Window Lift Motors Drive Revenues in the North American Automotive Selected Fractional Horsepower Motors Aftermarket

PALO ALTO, Calif.--Feb. 2, 20044, 2004--The utilitarian aspect of fractional horsepower motors makes it rather difficult for manufacturers to win the brand loyalty of end-users. In this highly competitive, price-driven aftermarket, offering value-added services could give participants the necessary boost to stay "top-of-the-mind" with installers.

New analysis from Frost & Sullivan (www.transportation.frost.com), North American Selected Fractional Horsepower Motors Aftermarket reveals that revenues in this industry totaled $107.8 million in 2003 and are forecast to reach $146.6 million by 2009.

"For the market to expand, participants must find ways of offsetting commoditization and maintaining margins," says Frost & Sullivan Industry Manager, Jasmine Sachdeva. "Since end-user purchase decisions are primarily based on price and installer recommendations, they must focus on winning the loyalty of installers."

Product innovation, while crucial in generating interest among installers, could lead to excess production and over-diversification in the long-run.

"Parts-proliferation increases inventory costs, which in turn undercuts profit margins," says the analyst. "In order to capture market share, companies must focus on providing alternatives that give the highest ratio of value to cost."

Targeting under-serviced channels and developing innovative distribution strategies will also enable competitors to stay ahead. Suppliers that can gain maximum market penetration and extend their coverage area are likely to emerge as the market leaders.

Extending the area of coverage is critical as the quality of original equipment (OE) motors improves. Traditional aftermarket participants can no longer rely on premature failure to drive aftermarket business.

"The trend toward longer and extended vehicle warranties means that more replacements will be made in the original equipment service (OES) channel with OE parts," says Sachdeva. "This would decrease growth opportunities for traditional aftermarket manufacturers, who will be hard pressed to find newer ways of generating revenue."

Another factor, with which manufacturers have to contend, is the demand for huge price concessions by distributors. Manufacturers are captive to their large accounts and distributors take advantage of this situation to win a favorable price, program, and brand terms.

"Manufacturers have a lot of challenges to combat but they could turn the situation around to suit them," says Sachdeva. "To provide comprehensive coverage, FHP motor manufacturers could enter into co-manufacturing or co-supplying agreements with other manufacturers, as this would help them to cost-effectively produce all the models required to be full-line FHP motor suppliers."

If you are interested in an virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the analysis of this market, send an email to Nuha Kadri, Industrial Media Relations Executive at nkadri@frost.com with the following information: your full name, company name, title, telephone number, e-mail and title of the brochure you are interested in receiving. Upon receipt of your information, an overview will be sent to you via e-mail.

North American Selected Fractional Horsepower Motors Aftermarket is part of the North American Aftermarket Subscription, and studies the prevailing competition in the new and remanufactured motors aftermarket in three product segments: window lift motors, engine cooling motors, and wiper motors. It also evaluates the drivers and restraints that affect each market segment and their impact on revenue flow. Additionally, it includes an in-depth analysis of how each competitor is approaching product differentiation. Summaries and interviews are available to the press.

Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence, and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights and to create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers, and support staff spans the globe with offices in every major country.

North American Selected Fractional Horsepower Motors Aftermarket

A538

Keywords: market, forecast, horsepower, aftermarket, window lift motors, engine cooling motors, wiper motors, fractional horsepower, commoditization, replacement units, installers, original equipment service, original equipment.