Market trends
Steering, suspension and chassis parts are expected to see definite sales growth in the next several years, and as the market consolidates to fewer suppliers, those who sell these parts will benefit.Demand for steering and suspension components is expected to grow 2.5 percent annually through 2010, eventually reaching $3.3 billion, according to research firm The Freedonia Group, which foresees long-term growth rates.
Most steering systems comprise a steering wheel column housing and shaft, as well as a steering gearbox, tie rods and tie rod ends; and in rack-and-pinion systems, many components are in a single unit. Most vehicles also are equipped with power steering systems with an engine-driven pump that connects steering gears via hydraulic hoses and couplings.
Electrical power steering systems offer improved fuel savings due to their lighter weight and lower parasitic power loss characteristics when compared to conventional hydraulic systems. Some suppliers tout 5 percent fuel efficiency gains, The Freedonia Group adds in a report prepared for Aftermarket Business. Honda has been a leader in the introduction of electric power steering systems, first introducing it on its NSX sports car, the report notes.
The increased burden electric power steering systems place on the already overtaxed vehicle electrical power generation system and the additional cost compared to hydraulic systems are among the factors hindering widespread use of these systems.
Many vehicles today feature electronically controlled hydraulic power steering systems that can adjust power steering boost to provide more at lower speeds and less at highway speeds when it is not required.
Import applications are reportedly moving away from ball joints as a replacement item to control arm assemblies, along with any required bushings. These control arms are significant in size and take up a lot of shelf space. There's also an increased demand and coverage of stabilizer links, which are difficult for WDs to store due to SKU proliferation.
Suspension trends
Distribution channel consolidation, limited product differentiation and cheaper Asian imports are restraining prices in the suspension system category, says research firm Frost & Sullivan. Traditional and direct supply channels will gain the most traction with these parts, and three-step distribution is expected to lose market share to the two-step distribution channels, the firm adds.
Still, the firm expects the performance suspension parts segment to grow 8 to 10 percent during the next five years due to an influx of high-end coil-over suspension kits from Japan and Europe.
When it comes to traditional suspension systems, the shocks and struts, though exposed to harsh dynamics, often are neglected. The presence of a worn shock or strut on a vehicle can degrade steering, stopping and stability performance. This is a powerful safety message for consumers and deserves added attention among parts professionals and their professional accounts.
The key challenges associated with strut replacement are time and labor. Some brands now offer application-engineered quick-replacement strut assemblies that save 50 percent or more time per vehicle corner. This has transformed the economics of strut replacement and is expected to lead to strong increases in this repair category. In fact, the brand that first introduced this concept has had to quadruple production to meet demand.
Research clearly shows that consumers who authorize ride control replacement expect their vehicles to ride "like OE" after the repair. This has led to the development of products that are "valved" to the specific OE ride and handling characteristics of each vehicle.
The wholesale channels for all items in this category should look out for sales growth, as technology will drive repairs away from the DIYer to those who visit repair shops and dealerships.
Installation tips
• Flush regularly. When a tech repairs or replaces a steering system, it's important to flush the system with OEM-approved fluids. Flushing the system is encouraged with every change of a pump, gear or steering hose. Old power steering fluid actually can disburse contaminants throughout the steering system, shortening the life cycles of pumps and gears.
• Think hardware. Counter staff should remind customers to get the appropriate hardware for the job. Many suspension pieces undergo extreme temperature changes, which deteriorate suspension-attaching pieces over time.
• Don't fight with rusty fasteners. When removing old shocks, recommend thoroughly soaking all fasteners in penetrating oil prior to performing the work. When removing shaft mount shock absorbers, a hammer and chisel might be needed to remove the fastening nut. When tightening mounts that use rubber bushings and washers, they should be tightened only until the bushing expands to the diameter of the washer. Additionally, never use pliers to grasp the shaft of the shock. This will cause the shaft to damage the seal and the seal will leak fluid.
Selling tips
• Suggest the add-ons. It's important that counterpeople recommend related components when selling steering parts. For example, outer tie rods should be replaced at the same time a new rack-and-pinion unit is replaced.
• Sell in the intervals. Industry experts now agree that OE shocks and struts should be inspected every 12,000 miles and replaced after 50,000 miles. This industry benchmark is based on extensive research into the wear characteristics of OE ride control units, and is expected to help technicians and shop owners sell ride control service. The most recent endorsement of this benchmark came from the Motorist Assurance Program (MAP) and is prominently advertised.
• Out with the old. When customers are replacing steering systems, be sure to suggest using new fluids that match vehicle manufacturer recommendations.
• A pair of shocks is a winning hand. Always sell shocks and struts in pairs. If one needs replaced, chances are the other one will soon go bad.
• Know your steering parts. When a customer asks for a tie rod, ask him or her if they need a steering rack boot if the product is rack-and-pinion. Ask as many questions as possible to prevent parts returns so the tech can properly complete the repair.
An e-necessity
• Electronic catalogs. Due to the complexity of steering, suspension and chassis components, having up-to-date electronic catalogs can help counterpeople make a proper recommendation from either OEM or aftermarket channels.
Sources
ACDelco,
www.acdelco.com
