Industry Analysis & Industry Trends
The industry has endured a bumpy road over the past five years, suffering through the recession as the entire automotive sector crashed. Because the industry primarily depends upon the level of automotive production, a revival in demand for cars over the next five years will drive modest revenue growth. Industry demand will benefit from increasing regulation; however, regulation poses a threat to profitability and firms will incur the rising cost of sourcing products as the cost of production increases at the manufacturing level to meet stricter standards... purchase to read more
Industry Report - Starting a New Business Chapter
There are no licensing requirements, government regulations or resource constraints that are significant enough to prevent firms from entering the Auto Parts Wholesaling industry. Operational expenses for wholesaling companies include running distribution facilities and hiring salespeople to work directly with clients. The costs of establishing distribution facilities and sourcing skilled labor to sell automotive parts may deter some firms from entering. Additionally, the cost of competing with other firms that are significantly entrenched in downstream markets may deter some firms from entering the industry. Building a viable sales base depends largely upon brand recognition and the ability to forge supply contracts with mass merchandisers... purchase to read more