SIC 5013 Motor Vehicle Supplies and New Parts

SIC 5013

This industry classification is comprised of establishments primarily engaged in the wholesale distribution of motor vehicle parts and supplies, such as accessories, tools, and equipment. Establishments primarily engaged in the distribution of used motor vehicle parts are classified in SIC 5015: Motor Vehicle Parts, Used.

NAICS CODE(S)

441310

Automotive Parts and Accessories Stores

421120

Motor Vehicle Supplies and New Part Wholesalers

INDUSTRY SNAPSHOT

In essence, the auto parts industry concentrates on two different markets. One side consists of several tiers of original equipment manufacturers (OEMs) that supply automobile manufacturers with parts for new automobiles. After suffering through economically-difficult times during the early 2000s due to a recessive economy, by the mid-2000s, the auto parts industry still had found little relief, despite an upswing in the economy and record new car sales. Overcapacity, skyrocketing price of supplies, extreme downward price pressures from vehicle manufacturers, and increased competition from overseas competitors had squeezed the price margin for parts manufacturers. Both Delphi and Visteon, the nation's largest parts manufacturers, were struggling to remain in the black, and a number of smaller operations either closed shop or sold out to the bigger players.

In addition to OEMs, other manufacturers and wholesalers serve the automotive aftermarket, providing replacement parts for used vehicles. This sector of the industry continues to experience consolidation. According to the Automotive Aftermarket Industry Association, total automotive aftermarket retail sales grew by 3 percent during 2003 to $244.6 billion. However, this figure includes more than just parts and accessories. When service repair and tire sales are factored out, this figure is about $35 billion.

BACKGROUND AND DEVELOPMENT

Traditionally, the distribution process for delivering motor vehicle supplies and parts to the marketplace took place in three steps. Manufacturers sold products to warehouse distributors, who then sold them to "jobbers" who, in turn, sold them to customers such as service stations. Jobbers offered benefits such as the extension of credit and wholesale discounts, and often sold items at retail price to the "do-it-yourself" market segment. Warehouse...