The Auto Parts and Equipment Industry

The auto parts and equipment industry is undergoing rapid change. In addition to individual parts, major suppliers are increasingly providing entire vehicle systems. Companies such as Magna International are moving beyond supplying hundreds of individual parts to building entire vehicles. Increasing competition globally is increasing the competition among suppliers, and many consumers are demanding lower-cost, lower-quality auto parts. To meet this demand, companies are looking to innovative and collaborative approaches to supply chain management.

According to the Bureau of Labor Statistics, the auto parts and equipment industry had a global market value of more than $135 billion in 2006. In 2007, the industry had a 7.3 percent annual growth rate, while in 1997 it was just under one percent. The industry has been cyclical, with the highest shipments recorded in the years 2000 and 2001. However, in 2005, shipments were almost at their 2000 peak, indicating that the industry is undergoing a turnaround.

China has made strides in promoting domestic manufacturing. By 2005, China’s auto parts exports were worth $220 billion, representing 29 percent of total auto parts exports. The industry is now one of the most competitive places for manufacturing, and the Chinese government has made this possible with its impressive public procurement machine. The auto parts industry is critical to the economic health of the country, and its thriving supply chain ecosystem is an important part of that.

The auto parts and equipment industry is an extremely diverse industry that produces an assortment of products. It includes all the components of an automobile, except for the body and the tires. According to the U.S. Bureau of Census, the industry is divided into eleven distinct industries and nine major product groups. The breakdown is illustrated by the percentage of product shipments for each category, and the total value of exports for each. For example, in the United States, more than 20% of all auto parts and equipment are sold from their country of origin. In addition to the domestic market, they are also exported worldwide to countries like Japan, Western Europe, and the United States.

In the United States, independent producers supply the majority of automotive parts. There were approximately 1,500 Tier 1 suppliers in 2004; however, this number has been steadily decreasing. In the coming years, this number will decrease to 500 to 700, and only fifty will be system integrators dealing directly with vehicle manufacturers. However, the growth of China’s auto parts industry is projected to continue. The demand for these parts will continue to grow.

The demand for auto parts and equipment is expected to increase by 3.0% by 2021. Low interest rates and massive increases in demand will support this industry. The industry is also closely related to the growth of the automobile industry. This is a promising industry for those who want a job in the auto industry. And don’t forget to keep these factors in mind. In addition to the growing demand for auto parts, you can expect to earn a good living by working in the auto parts and equipment industry.

Leave comment

Your email address will not be published. Required fields are marked with *.