Service Parts - Summary

The Service Parts industry is crucial for durable goods - this is particularly true for the largest category of durable goods: vehicles.  Service parts - that is, the parts for repair and maintenance - is a large business and even more significant in terms of its profitability. 

Economic Perspective

The (U.S.) Department of Commerce reports the annual combined parts and service revenues for U.S. automotive maintenance and repair at approximately $200 million. Various white papers report that service parts account for roughly half of automakers’ earnings and over half of franchised dealership profits. And NADA measured 2010 dealership Fixed Operations revenue at $78 billion – of that, $43 billion is attributed to parts.

Over 100 firms offer systems and services to boost U.S. automotive OEM service parts operations efficiency, revenue and customer satisfaction.  The total value of service parts systems and services whether provided to automakers, dealerships or other channel partners, may reach $1 billion annually.  In aggregate, franchise dealership systems (and services) that enable service parts operations generate revenues exceeding $ 250 million annually in North America.

Stakeholders

The major categories of service parts stakeholders are:

Descriptions of the individual processes and systems are provided  in the Service Parts – Stakeholders Page.

Additional Service Parts Topics