Fadi Ajam Weighs in on Automotive Aftermarket

(Newswire.net — January 19, 2018) New Hyde Park, NY — Financial analysts around the country are predicting that the automotive aftermarket industry will experience substantial revenue growth over the next several years. Industry leaders like Fadi Ajam, entrepreneur and business owner, know that while motorists are driving less miles than in years past, higher prices of automobile accessories and aftermarket equipment are making up the difference in costs, driving revenue higher. The projected revenue increases, up to 3.4% in most analysts’ estimations, are even expected to more than offset projected dips in sales of aftermarket parts and accessories. “Advances in technology among aftermarket parts are helping to drive growth in this sector,” says Mr. Ajam, CEO of Xanatos Automotive and Black Horse Off Road, two prominent manufacturers of equipment for motoring enthusiasts. “Premium parts are in demand, even as sales have dipped across the board.” To learn more about his work in the automotive field, visit https://newswire.net/newsroom/pr/00098656-fadi-ajam-automotive-entrepreneur-sema-show.pdf.

Higher price tags on premium automotive accessories are responsible for improved revenue streams. For example, low-profile wiper blades are quickly gaining acceptance in the automotive enthusiast community, even as replacements for OEM models that tend to be less expensive. Technology advancements such as wheel-hub assemblies with electronic monitoring sensors have replaced individual wheel bearings and replacement seals, while the humble fuel pump now comes as a module with sensors rather than a direct item replacement. Each of these advances cost more than their traditional counterparts, increasing costs and capabilities, and have made them sought-after choices in the aftermarket sector.

Even in a formerly stagnant sector like motor oil, advances in technology and user preferences have spurred increased revenue. More manufacturers are specifying synthetic oil blends, driving costs upward while annual per-mile driving rates have dipped. In the motor oil sector, price increases are seen by analysts as a combination of “trading up”, or increased demand for performance by motorists, as well as in improvements in OEM vehicle specifications.

Private-label replacement parts are another aspect that is enjoying increased growth in the aftermarket industry. Stock OEM parts have fallen out of favor among vehicle servicing operations, preferring instead the privately-labeled and manufactured replacement parts from boutique equipment producers. Automotive lighting is one area where private labeling is seeing substantial increases in market penetration. As a lighting manufacturer for many years, Fadi Ajam knows that this sector is not without its share of challenges. “Consumers are driving less – about 400 miles less per vehicle per year – but demands for advanced lighting systems have increased,” says Mr. Ajam. “This is having a major impact on revenue for lighting manufacturers, which are shipping more units and expect to see increased growth over the next few years.” For more information on Fadi Ajam and his industry leadership in the aftermarket accessories field, visit http://inspirery.com/fadi-ajam/.