Slow Rolling: Slowed growth in new car sales will hinder industry growth

The Auto Parts Manufacturing industry in California produces HVAC units, exhaust systems, air bags, wheels and other non-engine and non-transmission motor vehicle parts. Following steep declines during the recession, this industry has grown strongly over the five years to 2017. Increasing per capita disposable income and easier access to credit have spurred strong growth in new car sales, which has generated demand for auto parts produced by this industry. Moreover, this industry has also experienced strong pent-up demand coming out of the recession. These factors have enabled companies to grow revenue and profit during the past five years. An overall expanding economy has also supported industry demand...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 12-17
3.8%
Forecast Growth 17-22
Profit
Employment
7,694
Businesses
193

Industry Threats & Opportunities

  • Increasing per capita disposable income and easier access to credit have spurred demand and growth for the industry
  • Growth in this industry has largely been fueled by new car sales
  • Operators are not expected to benefit from continued pent-up demand from the recession
  • Industry Report - Industry Locations Chapter

    The top counties for industry activity are Los Angeles and Orange Counties, which account for 28.8% and 19.9% of industry establishments, respectively. Rounding out the remainder of the top four areas for industry activity are the Inland Empire and San Diego County, which account for 17.8% and 8.4% of industry establishments, respectively. The concentration of auto parts manufacturers in California is a reflection of the major industrial areas in the state, as well as the location of traditional auto manufacturing and distribution centers in California. These counties also reflect access to ports serving major export markets overseas in the Asia-Pacific region. For...purchase to read more.

    Additional Insights for the Auto Parts Manufacturing in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Auto Parts Manufacturing in California Industry are

  • Access to the latest available and most efficient technology and techniques
  • Effective cost controls
  • Undertaking technical research and development
  • IBISWorld analysts also discuss how external factors such as New car sales and Access to Credit in California in the Auto Parts Manufacturing in California industry impact industry performance..

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    What's in this report

    What is the Auto Parts Manufacturing in California Industry?

    Companies in this industry manufacture and rebuild a variety of motor vehicle parts and accessories in California. These parts include air bags, air conditioners, catalytic converters, exhaust systems, mufflers and resonators, radiators, radiator cores and wheels. Engines, tires, brakes, steering systems, interiors, suspensions, transmissions and automotive electronics are not included in this industry.

    Industry Products
  • HVAC systems
  • Filters and fuel tanks
  • Exhaust systems
  • New wheels
  • Air bags
  • Auto body parts
  • Other auto parts
  • Industry Activities
  • Manufacturing air bag assemblies
  • Manufacturing motor vehicle air conditioners
  • Manufacturing catalytic converters and engine exhaust
  • Manufacturing mufflers and resonators
  • Manufacturing radiators and cores
  • Manufacturing wheels (rims)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • New car sales
  • Access to Credit in California
  • Per Capita Disposable Income in California
  • Price of Gasoline in California

  • Current Performance
  • Strong and steady growth
  • Challenges remain
  • Chart: Revenue Growth

  • Industry Outlook
  • A gradual decline
  • Stable profit
  • Table: Auto Parts Manufacturing in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Auto Parts Manufacturing in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Car & Automobile Manufacturing
  • SUV & Light Truck Manufacturing
  • Truck & Bus Manufacturing
  • Auto Parts Wholesaling

  • Key Selling Industries
  • Aluminum Manufacturing
  • Inorganic Chemical Manufacturing
  • Iron & Steel Manufacturing
  • Paint Manufacturing
  • Screw, Nut & Bolt Manufacturing
  • Textile Mills

  • Products & Services
  • Other auto parts
  • Exhaust systems
  • HVAC systems
  • Filters and fuel tanks
  • Air bags
  • New wheels
  • Auto body parts
  • Chart: Auto Parts Manufacturing in California Industry Products and Services Segmentation

  • Major Markets
  • Automakers
  • Exports
  • Other
  • Chart: Major Market Segmentation for the Auto Parts Manufacturing in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Auto Parts Manufacturing in California

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Auto Parts Manufacturing in California Industry

  • Motorcar Parts of America Inc., Pirate Manufacturing Inc., Tenneco Inc., US Radiator Corp.,
  • Table: Motorcar Parts of America Inc. - financial performance
  • Table: Pirate Manufacturing Inc. - financial performance
  • Table: Tenneco Inc. - financial performance
  • Table: US Radiator Corp. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Auto Parts Manufacturing in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Auto Parts Manufacturing in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • New Car Sales (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Big Three
  • Another name for the top US automotive companies, which are General Motors, Ford and Chrysler.
  • Original Equipment Manufacturer (Oem)
  • A company that manufactures products or components that are purchased by a company and retailed under the purchasing company's brand name.
  • Scrappage Rates
  • The rate at which used vehicles are retired from active use.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Auto Parts Manufacturing in California is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Auto Parts Manufacturing in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Auto Parts Manufacturing in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Auto Parts Manufacturing in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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