Distribution Study

This 236 page report details the tremendous number of changes in the heavy duty parts and service distribution environment in the past ten years. After many years of relative stability in both the original equipment and independent distribution channels, the past decade has seen major upheavals.

Today, six separate distribution elements exist in the heavy duty aftermarket excluding direct sales from manufacturers to fleets (essentially distribution without distribution). Each of these six is aligned to a greater or lesser degree with the original manufacturer of the vehicle that creates the aftermarket opportunity:

• OEM New Vehicles
• OEM Dealers
• Engine Distributors
• Product Specialists
• Independent Heavy Duty Distributors
• Automotive Parts Outlets selling Heavy Duty Parts
• Automotive Parts Outlets

In addition to looking at the past, forecasting the 2011 and 2016 heavy duty aftermarket distribution system is also examined. Over the next decade, MacKay & Company expects that meaningful advances will be made in physical distribution in the heavy duty aftermarket. The anticipated emergence of a small number of much larger groups in both the original equipment and independent aftermarket channels should drive reductions in the number of "handlings" of aftermarket parts and components, a concurrent decrease in handling cost and a corresponding increase in delivery speed.

MacKay & Company anticipates that, by 2016, a majority of the significant players in the independent aftermarket will be either consolidated or acquired. This consolidation/acquisition process is also anticipated to include several smaller but multi-location independents as well. In all probability, there may be no more than six major distribution groups in the combined automotive/heavy duty independent channels.

For a complete report, please contact: John Blodgett, sales & marketing manager, at 630-916-6110 or email john.blodgett@mackayco.com.