News: USA - Frost & Sullivan finds replacement opportunities fuel growth in the North American
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.
Friday, 13th February 2009
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 (http://www.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 e-mail to David Escalante (email@example.com), with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail. "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.