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Growth Opportunities in the North American Heavy-duty Truck Aftermarket Driven by Technology - Consolidation characterizes the current business environment in the North American heavy-duty truck aftermarket. The aftermarket continues to witness greater truck complexity, a declining skilled worker population and distribution channel cost compression
Growth Opportunities in the North American Heavy-duty Truck Aftermarket Driven by Technology

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2008/04/21 - Consolidation characterizes the current business environment in the North American heavy-duty truck aftermarket. The aftermarket continues to witness greater truck complexity, a declining skilled worker population and distribution channel cost compression.

   
 
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New analysis from Frost & Sullivan (automotive.frost.com), Strategic Overview of the North American Heavy Duty Truck Aftermarket, finds that demand for on-road freight hauling continues to rise along with the number of vehicles. The number of class 3-8 commercial vehicles is rising at a CAGR of 2.0% and is forecast to top 11.4 million by 2014. This study examines the various challenges facing the heavy-duty repair and service industries and highlights where participants need to direct their focus to sustain market growth.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an outline of the Strategic Overview of the North American Heavy Duty Truck Aftermarket, then send an email to Sara Villarruel, Corporate Communications, at sara.villarruel[.]frost.com, your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

"The North American heavy-duty truck aftermarket is faced with a multitude of challenges and opportunities related to service, distribution, consolidation and advanced technology domains," notes Frost & Sullivan Consultant Mary-Beth Kellenberger. "The future of the aftermarket will depend greatly on the agility shown by market participants to integrate advanced technologies that complement service and maintenance initiatives, reduce downtime, offer greater control on supply chain and distribution flows, and manage inventory."

Technology drives revenue opportunities in this market and needs to be used extensively to meet the challenge posed by the technician shortage. Advanced diagnostics and prognostics capabilities can help meet service and maintenance demands while also helping to reduce downtime. Technology accelerates the distribution flow and creates standardized operating procedures that increase efficiencies and provide insight into the entire supply chain. Therefore, technology helps to control supply chain variability.

Due to increased consolidation within the heavy-duty aftermarket parts and service structures, distribution mechanisms and flow channels struggle to cope with downtime and cost issues associated with this change.

"Moreover, original equipment service (OES) channels are amassing a greater share of the aftermarket revenues, driven by the increasing prevalence of proprietary technologies in commercial vehicles," notes Frost & Sullivan Program Manager Sandeep Kar. "That being said, OES channels are struggling to keep up with demand, thereby offering opportunities for independents to partner with these channels to support their businesses."

"In addition, increasing distributed electronic content in commercial vehicles is forcing the need for new technology and equipment acquisitions by product and service providers, in turn inflating product and service costs," says Kar. "There is also a need to streamline the parts distribution structure to improve product and service flow."

Market conditions demand strategies that provide cost-effective technology integration of the aftermarket distribution system, product development and service flow. Over the short to medium term, consolidations will continue to influence the demand from large fleets. However, independent suppliers and providers of service, maintenance, and parts must retain their interest in small-medium sized fleets and owner-operators who aim to reduce the downtime of their mobile resources.

Tremendous growth opportunities exist for companies that cater to the product and service needs of local markets and the smaller and medium sized fleets with a broad spectrum of vehicles.

Strategic Overview of the North American Heavy Duty Truck Aftermarket is part of the Automotive & Transportation Growth Partnership Service which also includes research in the following markets: light vehicle replacement components, as well as a growing list of heavy duty vehicle related studies including powertrain, filtration, chassis, and HVAC. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting, and Career Best Practices empower clients to create a growth focused culture that generates, evaluates, and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from more than 30 offices on six continents.

Strategic Overview of the North American Heavy Duty Truck Aftermarket N35D

 
 
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Growth Opportunities in the North American Heavy-duty Truck Aftermarket Driven by Technology

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