The auto parts industry is the largest manufacturing sector in the world. It started as a local corner hardware store with bolts and nuts, and today, it produces components for world car and truck producers. With operations on every continent but Antarctica, the auto parts industry is truly global. As of 2010, the industry will be worth $1.1 trillion dollars. Although the domestic Big Three auto parts suppliers have had a rocky history, there is good news: they are improving their relationship with vehicle manufacturers.
The automotive industry is divided into many different industries and subsectors. OE, or original equipment, parts are designed for assembly on vehicles during the manufacturing process. Aftermarket parts are designed to improve safety, performance, and convenience. OE and aftermarket auto parts are also sold after a vehicle’s original sale. Listed below are the major categories of auto parts. To see the percentage of industry shipments in a category, visit the International Trade Centre website.
The auto industry is facing increased competition globally, which is affecting all industries. Increasing cost pressures and lower quality standards have put a strain on many suppliers. New technologies are expected to dramatically change the automobile industry, including hybrid powertrains, electric and fuel-cell powered vehicles, and direct-injection clean diesel engines. While many manufacturers and suppliers are putting their money in research and development to meet these demands, the auto parts industry is poised for growth.
The world’s auto parts industry has been experiencing a steady decline in employment in recent years. In 2000, the industry employed more than 900,000 people, and was estimated to be seventy million by 2006. In 2006, fewer than 100 major auto parts suppliers will remain in business by the year 2010. The industry has been undergoing a dramatic change, but a number of companies have been able to grow significantly in size.
The auto parts industry is dominated by large, focused companies. Those with smaller companies have a better chance of remaining competitive. As a result, it is not a good time to buy a large company. Instead, focus on small suppliers that are focused on improving their products. There are many advantages to doing business with smaller auto parts suppliers. The U.S. auto parts industry will not become a giant, but it will have some consolidated parts suppliers.
The United States auto parts market is dominated by a small number of major auto parts suppliers. Some of these companies produce aftermarket parts, which are not manufactured by the original manufacturers. The quality of these parts depends on their manufacturer. Aftermarket car parts are generally of lower quality. However, it is still possible to buy aftermarket auto parts that are compatible with your vehicle. If you want to save money on auto parts, it is best to buy genuine OEM ones.