Strong Performance Carburetor Sales Surprise the Market
1 May 2000
According to Frost & Sullivan: Strong Performance Carburetor Sales Surprise the Market
SAN ANTONIO--May 1, 2000--The performance carburetor segment of the U.S. carburetor aftermarket is still going strong and offering growth opportunities despite the overall decline in the industry.It owes its growth to an enthusiast-customer base, which is passionate about its vehicles and willing to spend money to enhance vehicle performance and appearance.
According to new strategic research from Frost & Sullivan (www.frost.com), "U.S. Automotive Carburetor Aftermarket," this industry generated $211.1 million in revenues in 1999, but the market is expected to decline slowly. However, performance carburetor revenues are forecast to grow, posting a compound annual growth rate of 3.0 percent through 2006.
In addition to performance carburetors, the industry could also reap the benefits of a growing export market. Although the domestic carburetor segment has been on the decline, there is a growing aftermarket in the developing world, especially for remanufactured carburetors. Suppliers should look for opportunities in these markets to offset losses as a result of shrinking domestic demand.
Inventory control and management is crucial for survival in the replacement market. In an industry that boasts more than 2,000 part numbers, none of which account for more than four percent of the total market, the ability to provide the correct component promptly is key.
"The company that can ship the right part in the shortest amount of time wins the race," says Frost & Sullivan analyst Meenakshi Ganjoo. "As a result, the challenge for aftermarket manufacturers and redistributors is to maintain adequate parts coverage, while containing costs."
Production costs and prices have become the basis for competition since consumers believe most brands are equal. The failure of manufacturers to distinguish their products, especially in the replacement market, has resulted in price discounts and tighter profit margins. To combat price erosion, manufacturers need to leverage brand name awareness at the consumer level. However, this may prove to be difficult since it is older vehicles requiring carburetors, and owners may not pay a premium price in view of the depreciated value of the automobile itself.
Frost & Sullivan presents the 2000 Market Engineering Awards to companies that have worked hard to make a positive contribution to the ground transportation industry. The 2000 Market Engineering Brand Development Award is presented to Edelbrock Corporation (NYSE:EDEL).
Companies participating in this industry include: Ace Fuel Systems Inc.; BFIC Incorporated/Carbsonly; Carbtech; Carbs Unlimited Inc.; Champion Parts Inc.; Daytona Parts Company; Edelbrock Corporation; F.C. Remanufactured Products; Federal-Mogul Corp.; Ford Customer Service Division; General Motors/Service Parts Operations/ACDelco Aftermarket; Holley Performance Products; Magneti Marelli USA; Superior Carburetors; and Tomco Auto Products Inc.
Related companies include Dana Corporation; GB Remanufacturing Inc.; Rising Sun Engines Inc., Standard Motor Products Inc., and Walker Products Inc. Industry associations are Automotive Parts Rebuilders Association (APRA); Specialty Equipment Market Association (SEMA) and Motor & Equipment Manufacturers Association (MEMA).
Frost & Sullivan, which is headquartered in Mountain View, Calif., is a global leader in international market consulting and training. Frost & Sullivan monitors the U.S. automotive carburetor industry for market trends, market measurements and strategies. This ongoing research is used to complement the Automotive Aftermarket Custom Subscription. Free executive summaries of the report are available to the press.
Along with publishing in-depth market consulting reports, Frost & Sullivan also provides custom consulting needs to variety of national and international companies.
U.S. Automotive Carburetor Aftermarket
Report: 7242-18 Date: May 2000 Price: $3,450