2013 united states automotive technicians’ choice
TRANSCRIPT
2013 United States Automotive Technicians’
Choice
September 2013
NCFB-18
Opportunities in the Automotive Tools Market
Executive Summary
2 NCFB-18
Research Team
Karolina Olszewska Research Analyst, Customer Research
Tonya Fowler Global Director, Customer Research
Lead Analyst
Research Director
Stephen Spivey Program Leader, Automotive & Transportation
Contributing Analyst
Jeannette Garcia Corporate Communications, North America
+1.210.477.8427
Corporate Communications
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Contents
Section Slide Numbers
Research Objectives and Methodology 4
Executive Summary 9
Profile 14
Appendices 17
The Frost & Sullivan Story 19
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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
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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
7 NCFB-18
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.
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
Methodology (continued)
Sample Sizes of Past and Current Research
Source: Frost & Sullivan
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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.
An Independent Automotive Garage or
Repair Shop 91%
A Franchise Automotive Garage or Repair Shop
8%
An Automotive Dealership
1% Other 1%
Northeast 20%
Midwest 24%
South 31%
West 25%
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.) Source: Frost & Sullivan
Automotive Technician Profile by Shop
Type: US, 2013 Automotive Technician Profile by
Region: US, 2013
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Opportunities in the Automotive Tools Market
0%
2%
4%
6%
8%
10%
12%
14%
0% 5% 10% 15% 20% 25% 30%
Nex
t Y
ea
r’s
An
tic
ipa
ted
Gro
wth
Rate
of
Ow
ners
hip
Past Year’s Growth Rate of Ownership
Opportunities in the Automotive Tools Market: US, 2013
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.
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.
Handheld
diagnostic tools Power tools
Pneumatic/air
tools
Tool storage
Hand tools*
Source: Frost & Sullivan
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Why Are Technicians Purchasing More Auto Tools?
Most prevalent reason
for purchasing more
tools storage devices:
Needing more storage
space for all the new
tools they plan to buy.
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
Source: Frost & Sullivan
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Percent of second most prevalent brand
Brand Dominance Versus Fragmentation by Auto Tools
50%
88%
69% 66% 68%
0%
20%
40%
60%
80%
100%
Power tools Hand tools Handheld diagnostic tools
Pneumatic/air tools
Tool storage devices
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*
Among all auto tools covered in this research, Snap-on is the most prevalently owned brand. Yet, Snap-
on’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.
*Snap-on is the most prevalent brand owned across all auto tools surveyed. Source: Frost & Sullivan
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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.
49%
49%
71% 73%
65% 63%
68% 68% 67% 66%
34% 35%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2009 2011 2012 2013 2014
Power tools Hand tools
Handheld diagnostic tools Pneumatic/air tools
Tool storage devices Power tools purchased via mass merchant retailers
Future intentions
Qu
es
tio
n c
han
ge
in
20
13
—n
ow
as
k
for
all
bra
nd
s o
wn
ed
, n
ot
just
pri
ma
ry b
ran
d.
Source: Frost & Sullivan Note: This research was not conducted in 2010; thus, no historical data are presented for 2010
Most Prevalent Purchase Channel Trends: Mobile Tool Distributor: US, 2009–2014
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Shop and Technician Profile
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?
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 $48,838 $54,419
Highest level of
education of
technician (most
prevalent level)
Trade/
technical
school
Trade/
technical school
and high school
(tie)
Trade/
technical
school
Trade/
technical
school
Trade/
technical
school
Trade/
technical
school
and high
school (tie)
Trade/
technical
school
High
school
Source: Frost & Sullivan
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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
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