Why there are no worries about aftermarket health

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If anyone has concerns about how good things are in the automotive aftermarket, one just has to look at the latest data from DesRosiers Automotive Consultants.

Retail sales? Way up. Employment? Up. The bottom line? Up.

DesRosiers described the industry as “a pillar of strength for the broader automotive space,” a fact that continues to hold true.

Its latest scorecard showed automotive parts and accessories sales up 10.5 per cent in 2022 compared to the year before.

Employment in parts and accessories stores was up 5.4 per cent. Automotive repair and service employment was up 4.6 per cent. This all indicates strong dollar sales, DesRosiers’ report noted.

Of course, inflation is playing a role in the bottom lines aftermarket industry outlets. Parts shortages were widespread throughout the year. As a result, parts prices and repairs saw an increase. The consumer price index showed that passenger vehicle parts accessories and supplies saw an increase of 8.6 per cent. Meanwhile, passenger vehicle maintenance and repair services was up 5.6 per cent.

“The Canadian automotive aftermarket put forward a strong performance in 2022 despite shortages and price spikes that continue to impact the market,” said Andrew King, managing partner at DesRosiers.

The report noted that “all expectations point to another strong year for the Canadian aftermarket in 2023, barring severe wider economic uncertainty.”