Suppliers in the trucking aftermarket are adjusting to evolving customer demands, regulatory changes, the effects of tariffs, and the need for supply chain resilience, all while increasingly relying on technology. Despite ongoing challenges, panelists at the Heavy Duty Aftermarket Dialogue’s Real-World View of the Aftermarket discussion identified emerging opportunities. Their primary focus includes increasing manufacturing capacity in North America, investing in digital innovation, and enhancing relationships with distributors and fleets.
The panel consisted of:
- Dominic Grote, President and CEO of Grote Industries;
- Chip Stuhr, President of Stemco;
- Matt Wolfe, Vice President and General Manager of Aftermarket at SAF-Holland;
- Moderator: Paul McCarthy, President of MEMA Aftermarket Suppliers.
Below are key insights from the discussion.
North American Manufacturing: A Strategic Long-Term Approach
The panelists concurred that manufacturing closer to customers has become a strategic imperative. They have increased production capacity across the U.S., Canada, and Mexico to effectively respond to the trucking aftermarket’s demand. The aim is to assemble products near the end markets, although moving operations necessitates long-term planning and investment.
At the same time, the potential for tariff fluctuations remains a significant concern. Adjusting manufacturing sites in response to policy changes is not a quick process and can take years to implement. Many suppliers are concentrating on strengthening their supply chain resilience, as sudden regulatory amendments can impact production costs and sourcing of materials.
Challenges and Opportunities for Customers in the Trucking Aftermarket
The trucking aftermarket is experiencing a transformation in customer expectations, largely due to the rise of e-commerce and logistics innovations. Customers increasingly seek faster services and greater transparency, including real-time order tracking and flexible communication options. To meet these demands, suppliers are enhancing their operational efficiency, particularly in inventory management, distribution improvements, and technology adoption.
The pandemic accelerated changes in inventory management, with fleets decreasing their in-house parts inventory and relying more on suppliers to ensure availability. This shift puts additional pressure on suppliers to enhance their forecasting models and distribution frameworks. The panelists noted that they are investing in improved planning processes and using data-driven insights to meet demand without overstretching their supply chains.
Investment in Technology: Shaping the Future of Trucking Aftermarket Operations
As the industry evolves, technology has become crucial for aftermarket operations. Suppliers are investing heavily in digital infrastructure, automation, and AI-driven forecasting tools. The panelists reported adopting a problem-first approach, focusing on identifying critical customer pain points before implementing technology solutions. Investments in ERP and e-commerce systems have become commonplace. The integration of AI-driven analytics into inventory management and demand forecasting is proving beneficial, helping to optimize stock levels and reduce disruptions.
Addressing the Technician Shortage in the Aftermarket
A significant challenge facing the aftermarket is the shortage of technicians and improving repair efficiency. The supplier panelists highlighted their financial commitments towards addressing this issue, investing in training programs and process improvements. Their aim is to equip fleets and service providers with the resources necessary to maintain vehicle operation with minimal downtime.
Meeting the Needs of OEM and Trucking Aftermarket Sectors
For suppliers catering to both original equipment manufacturers (OEM) and aftermarket sectors, balancing these priorities remains an essential challenge. Recent supply chain disruptions led many companies to prioritize OEM contracts, causing aftermarket customers to struggle with part availability. As supply chains stabilize, suppliers are turning their attention to enhanced forecasting and inventory management to better serve both segments.
Competing Against Aftermarket White-Box Parts
The emergence of inexpensive white-box parts has added a new level of competition in the aftermarket. While there will always be a market segment driven by cost, many suppliers are highlighting service, reliability, and long-term value as their unique advantages. By fostering strong relationships with distributors and fleets, panelists emphasized that they can reinforce the benefits of partnering with established and trusted brands.
Beyond product quality, factors like dependable service, support, and stability in the supply chain have become crucial in customer decision-making. The panelists noted that suppliers showing these additional benefits can remain competitive even as lower-cost options gain popularity in certain market segments.
