AAPEX: Aftermarket businesses expect demand to grow but uncertainity remains a challenge

While 6 in 10 aftermarket businesses expect the demand for aftermarket parts to grow this year, uncertainty remains the top challenge facing the aftermarket industry, according to new survey results from the Automotive Aftermarket Products Expo (AAPEX). 

The 2026 State of the Automotive Aftermarket Survey Report found that 41% of aftermarket businesses expect demand for their product to increase a little in 2026, while 20% expect it to increase by a lot. 

“A majority say demand for aftermarket products and services will grow, as consumers hang onto their existing cars longer because new vehicle prices have risen,” the report says. ”Yet, the aftermarket also faces a number of challenges. Many aftermarket businesses are grappling with supply chain diversification, carrying higher inventory levels, and developing competitive pricing. Uncertainty appears in questions about part quality, investment in EVs, and addressing the shortage of skilled talent.” 

Respondents said that uncertainty is their top challenge (45%) in 2026, followed by attracting skilled talent (36%) and developing competitive pricing (31%).

Kristin Dziczek, a Federal Reserve Bank of Chicago policy advisor, described the 2025 auto industry as a shock absorber during the Automotive Insights Symposium held at the Detroit branch last month. 

“Last year, many of us didn’t know what to expect in 2025,” Dziczek said. “We were initially cautiously optimistic, but that quickly faded as the policy environment rapidly changed, and the uncertainty started to rise. Industry leaders put many plans on hold, and they were anticipating some major bumps last year.” 

While Dziczek said that uncertainty started to fade in the late part of last year/early part of 2026, it seems that the aftermarket parts industry is still feeling that uncertainty. 

Amid trade uncertainty, 7 in 10 respondents said they’ve either completed, are in the process, or are in the planning stages of diversifying their supply chain, the survey says. 

Only about 6% have completed restructuring, the survey shows. Yet, 46% said they are currently in the process, and another 18% said they are in the planning stages. About 30% said they have no plans to restructure. 

A majority of survey respondents (53%) also said they are seeing the demand for lower-cost parts and services grow. 

“However, quality is still the ‘top influence’ for customer preference, suggesting many buyers are shopping for value,” the report says. 

In an attempt to attract more talent, about 30% of respondents said they are offering more training, 27% said they are increasing compensation, and 22% said they are improving benefits. 

However, 25% said they aren’t taking any actions offered by the survey, with one respondent saying they “just stopped looking for help.” 

Some of the businesses have turned to AI for help, with 21% saying they’ve implemented AI tools and 20% saying they are in the planning stages. Customer service (60%) is the top use of AI for those who have implemented it, followed by inventory management (42%) and product development (32%).

Image

Photo courtesy of Aleksandr Kondratov/iStock