2013 united states automotive technicians’ choice

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2013 United States Automotive Technicians’ Choice September 2013 NCFB-18 Opportunities in the Automotive Tools Market Executive Summary

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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

[email protected]

Corporate Communications

3 NCFB-18

Contents

Section Slide Numbers

Research Objectives and Methodology 4

Executive Summary 9

Profile 14

Appendices 17

The Frost & Sullivan Story 19

4 NCFB-18

Research Objectives and Methodology

5 NCFB-18

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

6 NCFB-18

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

8 NCFB-18

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

9 NCFB-18

Executive Summary

10 NCFB-18

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

11 NCFB-18

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

12 NCFB-18

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

13 NCFB-18

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

14 NCFB-18

Profile

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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

16 NCFB-18

Legal Disclaimer

© 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.

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

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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

17 NCFB-18

Appendices

18 NCFB-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

19 NCFB-18

The Frost & Sullivan Story

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21 NCFB-18

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