Good news for automotive students: The U.S. automotive aftermarket is expected to grow on a compound annual growth rate (CAGR) of 3.4 percent until 2017.
For young auto professionals, that could mean increased employment opportunities, as the growth translates into more service and repairs at shops and dealerships.
According to the “2014 Joint Channel Forecast Model,” produced jointly by the Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association, the total aftermarket sales are predicted to grow from $238.4 billion in 2013 to $273.4 billion in 2017, an increase of $35 billion over the four year period.
“The forecast model demonstrates that despite strong new vehicle sales, historic high gas prices and a flattening of miles driven, our industry is poised for steady growth,” said Kathleen Schmatz, Auto Care Association president and CEO. “Why? The average age of vehicles is 11.4 years, the oldest ever, and the age mix of vehicles continues to favor older vehicles, creating a robust sweet spot for service and repair.”
“The forecast model anticipates that growth in population, employment and income will lead to an increase in miles driven and the number of vehicles on the road resulting in long term aftermarket growth,” said Bill Long, AASA president and COO. “The Channel Forecast Model is a tool to help participants achieve that growth despite some of the major market shifts facing our industry such as vehicle telematics, increasing vehicle technology, new-model introductions and parts proliferation.”
The market sizing and forecast is conducted on behalf of AASA and the Auto Care Association by IHS – driven by Polk, the renowned economic and market information firm. It is based on the U.S. Census Bureau’s Economic Census, IMR and Polk data, and proprietary IHS economic analysis and forecasting models.
The Joint Channel Forecast Model is available at the AASA website, www.aftermarketsuppliers.org, and in the Auto Care Association’s 2015 Digital Auto Care Factbook, available at www.autocare.org.