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Internal Engine Hard Part Aftermarket Consolidates

28 September 1999

Frost & Sullivan - Internal Engine Hard Part Aftermarket Consolidates Into Broad-Line and Niche Suppliers

    SAN ANTONIO, Sept. 28 -- In the internal engine hard part
market, participants are in a race for the lead. To remain competitive,
participants must find ways to differentiate themselves from their
counterparts. Manufacturers and distributors choose vertical and/or horizontal
consolidation, while others concentrate on niche markets.
    According to strategic research by Frost & Sullivan (http://www.frost.com),
U.S. Internal Engine Hard Part Aftermarket, the market generated $621 million
in 1998. Because of stable demand, slow price growth and price-based
competition, it has maintained steady growth.
    Continued prosperity is expected because engine parts are
non-discretionary purchases. As today's vehicles last longer and vehicle
proliferation continues, engine maintenance becomes even more important.
    To remain competitive, many participants have begun to maximize operations
efficiency, from acquisition of raw materials to production, to distribution.
They must ensure end-users remain aware of their brand names and maintain the
integrity of those brands through competitively priced quality products.
However, manufacturers find it difficult to balance quality with price.
    "Many parts for newer engines are machined to more exact specifications
and may be coated with high-tech materials," says Analyst Joerg Dittmer.
"These requirements may call for increased labor and specialized machinery,
both of which increase costs."
    The market is also feeling the effects of legislation. Many engine parts
aftermarket suppliers may have to prove their products meet emissions
regulations in the near future.
    U.S. Internal Engine Hard Part Aftermarket analyzes demand for internal
engine products for passenger cars and light trucks. The report is segmented
into three aftermarkets -- the piston and piston parts aftermarket, engine
bearing aftermarket, and valve and valve-train aftermarket. Each chapter
contains essential market statistics, such as revenues and growth rates. By
assessing market drivers and restraints and by providing expert forecasts,
this report offers a comprehensive guide to the industry.
    Frost & Sullivan presents the 1999 Market Engineering Product Line
Strategy Award to Federal-Mogul Corporation. The 1999 Market Engineering Best
Website Award goes to Crower Cams & Equipment Company.
    Frost & Sullivan, an international market consulting company, monitors the
transportation industry for market trends, measurements and strategies. This
ongoing research is used to update online research including aftermarket
topics such as starters, alternators and brake and exhaust system parts.
Executive summaries of all Frost & Sullivan reports are available to the
press.
    Visit Frost & Sullivan's Web site at:  http://www.frost.com .

         Report:  #7125-18    Date:  September1999    Price:  $3,450