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Frost & Sullivan Finds Replacement Opportunities Fuel Growth in the North American Starters and Alternators Aftermarket - The demand from older vehicles continues to fuel replacement opportunities, especially for starters and alternators. Remanufacturing has evolved steadily over the years in North America
Frost & Sullivan Finds Replacement Opportunities Fuel Growth in the North American Starters and Alternators Aftermarket

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2009/02/12 - The demand from older vehicles continues to fuel replacement opportunities, especially for starters and alternators. Remanufacturing has evolved steadily over the years in North America.

   
 
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The advent of technologies that include electronic stability control has triggered an increase in new part numbers in the starters and alternators category, especially for import vehicle brands. This drives unit shipments because distributors have to purchase more parts in order to cover these vehicle models.

New analysis from Frost & Sullivan (automotive.frost.com), North American Starters and Alternators Aftermarket, finds that the market earned revenues of $1.36 billion in 2007 and estimates this to reach $1.27 billion in 2014.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the North American starters and alternators aftermarket, then send an email to David Escalante, Corporate Communications, at david.escalante[.]frost.com, with 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 number of vehicles between 4 and 7 years of age is approximately 60 percent greater than those in the 7-to-9-year range,” says Frost & Sullivan Industry Manager Avijit Ghosh. “The replacement rate will increase over the next several years with these cars and trucks entering the aftermarket, driving unit shipments higher.”

Automakers have focused on the development of small, light vehicles that comply with Corporate Average Fuel Economy (CAFE) standards. These vehicles are more prone to higher failure rates of electronic components including starters and alternators, thus revving up the demand for replacement parts in the aftermarket.

However, rising scrap metal prices drive up core prices. Distributors are wary of tying up their money in core deposits, especially with a single supplier. If the remanufacturer is forced out of business, distributors will lose their core investment and product availability will be adversely affected. Participants in this space would be forced to procure new parts from Asia to recover their equilibrium.

On the other hand, higher raw material costs will also render Asian parts more expensive. Remanufacturers will not be affected by rising prices unlike suppliers of new starters and alternators because they benefit from the reuse of the core.

“Core devaluation is a major challenge because procurement costs have risen with the increase in prices, even as core charges are reduced because distributors do not want to pay for them,” explains Ghosh. “Market savvy distributors are gravitating towards coreless programs instead of buying new parts because remanufactured product lines enable wider application coverage.”

Trends in the aftermarket indicate a shift toward premium product lines because it is an uphill task to design numerous part numbers to include all vehicle makes and models. The preferred approach is to carry a single line, which will be the sole manufactured line, encompassing a host of vehicles with fewer inventories.

North American Starters and Alternators Aftermarket is part of the Automotive and Transportation Growth Partnership Service program, which also includes research in the following markets: United States remanufactured engine and transmission aftermarket, vehicle accessories: the next generation of automotive aftermarket growth in the United States, strategic overview of the North American heavy duty truck aftermarket, North American wiper blades and refills aftermarket. 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.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

North American Starters and Alternators Aftermarket - N437

 
 
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Frost & Sullivan Finds Replacement Opportunities Fuel Growth in the North American Starters and Alternators Aftermarket

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Frost & Sullivan |
Contact: David Escalante 
210.477.8427 david.escalante[.]frost.com
 
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