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Monday, June 9, 2025

Fleet managers will spend more on Parts over the next five years

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Fleet managers will spend more on remanufactured components over the next five years than they ever have before, even as they buy fewer parts, according to research firm Frost & Sullivan.

The firm predicts North American suppliers will ship fewer remanufactured engines, transmissions, and clutches due to โ€œimproving original equipment quality and increasing competition from new replacement parts. However, the reportโ€™s authors say the number of shipments of remanufactured turbochargers will increase 2.1% annually.

But even as the overall number of shipments falls, Canadian and American parts buyers will see an increase in unit pricing, which the study predicts will range from 1.5% to 5.5% per year.

The studyโ€™s authors say that price increases will be driven by a number of factors, including โ€œthe increased amount of electro-mechanical contentโ€ in the systems โ€œto make them compliant with fuel economy and emissions regulations.โ€

The study also predicts โ€œindependent remanufacturers will enhance their competitive position as they develop their technological expertise and enjoy greater access to cores,โ€ while at the same time it warns that โ€œmarket consolidation will accelerate as larger manufacturers and distributors will acquire smaller competitors.