THE U.S. MOTOR VEHICLE PARTS AND ACCESSORIES MANUFACTURING INDUSTRY: NATIONAL TRENDS AND CHARACTERISTICS An Initial Report of the Center for Competitive Analysis

Introduction This report from the Center for Competitive Analysis (CCA) of the University of Missouri is intended to provide background information about the Motor Vehicle Parts and Accessories Manufacturing (MVPA) industry. This introductory section will report some basic information about the industry. The MVPA industry is classified under SIC code 3714. Firms in this industry are often split into two major groups: original equipment manufacturers (OEMs), who make parts that are installed in newly manufactured motor vehicles, and aftermarket manufacturers, who make parts that can replace original equipment when repairs are necessary, as well as additional parts not included with new vehicles (e.g., bed covers for pickup trucks). The MVPA industry is an important component of the U.S. economy. In 1997, industry shipments accounted for slightly over 4% of total U.S. manufacturing shipments, and the 691,000 jobs provided by the industry accounted for almost 4% of total manufacturing employment. According to 1992 U.S. Census data for SIC code 3714, there were 2,714 establishments nationally with a total of $75.0 billion in sales, or an average of about $27.6 million per establishment. Also in1992, industry concentration was moderate, with the four largest firms controlling 48% of industry sales and the fifty largest controlling 79%. The industry’s HHI was 943, which is below the level that might trigger antitrust concerns about concentration and its impact on competition. For comparison note that the HHI indices for related or similar industries are generally higher. The 1992 HHI for SIC code 3711 (motor vehicle bodies, which includes assembly of all types of vehicles) was 2,676. For SIC code 3724 (aircraft engines and parts) it was 2,378, for SIC code 3751 (motorcycles, bicycles, and parts) it was 1,419, and for SIC code 3728 (aircraft parts and equipment not elsewhere classified) it was 772.