Since the onset of the pandemic, the supply chain has been shaken by disruption, inflation and other economic challenges. Global manufacturing prices have skyrocketed due to supply constraints, leaving consumer and commercial buyers searching for alternatives to buying new products. Manufacturers are feeling the pressure and have seen purchasing demand drop across virtually every industry. These supply chain pitfalls keep many manufacturing companies on their toes and simultaneously boost growth for companies that manufacture and distribute spare parts.
From the automotive industry to aviation and beyond, the turbulent economy has both consumers and businesses looking for ways to repurpose and extend the lifespan of their purchases.
For consumers, the trend of driving older cars for longer periods of time isn’t slowing down. According to IHS Markit research, the average vehicle age increased from 11.9 years in 2020 to 12.1 years in 2021 and is expected to rise to 12.6 years by 2025. The demand for used vehicles is also reflected in recent price increases earlier this year. As consumers hold on to their current vehicles for longer, the demand for spare parts subsequently continues to rise.
In the aviation industry, strong travel demand and supply chain disruptions have forced airlines to fly older planes longer. Spare parts aviation companies such as Raytheon have experienced increased demand –– from companies including Boeing Co and Airbus SE –– for high-margin, after-market services.