We are excited to continue our market research in Brazil and we wanted to share this important news with you! As you may recall, MacKay & Company conducted two extensive studies in Brazil — in 2013, our Agriculture Equipment Parts Study and in 2012, we completed our inaugural Truck & Bus Aftermarket Parts Study.
According to our sources in Brazil, "the agriculture market has not slowed down. The harvest for 2016 was 26% larger than the previous harvest and was a record for both soybeans and corn. The agriculture market is expected to grow 4.4% in 2017. The sales of new farm machinery suffered significantly in 2016 with a drop of 30% in sales of new machines.
In 2017, this has begun to grow again and is expected to reach 10% growth this year. If sales of new machinery were slow last year and at the same time a record harvest was planted and harvested, this was done with existing machines. This points to significant growth of the parts industry." It certainly sounds like it is time to revisit the Brazil Ag market and explore the potential growth in the market and discover the impacts this will have on the equipment and parts suppliers as well as the distribution channels.
In 2013, MacKay’s extensive study determined that the Agricultural Aftermarket totalled R$20,148 Million with Engine Overhaul and External Parts accounting for approximately one-quarter of the market.
In 2017, we are planning to update our 2013 Study and once again examine the Brazilian Agriculture Aftermarket.
DataMac Truck Brazil
THE TIME IS COMING to revisit this market, compare the data to our benchmark study and closely explore those areas of growth and those of decline.
It has been four years since we examined the truck and bus market in Brazil. Back in 2015, the Brazilian truck and bus market totaled $12.9B U.S. Dollars at Retail. Comparing the same 280 components detailed in Brazil, the comparable market in the U.S. is $17.6B, approximately 36% larger. At that time, nearly 2.9 million trucks, buses and trailers were operating in Brazil.
- What has that market grown to be today?
- Four years ago, Brazilian Truck Dealers dominated the heavy duty aftermarket; are they still maintaining that same presence?
- Do the automotive parts outlets remain a frequented channel?
Our aftermarket studies consistently provide data on the size of the market, where the service is completed, where the part is purchased and how these activities vary by application and type of vehicle. Are you and your team interested in learning more?
We are planning to update DataMac Truck Brazil in the 2018/2019 timeframe.
In 2015, MacKay & Company's research partner surveyed 370 fleets operating 18,000 power units. The total 2015 replacement parts demand for medium and heavy duty vehicles is estimated to be $3,402 million, 18% higher than our previous study in 2011. At the conclusion of our 2015 Report, the economic situation in Mexico was generally favorable and the expectation was that the expansion would continue into 2016. There was mention that Mexico had entered into a new phase of development, one that would encourage growth.
The number of Class 8 vehicles produced in Mexico has grown fifteen times in the 14 year span between 2001 and 2015. Those trucks remaining in Mexico tripled while exports not only increased in total quantity, but also in number of destinations. 4,000 trucks were exported beyond North America; 6,000 headed to Canada and another 91,000 were added to the U.S. operating population.
Our clients have expressed interest in revisiting the Mexico market, as a result, we have moved our time frame forward and are planning to commence our 2017 research program within the next month. This will be the seventh time MacKay & Company has profiled the Mexican market which will provide six reference points in time to analyze this market where there are shifts and changes meriting such an analysis. This information will be included, when pertinent, as a tool to identify trends or highlight significant changes in the aftermarket. In the process, inventory levels, prices, margins, shifts in the customer base and a series of related issues will be evaluated in detail.
Want to learn more about the U.S. Truck Aftermarket
In January 2018, in collaboration with the Heavy Duty Manufacturers Association, MacKay & Company presents a one-day conference focused on the Aftermarket. There will be panel discussions, presentations on the Economy and an extensive look into the Aftermarket.
HDAW, Heavy Duty Aftermarket Week, follows our conference. This week-long conference offers a worthwhile opportunity for all those involved in the aftermarket. the conference offers a number of educational sessions, networking events time for heavy duty parts distributors to meet with component manufacturers.
Please save January 22, 2018 for our one-day conference. HDAW will take place the balance of that week. We will send more information in our next Newsletter OR you can always contact us to learn more.