OSS Predicts 2025! What Will Happen? You Won't Believe It!

Automotive Aftermarket Braces for a Challenging 2026, Survey Reveals

OSS Predicts 2025! What Will Happen? You Won't Bel...

The road ahead for the Automotive Aftermarket might be a little bumpy, according to a recent assessment by the Automotive Aftermarket Products and Services Association (OSS). The association just wrapped up its year-end review, diving into the sector's performance in 2025 based on insights from its members. And let's just say, the picture isn't entirely rosy.

The OSS Association's Year-End Sectoral Assessment Survey for 2025 paints a picture of slowing sales in the final quarter. Digging into the numbers, domestic sales experienced an average dip of 3.94% in dollar terms compared to the same period in 2024. Interestingly, distributors actually saw a slight uptick, with a 1.71% increase in dollar-based sales, but manufacturers took a bigger hit, reporting a hefty 9.87% decrease.

Looking ahead, the survey offers a glimpse of hope, albeit a small one. Projections for the first quarter of 2026 anticipate a modest 0.5% increase in domestic sales, again in dollar terms. Whether that's enough to offset the previous quarter's decline remains to be seen. As someone who's followed this sector for a while, I know these fluctuations can be cyclical, but it's definitely something to keep an eye on.

Beyond sales figures, the survey also highlighted challenges in payment collections. It seems getting paid on time is becoming more difficult. While slightly fewer members reported slower collections in 2025 compared to 2024 (43.5% vs. 45.1%), a significant portion still struggled. Roughly 13.8% saw improvements, but a concerning 42.5% experienced a deterioration in collection times. Cash flow is the lifeblood of any business, and delays in getting paid can quickly create problems.

On the employment front, the results were a mixed bag. Around 31.3% of members increased their workforce in 2025, while 37.5% held steady. Unfortunately, the remaining 31.3% had to reduce staff. Interestingly, manufacturers were generally more likely to increase employment, while a significant portion of distributors (29.3%) reported staff reductions. This discrepancy might indicate shifting dynamics within the supply chain.

So, what's causing these headwinds? According to the survey, "Excessive cost increases" were the top concern, cited by a whopping 81.3% of members. Following closely behind were "Cash flow problems" (66.3%) and "Loss of business and turnover" (52.5%). Other challenges included cargo costs, delivery problems, customs issues, employment-related hurdles, and regulatory changes. It sounds like everyone is feeling the pinch from inflation and supply chain disruptions.

Finally, the survey touched on investment plans. It appears that about 23.7% of members are considering new investments in the next three months. While the proportion of manufacturer members planning investments decreased slightly, the percentage of distributor members planning investments actually increased. Maybe distributors are seeing an opportunity to expand despite the overall challenges. It's definitely a space worth watching.