Industry Trends

From an economic standpoint, the last several years have been like a roller coaster ride—up and down, with a few abrupt (and somewhat stress-inducing) stops along the way. And while the economy continues to climb out of the recession, the speed at which it moves from recovery to expansion is slower than what we’ve experienced in prior recoveries.

Over the balance of the year, increased fuel prices and an overall decrease in the amount of government spending on the local, state and federal level will only further impact the general economy and slow its rate of growth.

According to our economists and financial experts, the economic climate of the aftermarket is varied. Consider the inconsistency of just one aftermarket segment: the construction market. In some parts of the country, it has shown signs of life… yet in others, there’s little to no indication of recovery, which, inevitably, is resulting in a drag on parts sales to construction-related fleets. And as the cost of raw materials continues to escalate, manufacturers are being forced to pass this increase along to customers. Not surprisingly, distributors and dealers are managing their inventories more closely as a result.

Bottom line: This roller coaster ride is not over. It’s best to keep your arms inside the car at all times and not unbuckle until it has come to a complete stop.

Courtesy of MacKay & Company,

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