Auto Parts Stores in Canada Industry Market Research Report Now Available from IBISWorld

A decline in disposable income and employment levels during recession resulted in a greater number of consumers transforming into do-it-yourself customers, opting to perform their own vehicle maintenance and repair work to cut costs; as a result, they visited auto parts stores in greater numbers. For these reasons, industry research firm IBISWorld has added a report on the Auto Parts Stores in Canada industry to its growing industry report collection.

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Consumer demand will fall, but commercial demand will keep the industry growing.

New York, NY (PRWEB) March 28, 2014

The Auto Parts Stores industry provides widely accepted automotive parts and accessories, such as engine pumps, batteries, radiators, thermostats and brake fluid. Revenue growth is determined by demand from households and commercial clients, including gas stations, fleet operators and auto-repair shops. Bolstered by improving economic conditions, such as falling unemployment and rising disposable income, industry revenue is expected to grow at an estimated annualized rate of 0.6% to $2.9 billion, including an estimated 1.8% increase in 2014. Furthermore, profit margins (i.e. earnings before interest and taxes) are moderate for the average industry company. Margins have increased over the past five years as a result of higher selling prices.

According to IBISWorld Industry Analyst Brandon Ruiz, “The industry has largely remained resilient despite the economic downturn.” A decline in disposable income and employment levels during recession resulted in a greater number of consumers transforming into do-it-yourself customers, opting to perform their own vehicle maintenance and repair work to cut costs. As a result, they visited auto parts stores in greater numbers. At the same time, the poor economic climate limited demand from commercial clients, such as automotive manufacturers, which rely on strong economic conditions to increase production. In other words, the same conditions (i.e. low disposable income and employment rates) that spurred consumer demand for industry products reduced demand from commercial clients. As the economy continues to improve, the reverse is expected, with demand from commercial clients increasing, while demand from consumers declining.

Revenue is projected to remain stable over the next five years. “Disposable income and employment levels will continue to rise, resulting in weaker demand from consumers, but stronger demand from commercial clients,” says Ruiz. Moreover, the number of motor vehicle registrations is expected trend higher. As a result, the potential size of the auto replacement part market will increase, benefiting industry operators. From 2014 to 2019, revenue for the Auto Parts Stores industry is forecast to grow.

For more information, visit IBISWorld’s Auto Parts Stores in Canada industry report page.

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IBISWorld industry Report Key Topics

The Auto Parts Stores in Canada industry sells automotive parts and accessories, with the exception of tires. Tire retailers are included in the Tire Dealers industry (IBISWorld report 44132CA).

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 and Canadian 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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    IBISWorld
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