The past 12-plus months have highlighted the automotive aftermarket as an essential industry and one very ready to transcend the “new normal” to simply return to the way things were.
There are some challenges in trying to get the pendulum swinging back in the right direction. The continued lapse in rush hour and the daily commute is not great news for the aftermarket. Miles driven saw a more than 13 percent decrease last year, leaving shops bracing for the worst. Many companies rolled out long-term flexible working situations that allowed the daily grind to happen from home. In many industry segments, this culture change is taking root going forward, with more than 20 percent of companies surveyed in a recent Upwork poll stating that a remote working structure in some form will continue at least through 2025.
Despite these challenges, miles driven are slowly ticking upward, closer to pre-pandemic levels.
And as multiple aftermarket associations have reported in recent months, several trends are impacting the demand for vehicle service and repairs. Personal vehicle ownership is on the rise, with The New York Times even calling out the pandemic’s impact on automobiles, dubbing it the “ultimate P.P.E.” and instrumental in fostering a “society on wheels.”
There’s been a large shift toward purchasing trucks and crossovers, which is good for aftermarket dollar growth, as maintenance and repair is typically more expensive for these types of vehicles.
Used car sales grew in 2020, and the average age of vehicles on the road — currently 11.9 years — is expected to climb even higher in 2021, a great trend for U.S. shops.
People are less comfortable using mass transit and ride-hailing services, with Uber and Lyft each seeing sales declines in 2020 of more than 70 percent when compared to 2019 levels. Urban populations, which typically rely on less vehicle ownership and more public transportation, are continuing their mass exodus into the suburbs, where having a vehicle is often a very important part of navigating daily life.
Months of quarantining, curfew, and stay-at-home orders have exhausted the patience of even the most skilled homebody. Americans are venturing out — taking road trips, renting RVs for family vacations, and putting the pedal to the metal to reach any destination other than the four walls of their home.
Not all motoring trends and behaviors will go back to what they once were, but our readers tell us that profit margins and revenue are returning to — and beyond — levels seen in early 2020. As reported in last month’s Aftermarket Profile, more than half of the PTEN shop owners surveyed anticipate higher overall revenue in 2021 when compared to last year. Hopefully, this is translating into more tool and equipment investments with our Professional Distributor readers, as well. So maybe this is, in fact, the start of a “new” normal — one that brings more stable success for all.
