Car Parts Dealers: Industry Overview and Key Trends

The motor vehicle and parts dealers subsector plays a crucial role within the broader retail industry. Specifically, Car Parts Dealers are essential businesses that provide the necessary components for vehicle maintenance, repair, and upgrades. These establishments operate from physical locations, often showrooms or open lots, displaying a wide array of automotive parts and accessories. Understanding this sector is vital for anyone involved in the automotive industry, from consumers to business professionals.

Understanding Car Parts Dealers within the Motor Vehicle and Parts Dealers Subsector

Car parts dealers are categorized under the North American Industry Classification System (NAICS) as part of the Motor Vehicle and Parts Dealers subsector (NAICS 441), which falls under the larger retail trade sector. This subsector is further divided into industry groups, with car parts dealers primarily classified under Automotive Parts, Accessories, and Tire Stores (NAICS 4413). While the broader subsector includes automobile dealers and other motor vehicle dealers, focusing on NAICS 4413 allows us to specifically analyze businesses dedicated to the retail of automotive parts and related products. These dealers are distinct because they specialize in selling components rather than complete vehicles, catering to both individual consumers and automotive service providers.

Workforce and Employment in Car Parts Dealerships

The car parts dealer industry is a significant employer, providing numerous jobs across various roles. Data from employer surveys offers valuable insights into the workforce within this subsector.

Data series Oct.2024 Nov.2024 Dec.2024 Jan.2025
Employment (in thousands)
Employment, all employees (seasonally adjusted) 2,052.4 2,052.5 2,051.4 (Preliminary) 2,055.9 (Preliminary)
Employment, production and nonsupervisory employees 1,715.5 1,715.6 1,714.1 (Preliminary)

Source: Current Employment Statistics

While these figures represent the entire Motor Vehicle and Parts Dealers subsector, they highlight the scale of employment within industries that include car parts dealers. Specifically related to car parts businesses, key occupations include:

Data series Employment, 2023
Parts salespersons 183,640
Automotive service technicians and mechanics 305,520
Retail salespersons 318,070
First-line supervisors/managers of retail sales workers 92,640
Cleaners of vehicles and equipment 80,420

Source: Occupational Employment and Wage Statistics

These roles are crucial for the daily operations of car parts dealerships, from sales and customer service to inventory management and technical support. The demand for skilled parts salespersons and service technicians remains a significant aspect of this industry.

Earnings and Hours for Car Parts Dealer Employees

Understanding the earnings and hours worked by employees in the car parts sector is essential for both employees and employers. The following data provides an overview of average hourly earnings and weekly hours within the broader Motor Vehicle and Parts Dealers subsector.

Data series Sep.2024 Oct.2024 Nov.2024 Dec.2024
Average hourly earnings $32.26 $31.07 $31.14 $31.55 (Preliminary)
Average weekly hours 37.2 37.0 37.2 37.3 (Preliminary)

Source: Current Employment Statistics

This data reflects the average across all employees in the subsector. When focusing on production and nonsupervisory roles, which are more representative of typical car parts dealer staff, the figures are as follows:

Data series Sep.2024 Oct.2024 Nov.2024 Dec.2024
Average hourly earnings $26.83 $26.32 $26.47 $26.80 (Preliminary)
Average weekly hours 36.9 36.8 36.9 37.3 (Preliminary)

Source: Current Employment Statistics

Furthermore, examining earnings by occupation provides a more detailed view relevant to car parts dealers:

Data series Wages, 2023
Hourly Median Hourly Mean
Parts salespersons $16.85
Automotive service technicians and mechanics $23.59
Retail salespersons $18.45
First-line supervisors/managers of retail sales workers $27.55
Cleaners of vehicles and equipment $15.95

Source: Occupational Employment and Wage Statistics

These figures illustrate the varying wage levels across different roles within the car parts industry, reflecting the skills and responsibilities associated with each occupation.

Workplace Safety in Car Parts Dealer Environments

Ensuring workplace safety is paramount in any industry. Data on work-related fatalities, injuries, and illnesses provides crucial information for car parts dealers to maintain safe working environments.

Data series 2023
Fatalities
Number of fatalities 72

Source: Injuries, Illnesses, and Fatalities

While the fatality data is for the broader subsector, it underscores the importance of safety measures. Looking at injury and illness rates specifically:

Data series 2023
Rate of injury and illness cases per 100 full-time workers
Total recordable cases 2.7
Cases involving days away from work, job restriction, or transfer 1.5
Cases involving days away from work 1.0
Cases involving days of job transfer or restriction 0.5

Source: Injuries, Illnesses, and Fatalities

These rates highlight the common types of workplace incidents in industries like car parts dealing, emphasizing the need for robust safety protocols and employee training to minimize risks.

Pricing Trends in the Car Parts Industry

Understanding price fluctuations is vital for car parts dealers to manage inventory and pricing strategies effectively. The Producer Price Index (PPI) tracks changes in prices received by domestic producers.

Data series Oct.2024 Nov.2024 Dec.2024 Jan.2025
Producer price index 159.790 (Preliminary) 159.333 (Preliminary) 160.288 (Preliminary) 161.132 (Preliminary)
Percent change from previous month 0.6% (Preliminary) -0.3% (Preliminary) 0.6% (Preliminary) 0.5% (Preliminary)

Source: Producer Price Indexes

This data indicates recent price trends in the sector, which car parts dealers can use to inform their purchasing and pricing decisions. Monitoring these trends helps businesses adapt to market changes and maintain competitiveness.

Industry Size and Productivity of Car Parts Dealers

The scale and efficiency of the car parts dealer industry are reflected in the number of establishments and productivity metrics.

Data series 3rd quarter 2023 4th quarter 2023 1st quarter 2024 2nd quarter 2024
Number of establishments (Private industry) 124,054 124,122 124,456 (Preliminary) 125,548 (Preliminary)

Source: Quarterly Census of Employment and Wages

The consistent number of establishments indicates a stable and large industry presence. In terms of productivity:

Data series 2020 2021 2022 2023
Labor productivity, output per hour 5.4 6.1 -11.2 3.1
Hours worked -8.8 4.0 3.4 0.9
Output -3.9 10.3 -8.2 4.0
Unit labor costs 4.3 11.7 13.2 -5.0

Source: Productivity

These productivity figures reveal the dynamic nature of the industry, with fluctuations in output per hour and labor costs. Car parts dealers must adapt to these changes to maintain efficient operations and profitability.

Conclusion

The car parts dealer industry, as a vital component of the motor vehicle and parts dealers subsector, is characterized by its significant employment, evolving economic trends, and focus on workplace safety. By analyzing workforce statistics, earnings data, safety records, pricing indices, and productivity measures, stakeholders can gain a comprehensive understanding of this industry. For businesses operating as car parts dealers, staying informed about these key trends is crucial for strategic planning and sustainable growth in a competitive market.

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