2013 United States Automotive Technicians’ Choice


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2013 United States Automotive Technicians’ Choice

  1. 1. 2013 United States Automotive Technicians’ Choice Opportunities in the Automotive Tools Market Executive Summary NCFB-18 September 2013
  2. 2. Research Team Lead Analyst Contributing Analyst Karolina Olszewska Stephen Spivey Research Analyst, Customer Research Program Leader, Automotive & Transportation Research Director Corporate Communications Tonya Fowler Jeannette Garcia Global Director, Customer Research Corporate Communications, North America +1.210.477.8427 Jeannette.Garcia@frost.com NCFB-18 2
  3. 3. Contents Section Slide Numbers Research Objectives and Methodology 4 Executive Summary 9 Profile 14 Appendices 17 The Frost & Sullivan Story 19 NCFB-18 3
  4. 4. Research Objectives and Methodology NCFB-18 4
  5. 5. Research Objectives Overall, this research study will identify trends within the automotive tools market for the following products: • Power tools • Hand tools • Handheld diagnostic tools • Pneumatic/air tools • Tool storage devices Specifically, it will: • Measure factors driving selection of the five auto tool products. • Identify which of the five products has the greatest growth opportunities. • Determine brand usage and preference trends within each of the five auto tool categories. • Understand how each product brand is perceived and how those perceptions may drive selection. • Evaluate purchase channel opportunities for each of the five auto tool products. Source: Frost & Sullivan NCFB-18 5
  6. 6. Methodology Methodology A survey was administered using a computer-assisted telephone interview methodology during May 2013. Sample In total, 517 automotive technicians were surveyed. To qualify as a respondent, an automotive technician must work at least 30 hours per week and physically work on vehicles on at least a weekly basis. Respondents represent automotive repair shops throughout the United States. Shop types include new-vehicle dealership service departments, franchised auto repair shops, and independent auto repair shops. Research History Frost & Sullivan has been tracking the automotive repair tool industry via automotive technicians since 2008. When applicable, this research compares data trending as far back as 2008. The following slide displays the total sample sizes of the past collected data. Of notable mention, this research was not conducted in 2010; thus, no historical data are presented for 2010. Source: Frost & Sullivan NCFB-18 6
  7. 7. Methodology (continued) Sample Sizes of Past and Current Research 2008 2009 2011 2012a/ 2013b/ Handheld diagnostic tools n=333 n=282 n=318 n=345 n=405 Hand tools n=291 n=385 n=376 n=327 n=405 Pneumatic/air tools n=360 n=339 n=371 n=336 n=406 Power tools n=344 n=336 n=337 n=314 n=400 Tool storage devices n=291 n=346 n=306 n=333 n=404 Total sample n=400 n=400 n=400 n=401 n=517 a/ In 2012, due to additional survey length, automotive technicians were only asked questions for up to four automotive tool products for which they regularly use. Given that there are five products surveyed in this research, those technicians who regularly use all five were randomly selected to answer questions only about four product areas. b/ In 2013, quotas were set by tool category, to ensure fairly equal representation (minimum of 400 per tool category). Since automotive technicians tend to use multiple automotive tools, the total sample size for 2013 exceeds past waves’ total sample sizes. Reporting Notes Due to rounding, percentages in charts and tables may not sum to 100. Source: Frost & Sullivan NCFB-18 7
  8. 8. Automotive Technician Profile: Shop Type and Region Similar to past waves, the largest proportion of automotive technicians surveyed represents independent automotive garages or repair shops and are located in the South region. Automotive Technician Profile by Shop Type: US, 2013 An Automotive Dealership Other 1% 1% A Franchise Automotive Garage or Repair Shop 8% Automotive Technician Profile by Region: US, 2013 West 25% Northeast 20% Midwest 24% An Independent Automotive Garage or Repair Shop 91% Base: All respondents (n=517). Q2. Which of the following best describes the establishment you work for? Q4. Which state do you live in? (Coded to regions.) NCFB-18 South 31% Source: Frost & Sullivan 8
  9. 9. Executive Summary NCFB-18 9
  10. 10. Opportunities in the Automotive Tools Market Overall, while fewer handheld diagnostic tools are currently owned, they are on a projected higher growth rate than other tools/devices. Conversely, the number of hand tools already owned is significant, but they have the lowest anticipated growth rate. Next Year’s Anticipated Growth Rate of Ownership Opportunities in the Automotive Tools Market: US, 2013 14% Handheld diagnostic tools 12% Power tools 10% 8% Pneumatic/air tools 6% Hand tools* 4% 2% Tool storage 0% 0% 5% 10% 15% 20% 25% 30% Past Year’s Growth Rate of Ownership Note: Bubble size indicates number tools/devices currently owned. *Number of hand tools owned is 10 times what is shown, but adjusted to reflect appropriate growth rate opportunity compared with other tools/devices covered. NCFB-18 Source: Frost & Sullivan 10
  11. 11. Why Are Technicians Purchasing More Auto Tools? The most prevalent reason for purchasing more automotive tools within the next year is related to needing new tools, whether to keep up with the latest innovation/technology on vehicles or to replace older tools. Reasons for Planning to Purchase More Automotive Tools within Next Year: US, 2013 Most prevalent reason for purchasing more tools storage devices: Needing more storage space for all the new tools they plan to buy. Source: Frost & Sullivan NCFB-18 11
  12. 12. Brand Dominance Versus Fragmentation by Auto Tools Among all auto tools covered in this research, Snap-on is the most prevalently owned brand. Yet, Snapon’s dominance in the auto tools market varies, with its largest gap in the handheld diagnostic tools market. Conversely, the power tools market is moderately fragmented, with the smallest gap between the most prevalent and runner-up brand. Gap Analysis Between the Two Most Prevalent Brands Owned: US, 2013 Gap between most prevalent brand owned and runner-up brand Percent of most prevalent brand* 100% Percent of second most prevalent brand 88% 80% 69% 60% 66% 68% 50% 40% 20% 0% Power tools Hand tools Handheld Pneumatic/air diagnostic tools tools *Snap-on is the most prevalent brand owned across all auto tools surveyed. NCFB-18 Tool storage devices Source: Frost & Sullivan 12
  13. 13. Most Prevalent Purchase Channel Trends: Mobile Tool Distributor Overall, technicians most prevalently use mobile tool distributors for their auto tool purchases—led by hand tools. Regarding power tool purchases, mobile tool distributors are being threatened by another channel: mass merchant retailers. Most Prevalent Purchase Channel Trends: Mobile Tool Distributor: US, 2009–2014 Hand tools Pneumatic/air tools Power tools purchased via mass merchant retailers 90% 80% 71% 70% 68% 67% 65% 49% 60% 50% 40% 34% 30% 20% 10% 2009 2011 2012 2013 Question change in 2013—now ask for all brands owned, not just primary brand. Power tools Handheld diagnostic tools Tool storage devices 73% 68% 66% 63% 49% 35% 2014 Future intentions Note: This research was not conducted in 2010; thus, no historical data are presented for 2010 NCFB-18 Source: Frost & Sullivan 13
  14. 14. Profile NCFB-18 14
  15. 15. Shop and Technician Profile Total Sample Independent Garage/ Repair Shop Franchise Garage/ Repair Shop Automotive Dealership Northeast Midwest South West Average number of bays at shop 5 5 6 6 4 5 5 5 Average number of employees at shop 4 3 9 8 3 4 4 4 Average years of experience as technician 26 27 12 25 29 26 23 26 Average age of technician 47 49 33 47 51 48 44 48 Average annual income of technician $49,111 $49,061 $48,055 $59,285 $48,817 $44,266 Highest level of education of technician (most prevalent level) Trade/ Trade/ technical school technical and high school school (tie) Trade/ technical school Trade/ technical school Base: All respondents (n=517). Q40. Approximately how many bays does your garage/shop have? Q41. Approximately how many employees are employed at your garage/shop? Q42. Approximately how long have you been an automotive technician? Q43. What is your age? Q44. Which of the following categories best fits your annual income as a technician? Q46. What is the highest level of education or training you have completed? NCFB-18 Trade/ technical school $48,838 $54,419 Trade/ technical Trade/ school technical and high school school (tie) High school Source: Frost & Sullivan 15
  16. 16. Legal Disclaimer Frost & Sullivan takes no responsibility for any incorrect information supplied to us by manufacturers or users. Quantitative market information is based primarily on interviews and therefore is subject to fluctuation. Frost & Sullivan research services are limited publications containing valuable market information provided to a select group of customers. Our customers acknowledge, when ordering or downloading, that Frost & Sullivan Research Services are for customers’ internal use and not for general publication or disclosure to third parties. No part of this Research Service may be given, lent, resold or disclosed to noncustomers without written permission. Furthermore, no part may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the permission of the publisher. For information regarding permission, write to: Frost & Sullivan 331 E. Evelyn Ave. Suite 100 Mountain View, CA 94041 © 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan. NCFB-18 16
  17. 17. Appendices NCFB-18 17
  18. 18. Study Definitions Power Tool: Tools powered by a motor. Hand Tool: A device for doing a particular job that does not use a motor, but is powered solely by the person using it. Handheld Diagnostic Tool: Reads a vehicle's onboard diagnostic and has reporting capability. Specifically, it provides real-time data in addition to a standardized series of diagnostic trouble codes. Pneumatic or Air Tool: A tool activated by a gas, usually compressed air supplied by a gas compressor. Tool Storage Device: A tool box, roll cab, cart, or other unit that is used for storing tools. Quality: Relates to Original Equipment (OE) fit, form, and function. The closer something matches the original part, the higher the perceived quality. Reliability: Relates to service life. A reliable product is one that is less susceptible to premature failure and has comparatively low warranty claims. Innovation: Relates to coming up with new ideas or products and making continual improvements. Source: Frost & Sullivan NCFB-18 18
  19. 19. The Frost & Sullivan Story NCFB-18 19
  20. 20. The Frost & Sullivan Story Pioneered Emerging Market & Technology Research Partnership Relationship with Clients Visionary Innovation • Global Footprint Begins • Growth Partnership Services • CEO 360 Visionary Perspective • Country Economic Research • GIL Global Events • GIL Think Tanks • Market & Technical Research • GIL University • GIL Global Community • Best Practice Career Training • Growth Team Membership™ • Communities of Practice • MindXChange Events • Growth Consulting NCFB-18 • Mega Trends Research 20
  21. 21. What Makes Us Unique Focused on Growth All services aligned on growth to help clients develop and implement innovative growth strategies Industry Coverage Continuous monitoring of industries and their convergence, giving clients first mover advantage in emerging opportunities Global Footprint More than 40 global offices ensure that clients gain global perspective to mitigate risk and sustain long term growth 360 Degree Perspective Proprietary Team Methodology integrates 7 critical research perspectives to optimize growth investments Career Best Practices Career research and case studies for the CEOs’ Growth Team to ensure growth strategy implementation at best practice levels Visionary Innovation Partner NCFB-18 Close collaboration with clients in developing their research based visionary perspective to drive GIL 21
  22. 22. TEAM Methodology Frost & Sullivan’s proprietary TEAM Methodology ensures that clients have a complete 360 Degree PerspectiveTM from which to drive decision making. Technical, Econometric, Application, and Market information ensures that clients have a comprehensive view of industries, markets, and technology. Technical Real-time intelligence on technology, including emerging technologies, new R&D breakthroughs, technology forecasting, impact analysis, groundbreaking research, and licensing opportunities. Econometric In-depth qualitative and quantitative research focused on timely and critical global, regional, and country-specific trends, including the political, demographic, and socioeconomic landscapes. Application Insightful strategies, networking opportunities, and best practices that can be applied for enhanced market growth; interactions between the client, peers, and Frost & Sullivan representatives that result in added value and effectiveness. Market Global and regional market analysis, including drivers and restraints, market trends, regulatory changes, competitive insights, growth forecasts, industry challenges, strategic recommendations, and end-user perspectives. NCFB-18 22
  23. 23. Our Global Footprint 40+ Offices Scanning the Globe for Opportunities and Innovation NCFB-18 23
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