Posts Tagged ‘ recession ’

Americans Spend More Income on Auto Parts, Reversing Long-Term Trend

January 23, 2012
Americans Spend More Income on Auto Parts, Reversing Long-Term Trend

A bit of good news to add to our post last month that sales of auto parts for 2011 will show an increase over 2010: Our market research shows the amount of auto parts purchased as a percentage of personal income has reversed a downward trend of more than 10 years. In 2010, retail sales of auto parts represented about half a percent of personal income (0.0513% to be exact). Preliminary numbers for 2011 show the first increase in that percentage in more than 10 years, to levels not seen since 2008. We’re projecting...

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How will 2011 be for the Automotive Aftermarket Industry?

January 3, 2011
How will 2011 be for the Automotive Aftermarket Industry?

Happy New Year for the automotive aftermarket industry! Following up on our popular blog post “What If You Invested $1,000 in Automotive Aftermarket Companies” the Hedges & Company Automotive Aftermarket Index finished 2010 with a 48% gain. In a dramatic comparison, the S&P 500 only increased 11% in 2010. Not only did the Hedges & Company Automotive Aftermarket Index outperform the S&P, but aside from a slight blip in June and July, the rise was steady and constant. Compared to the 2008 baseline (gray line in chart), 2010 was clearly a breakout year. The...

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Auto Aftermarket is a Bright Spot In A Cloudy Economy

November 2, 2010
Auto Aftermarket is a Bright Spot In A Cloudy Economy

While economists report that the U.S. economy is “bumping along the bottom,” the Hedges & Company Aftermarket Stock Index continues its climb that started in March 2009. That’s right, March 2009, three months before the “Great Recession” was officially declared over. The stock index is comprised of over 20 publicly-traded automotive aftermarket SEMA-member/AAIA-member companies and has steadily grown over 72%, March 2009 to November 2010. The chart below compares the stock index with the S&P 500. The S&P 500 does appear to bumping along the bottom with a hint of a slow recovery. In...

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Why Was This Recession Different? It Was the Double-Dip In Auto Parts Sales

September 28, 2010
Why Was This Recession Different? It Was the Double-Dip In Auto Parts Sales

When looking at the auto parts retail segment of the economy, the Great Recession not only lasted longer than previous recessions, but our market research shows auto parts retail sales also had a double-dip. For all the talk in the news media earlier this year whether the recent recession would fall into a double-dip recession, the automotive aftermarket already had one.* And ironically sales for the aftermarket went into negative territory June 2009, when the current recession is now officially defined as ended. Confused? Read on. From December 2007 (the start of the Great...

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Are Manufacturers the Catalyst for the Specialty Equipment Industry?

September 13, 2010
Are Manufacturers the Catalyst for the Specialty Equipment Industry?

Are specialty equipment manufacturers the light at the end of the tunnel? In a recent SEMA Financial Benchmarking research report, 70% of manufacturers reported an increase in year-to-date sales through June 2010. This optimism seems to continue through the fall months as 64% of the manufacturers expect sales to improve by an average of 17.5% through August, September, and October. However, retailers and distributors do not share that nearly unbridled enthusiasm. In the same market research report, 48% of retailers report an increase and 52% of distributors report increase in year-to-date sales for the...

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