Parts Leading Indicator continues to trend downward, signaling slow aftermarket parts sales

Parts Leading Indicator continues to trend downward, signaling slow aftermarket parts sales

PLI has declined for eight consecutive months.

Commercial Motor Vehicle Consulting (CMVC) Parts Aftermarket Sales Leading Indicator (PLI) continued its downward slide in July signaling sluggish growth in parts aftermarket sales in the coming months. PLI has declined for eight consecutive months.

“The growth rate of CV parts aftermarket sales is slowing to sluggish growth rates in the coming months due to a combination of micro and macro factors,”said Chris Brady, president of CMVC. “Micro factor: the greater availability of new and used trucks has caused new and used truck operators to upgrade their fleets. Fleets are returning the average age of their truck fleets back to a norm from evaluated levels, causing the average age of a truck in the fleet to have more economic life resulting in slowing parts aftermarket sales.

“Macro factor: fleet capacity utilization is trending downward causing the rate at which the truck population depreciates to slow, resulting in slowing growth of parts aftermarket sales.

For example, the PLI says that the capacity is growing at faster growth rates than freight volumes in the for-hire trucking industry, so carriers with brokerage operations are directing loads to company-owned trucks from third-party carriers, which is reducing truck utilization for third-party carriers, including owner-operators and small fleets. Lower truck utilization, according to the PLI, is slowing the rate at which parts/components depreciate, weighing on parts aftermarket sales. Micro factors will stabilize in the coming months, but macro factors may continue to weigh on parts aftermarket sales in the coming months, CMVC says.

You May Also Like

PACCAR Parts names Weller as 2023 Supplier of the Year

Throughout 2023, Weller contributed to PACCAR Parts overall network performance by exceeding 17% y/y growth.

PACCAR-Parts-Logo

PACCAR Parts named Weller Truck Parts as its 2023 Supplier of the Year, recognizing the supplier that the company says demonstrated outstanding operational achievements, sales growth, parts availability, and program support last year.

Over the course of 2023, PACCAR Parts says Weller contributed to its overall network performance by exceeding 17% year over year in growth. The company adds that Weller produced an on-time shipping rate of more than 99%.

Clore Automotive appoints new vice president of sales

The company says his invaluable experience and customer-centric approach make Dan Lucas right for the role.

Dan-Lucas-Clore-Automotive
Continental Tire opens Retread Solutions Center in South Carolina

The company hopes to uncover new improvements and technologies to innovate the retread process.

Continental-Tire-retread-solutions-center-south-carolina
Akebono launches severe-duty brake pads for Ford models

The company says its new brake pads last longer and can lower maintenance costs, while still providing the stopping power fleets need.

Dayton Parts introduces fuel injector wiring harnesses, EGR coolers, trailer air tank reservoirs

Fuel injector wiring harnesses, exhaust gas recirculation coolers and trailer air tank reservoirs designed to match OEM spec.

Dayton-Parts-2-product-releases

Other Posts

ACT Research data shows Class 8 order surge paused

At a seasonally adjusted 17,100 units, March marks the first month since May 2023 for seasonally adjusted activity below 20,000 units.

ACT-March-24-Class-8-order-surge-pauses
FTR: Class 8 orders down more than 30% month-over-month

Despite the substantial drop from February, FTR says the market is performing well, as March orders are on track with 2023.

FTR-March-24-Preliminary-Class-8-Net-Orders
DMA names new chief financial officer

Kevin Stock brings his experience from CRP Industries, where he helped modernize financial systems and drive growth.

Kevin-Stock-DMA-CFO
ACT Research trailer report finds carriers with ‘reduced willingness to invest in equipment’

ACT Research says limited capex and companies saving money to meet EPA regulations are currently weighing on trailer demand.

ACT-Feb-24-Trailer-Net-Orders-Cancellations