Drivers calling for higher-grade pads, lower-grade rotors - - Aftermarket Business - Wholesaler, retailer automotive parts

Drivers calling for higher-grade pads, lower-grade rotors

Source: Aftermarket Business

Untitled Document

Though many product categories are suffering the effects of our weak economy, all signs point to a strong brake product marketplace.

In fact, drivers are more likely to “trade up” for premium brands and materials, especially ceramic brake friction products, according to a recent report by Frost & Sullivan.

Analysis from “North American Brake System Parts Aftermarket: Friction Parts” states the friction parts aftermarket earned $1.21 billion last year, and Frost & Sullivan estimates a $1.58 billion market by 2014. Some manufacturers have considered this projection wishful thinking, but agree that growth exists in the brake parts category, especially with brake pads.

“The raw material costs are going up,” says Dan Lelchuk, president of Centric Parts, makers of the StopTech and Power Slot brands of brake components and systems. “Price increases are occurring from all segments of the market, not just brakes.”

“Moving customers in the low-priced product line into the mid-grade line, and those in the mid-grade line into the premium line, increases profits and allows manufacturers to invest in researching and developing the next generation of friction parts,” says Stephen Spivey, Frost & Sullivan senior industry analyst.

Jim Kelley, director of sales and marketing for Honeywell Friction Materials, corrects the “upselling” assumption, instead clarifying that Bendix-brand brake products are introduced to customers at the premium level first.

The trend with brake work these days appears to be premium friction with standard-grade rotors, asserts Lelchuk. This means more rotors are being replaced along with regular brake pad changes.

It’s easier to sell a premium brake pad than it is a premium rotor, say the manufacturers we spoke with.

Lelchuk also attributes the driver’s need for less brake dust as a factor in selling premium friction materials. However, brake dust may not always be connected to the friction material. At times, “the dust you see is not pad dust but dust from the brake rotors,” he adds.

Overall, even brakes as a category can stand to improve. Lelchuk says Centric’s distributors have seen single-digit increases, “pretty much where they were last year.”

Where the slowdown occurs, he adds, is in preventive maintenance.

The Frost & Sullivan report concludes with this advice: manufacturers must emphasize their product differentiation, along with customer service and profitability throughout the supply chain. Suppliers also should aim for complete all-makes, all-models coverage, along with considering sales of other brake-related products such as rotors and calipers.

post a comment
Your email address will NOT be published.
appears with your comment
read our privacy policy
Note: does not support HTML
All comments submitted are subject to review, and may be delayed before posting. We reserve the right not to post comments.
Survey
What are your industry expectations for 2010?
I expect the aftermarket to improve greatly.
I expect continued consolidation.
I expect a drop in sales and consumer spending.
I expect a slow, steady improvement over the next several years.
I expect 2010 to mimic 2009 in financial hardship and company closures.
I expect the aftermarket to improve greatly.
11%
I expect continued consolidation.
11%
I expect a drop in sales and consumer spending.
6%
I expect a slow, steady improvement over the next several years.
39%
I expect 2010 to mimic 2009 in financial hardship and company closures.
32%
View Results
Thank you for sharing your opinion with Aftermarket Business!
E-News envelope

Check the e-newsletter(s) you would like to receive.

Rollover each title for information.

Distribution - Anyone interested in auto parts issues will enhance their business by subscribing to our Distribution newsletter from Aftermarket Business. Published every Tuesday and Friday.
Collision Repair - Our Collision Repair newsletter from ABRN provides up-to-date news, innovative products, technical discussions and shop management features designed to enhance your business. Published every Tuesday and Friday.
Service Repair - Sign up today for Service Repair news from Motor Age. Benefiting auto technicians, this e-newsletter provides the latest news and analysis, technical automotive service information and business management tips. Published every Monday and Thursday.
Certified Technician - Professional automotive technicians and parts distributors seeking aftermarket products should sign up for the Certified Technician e-newsletter. This is your source for information about the latest tools, equipment and parts that can help you better service your customers. Published every Monday and Thursday.

Source: Aftermarket Business,
Click here