded products.