Industry Analysis & Industry Trends
During recessions, motor vehicle parts sellers tend to be more resilient than other companies in the automotive sector because motorists still need to buy essential parts, even during downturns. The industry did encounter some problems, however. Revenue dropped in 2008-09 and in 2009-10 due to lower demand, but also partly because of discounting. However, the industry showed resilience as demand returned relatively quickly and revenue rose in 2010-11. Revenue is expected to grow by 2.1% in 2011-12 to £5.7 billion.
The resilience during and immediately after the financial crisis in late 2008 has resulted from households holding on to their existing vehicles for longer... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Motor Vehicle Parts Sellers industry is expected to grow at a slightly higher rate than the economy. Industry value added is forecast to rise by 1.4% annually over the 10 years through 2016-17, while GDP is expected to grow by about 0.9% annually. The industry's performance over the past five years has suffered due to the global financial crisis, which has brought down profitability. However, industry performance will improve over the next five years and at a faster rate than the economy as a whole due to the relatively stable nature of demand for car parts.
The number of stores is forecast to increase by 0.8% annually over the 10-year period, although it fell slightly in 2008-09 due to the immediate effect of the financial crisis... purchase to read more