A Look at the Truck Market

Consumers are holding onto their trucks longer, and aftermarket part sales are increasing. The slumping economy and high gas prices have slowed sales of new pickup trucks, with Specialty Equipment Market Association (SEMA) research indicating that enthusiasts are holding onto their trucks longer, while builders and contractors are deferring purchases of new trucks until the housing market rebounds. However, sales of aftermarket truck parts and accessories, including lift kits, turbochargers, exhaust systems, suspensions and larger wheels and tires, are on the upswing. Last year, diesel truck owners spent 17 percent more on specialty equipment than non-diesel truck owners, and SEMA projects U.S. demand for diesel engines and aftermarket parts will increase 3.8 percent a year through 2011. Aftermarket sales reflect the increased popularity of trucks over the past decade, with pickup parts representing over half of all aftermarket parts sold. More than 80 percent of truck owners eventually modify their vehicles to some degree. "Our industry shifted when pickups started outselling cars," says Peter MacGillivray, VP, communications and events for SEMA. "The aftermarket followed suit and companies that sold parts started to sell more SUV- and pickup-related styling and functional accessories. That has pretty much stayed true for the past 10 years." The volatility of gas prices may eventually encourage truck owners to consider purchasing more fuel efficient vehicles. "However, as of now, the impact hasn't hit the enthusiast market we represent where their vehicle is at the center of their lifestyle, so they'll compromise on other things rather than the part of their life they enjoy the most," says MacGillivray. Although hybrid and alternative fuel engine options have garnered much of the media attention for their fuel economy benefits, MacGillivray believes diesels represent the biggest opportunity for the aftermarket. Last year, diesel truck owners spent 17 percent more on specialty equipment than non-diesel truck owners, and SEMA projects U.S. demand for diesel engines and aftermarket parts will increase 3.8 percent a year through 2011. Chris Mann, Toyota accessory sales manager, believes diesel trucks will continue growing in popularity because they are easily modified and more fuel efficient than gasoline- fueled trucks. "It seems to be the trend at least in market perception that diesels will have the perfect compromise of performance and economy," he says. Truck owners are a diverse lot who can be categorized into a number of different groups, including those who buy and drive trucks as a means of self expression and those who depend on trucks for their livelihood. Although high gas prices may chase some of the self expression customers to different vehicle segments, those who depend on trucks for their livelihood don't have that option. "Pickup truck sales will rebound in the future because they are unique in that most people who own them are at least what we call 'occasional use imperative,' meaning there isn't a substitute vehicle; they need a pickup truck," says Mann. "So while the construction industry may go up and down with the economy, when business picks up, there's no alternative vehicle, so the truck business will rebound along with it." Dealerships are increasingly offering vehicle modification work themselves, and it's an increasingly popular option for customers due to the convenience, ease of billing and assurance of quality. "People want to personalize their vehicle to meet their needs; it's form and function, customize and personalize," says Rob Richard, Mopar marketing and sales director. "People may love a stock truck; they like the way it looks, they know it's going to be functional, they know it's going to meet their basic transportation needs, now the question they ask is what can you offer me to help me look different than the guy who's just buying the base truck?" AMSOIL synthetic motor oils and diesel oils provide second-to-none protection and performance for both newer and older trucks, extending equipment life and increasing fuel economy.