AF­TER­MAR­KET = BIG BUSI­NESS

EME Outlook - - Manufacturing -

For au­to­mo­tive man­u­fac­tur­ers, af­ter­sales ser­vices rep­re­sent a vi­tal se­ries of rev­enue streams that they can­not af­ford to be with­out.

In­deed, ac­cord­ing to a 2010 re­port by French con­sul­tancy giant Capgem­ini, in West­ern Europe dur­ing a typ­i­cal 15-year lifes­pan of a car, only 37 per­cent of the to­tal rev­enue an OEM re­ceives can be at­trib­uted to the ini­tial sale of the ve­hi­cle.

The af­ter­mar­ket of­fers a ma­jor op­por­tu­nity to drive prof­its by main­tain­ing cus­tomer loy­alty be­yond the up­front sale. World­wide, the au­to­mo­tive af­ter­mar­ket was worth $335.23 bil­lion in 2016, with steady growth ex­pected through to 2025.

The UK mar­ket in par­tic­u­lar is thriv­ing. A study by Frost & Sul­li­van found in 2017 it turned over £21.1 bil­lion, sup­ported more than 345,000 jobs and con­trib­uted £12.2 bil­lion to the coun­try’s econ­omy. By 2022, the UK au­to­mo­tive af­ter­mar­ket is ex­pected to be worth £28 bil­lion.

Auto Fas­ten­ers plays a keep role in the smooth and ef­fi­cient run­ning of many OEMS thanks to its re­li­able pro­vi­sion of fas­ten­ers and spare parts on de­mand as and when they are needed.

Fur­ther, these parts are of­ten needed in dif­fer­ent pack­ag­ing or sup­plied as spe­cialised kits, made up of com­po­nents from sev­eral dif­fer­ent man­u­fac­tur­ers. This is where Auto Fas­ten­ers and its flex­i­ble setup come to the fore.

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