The automotive aftermarket outlook is getting brighter but the industry is not out of the woods yet, according to the Aftermarket Supplier Sentiment Index.
Measured by the Automotive Aftermarket Suppliers Association (AASA) in the fourth quarter 2011, the AASA Aftermarket Supplier Barometer reached positive territory in the fourth quarter of 2011, reversing a trend of five consecutive quarters of decline, according to Steve Handschuh, president and COO of AASA.
“The majority of AASA Barometer respondents also reported fourth quarter sales growth and 17% reported growth as substantial, which is the best sales performance since Q1 2011. Further good news is that the majority of AASA Barometer survey participants are forecasting revenue growth for their company in 2012,” he said.
While the outlook for the future has become significantly more positive, it is still low by historical standards and challenges remain. “Despite sales growth, margin performance deteriorated in the fourth quarter 2011,” said Paul McCarthy, AASA vice president of industry analysis. “Declining margins despite a strong market may be a possible reflection of a lack of bargaining power by suppliers in the automotive aftermarket.”