trends |
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Checking the Trends Report , 6 months in
Annually , the team at Ideal and c-Systems creates its OPE Trends Report , a collection and analysis of data on the industry ’ s performance and directional trends . The most recent report was published at the end of Sept . 2022 .
In his introduction to the information presented , Ajay Thakur , general manager of Ideal Computer Systems and c-Systems Software Inc ., used words such as “ uncertainty ,” “ difficult ,” “ challenging ,” and of course , “ pandemic .” These words were used often over the last three years , and the conditions that make those words popular also make trend reporting difficult , at best . That ’ s why we want to review this trend report before the company publishes its next one . Partly to check on their analysis , and to help you make your own analysis for best business performance for the remainder of 2023 . When combined with our review of our Q4 Dealer Survey in this issue , you get a thorough industry analysis .
|
2500
2000
1500
1000
500
0
-500
-1000
|
6 %
618 330 39
2006
|
9 %
695 378 46
395 51
679
1 %
605 397 48
AVERAGE OPE DEALER PARTS AND SERVICE SALES
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2007
2008 2009
2010
|
2011 |
2012 2013 2014 2015 2016
2017 2018 2019 2020 2021
2022
|
|
|
EST |
-6 %
6 %
47
409
663
8 %
729 431 56
754 449 60
4 %
839 474 68
915 489 77
1000 510 84
1000 512 89
1068 510 90
Avg . Wholegood Sales Avg . Parts Sales Avg . Service Sales
9 %
7 %
8 %
0 %
4 %
1098 521 104
3 %
1129 549 115
4 %
12 %
103
1297 601
1481 626 132
12 %
1326 628 144
-6 %
Avg . Total Growth
15 %
13 %
11 %
9 %
7 %
5 %
3 %
1 %
0 %
-1 %
-3 %
-5 %
-7 %
Source : Ideal Computer Systems
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Let ’ s Jump In
“ Based on our OPE Market Data reporting , we see a more optimistic year ahead for the industry ,” writes Thakur in his report intro . “ While revenue growth of OPE dealers may have been down in 2022 over 2021 , we are still seeing a strong average growth trend for the industry over the years prior . What ’ s more , with advancements in technology that will help dealers make more informed and cost-effective decisions as well as improve efficiency , we see a lot of opportunities for dealers in the year ahead . When in doubt , look at the data .”
Baseline Data
Covid changed a number of things about business , and one that will always be remembered is the pandemic ’ s impact on data like this . The sales growth in 2021 was so strong compared to 2020 , that it can make 2022 sales information look bad in comparison . But last year ’ s sales , as reported here for 107 OPE dealers , were still stronger than 2020 , for sales of wholegoods , parts , and service . Note that since the report was released before 2022 was complete this report estimates the sales data for 2022 . In a follow-up report shared with OPE Business , Constellation ’ s Dave Johnson shared that the company ’ s estimate of a 7 percent sales decline year-over-year was in reality a 6 percent drop YOY . A slightly better gain over 2020 year-end sales .
This trends report brings special attention to pricing which is crucial to sales success and to a dealer ’ s profitability . Pricing is also a trend to watch through the remainder of 2023 , with inventory issues and parts-price inflation . When looking at the yearover-year inflation of the selling prices of OPE market parts , this report shows continuous and increasing prices for the four quarters counting Q3 2021 through Q2 2022 . Those price increases , respectively , were 5.3 %, 7.9 %, 10 %, and 12.6 % ( tracking 82,000 part numbers at 2,150 OPE dealers ).
While OPE dealers do not have complete control of price fluctuations , you do need to monitor pricing closely for two things ( at least ). One , keep your price lists are up to date , and two , monitor consumers reactions to inflationary activities for goods they consumer regularly , from eggs to motor oil . Inflation has slowed throughout the beginning of 2023 . The annual inflation rate in the U . S . slowed to 6 % in February of 2023 ; that ’ s still high but is the
24 OPE Business April 2023 www . OPEBusiness . com