Fleets spent $107 billion on parts and service in 2015, according to John Blodgett, vice president of sales and marketing for MacKay & Co.
Speaking at the recent Heavy Duty Dialogue, in Las Vegas, he said that spend breaks down as follows:
- $30.1 billion on replacement parts
- $16 billion on tires
- $2.5 billion on lubricants
- 58.5 billion on labor (assuming a $100 per hour labor rate)
Blodgett said that in 2015, on average truck owners spent $7,400 on parts, $3,200 on tires, $700 on lubricants and $10,200 on service labor for a total annual spend of $21,500 per truck.
Over the course of a 15-year truck life cycle, the fleet will end up spending $345,000 on replacement parts and service.
The parts market grew slightly from its $28.8 billion level in 2014 and dealer share of the market grew from 46% in 2014 to 48% in 2015-- most likely spurred by emissions components. Heavy-duty distributors sold 19% of the parts last year, compared to 17% in 2014. Independent repair garages and engine distributors lost market share.
The overwhelming majority of parts being purchased are new, up from 71% in 2014 to 74% in 2015, again likely driven by emissions requirements, according to Blodgett.
Replacement part demand in Canada has reached $4.8 billion (Canadian dollars), said Dave Kalvelage, manager of IT and database services at MacKay & Co., speaking at the same event. In Canada, half of all replacement parts are sold through dealers.
In Mexico, replacement part demand is $3.4 billion. Independent garages are getting the bulk of the business there, but MacKay statistics show fleets domiciled in Mexico may buy their own parts and give them to the repair garage to install. So, the garage may not be deciding whose parts to purchase.
In the U.S., factory-remanufactured parts account for 15% of parts purchased with another 6% being locally rebuilt.
In Canada. 11% of parts purchased are factory-remanufactured and 8% locally rebuilt.
In Mexico, 96% of parts purchased are new with reman accounting for only 2% and locally rebuilt for 1%.
Blodgett expects U.S. aftermarket parts purchases to increase over the next several years from $30.1 billion in 2015 to $38.6 billion by 2020. Andf he expects Canadian aftermarket parts purchases to rise from $4.8 billion in 2015 to $5.6 billion by 2020.