Auto Parts Manufacturing in the US Industry Market Research Report from IBISWorld Has Been Updated

While its close ties with automakers have proven to be detrimental in the past, the automotive sector's recovery will boost industry revenue in the next five years; still, operators will need to keep their eyes on the road ahead, with global competition subduing domestic demand. For these reasons, industry research firm IBISWorld has updated a report on the Auto Parts Manufacturing Industry in its growing industry report collection.

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Auto parts manufacturers will recover in line with the overall auto sector.

New York, NY (PRWEB) March 17, 2014

Auto parts manufacturers endured a tumultuous year in 2009 as automakers, the industry's largest customer, suffered declining sales during the economic downturn. In that year, cash-strapped consumers delayed purchasing big-ticket items, including cars. As a result, demand from motor vehicle manufacturing plummeted. Due to demand for vehicles rebounding in 2010 in response to rising consumer sentiment, auto parts manufacturing plants ramped up production. As this trend continues, industry revenue is expected to increase at a significant annualized rate over the five years to 2014.

Automakers' troubles, especially those of General Motors and Chrysler, came from preexisting structural issues, such as high labor costs, excess production capacity and weak product offerings. These structural issues, according to IBISWorld Industry Analyst Brandon Ruiz, “along with declining demand for automobiles during the recession, exacerbated the problem for industry participants.” For example, “two of the largest auto parts manufacturers, Delphi and Visteon, struggled significantly during the period due to these conditions: Visteon sought Chapter 11 bankruptcy in May 2009, just months before Delphi exited a five-year stint in bankruptcy,” says Ruiz.

Fortunately, the downturn is expected to yield long-term benefits across the automotive sector; the recession forced automakers to cut costs, such as labor, and automakers are expected to be more profitable going forward. Furthermore, industry revenue is expected to grow in 2014 as consumer sentiment increases and consumers purchase more big-ticket items. These trends will bode well for the industry in the long run: the greater the demand for vehicles, the greater the demand for industry products. To this end, industry revenue is projected to climb at an annualized rate from 2014 to 2019.

Concentration in the Auto Parts Manufacturing Industry is low. In the five years to 2019, a full automaker recovery will drive industry growth. IBISWorld expects new car sales to slightly increase at an annualized rate over this period as consumer sentiment rises. Additionally, scheduled increases in fuel economy regulations will encourage auto parts manufacturers to develop lightweight, more efficient vehicle systems. Moreover, possible regulation of carbon dioxide emissions from vehicles would require expanded exhaust system capabilities. As such, auto parts manufacturers that are involved in developing these types of vehicle components have a smoother road ahead.

For more information, visit IBISWorld’s Auto Parts Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in the Auto Parts Manufacturing Industry manufacture and rebuild a variety of motor vehicle parts and accessories. These parts include air bags, air-conditioners, catalytic converters, engine exhaust systems, mufflers and resonators, radiators, radiator cores and wheels.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.


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  • Gavin Smith
    IBISWorld
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