Holley Performance Products Competition
Now Viewing Holley Performance Products's competition in: Automobile Parts and Accessories Manufacture (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What percentage of sales is to the aftermarket (where margins are often higher)? - Some suppliers sell both to OEMs and the higher-margin aftermarket.
What percentage of the company's business is do-it-yourselfers (DIY)? - While the volume of DIYs hasn't changed, the frequency that they work on their vehicles has declined, from monthly to less than once every two to three months.
What percentage of sales is domestic versus export? - Many auto parts companies, once limited to a few OEMs, now have the opportunity to sell to foreign OEMs that have plants in the US. Many tier 2 suppliers now ship parts across borders.
How many large customers does the company have? Is there a dominant customer? - Customer concentration is common.
How does the company defend itself from part counterfeiters? - Auto part counterfeiting results in lost sales of more than $12 billion worldwide for the auto industry, according to the FTC. Part counterfeiters sell parts that are packaged as if they're directly from the automakers, but rarely meet performance standards.
Has the company invested in motorsports marketing programs? - The automotive aftermarket and motorsports have teamed for mutual benefit. Auto part manufacturers provide parts, participants, and sponsorships on the racetrack in exchange for marketing, merchandising, and parts testing.
Competitive Landscape
Demand for auto parts is driven by new car sales, which are strongly affected by interest rates, and by the replacement market. Company profitability industry depends partly on the difficulty of manufacturing products and partly on demand volume, since many costs are fixed. Small companies can compete successfully by focusing on a small number of products or some highly technical ones.
Full Industry Overview For Automobile Parts and Accessories Manufacture
Business Challenges
CRITICAL ISSUES
Customer Concentration - Consolidation of car companies and demand for larger and more complicated component assemblies have created larger, but fewer, auto part suppliers. To cut costs, auto manufacturers have been awarding a larger share of business to a smaller number of large tier 1 auto part suppliers. As large suppliers become the de facto manufacturing arms of car companies, they gain greater power over smaller suppliers. Many tier 2 and tier 3 suppliers depend financially on a few large contracts.
International Competition - In recent years, the volume of car parts manufactured in low-cost countries like Mexico, China, and Taiwan has increased rapidly. The largest importers to the US are Canada, Mexico, and Japan; imported car parts now hold about 30 percent of the US market. Many US suppliers reduce costs by moving production to lower-cost countries or by investing capital in more efficient facilities and equipment.
Industries Where Holley Performance Products Competes
- Automotive & Transport
- Auto Parts Manufacturing(primary)
