Rising after-sales shipping costs

The Association of Automotive Aftermarket Products and Services (OSS) focused on the first quarter of this year with a survey it organized with the participation of its members. The sector, which left behind the first quarter of the year with increases in sales, exports and employment, is even more optimistic than in the second quarter. In the study; It was determined that there was an average increase of 19% in domestic sales in the first quarter of this year compared to the last quarter of 2021. In the first quarter of the year, sales increased on average 50% compared to the same period of the previous year. It was also revealed that participants expect an average increase of 12% in domestic sales in the second quarter of 2022. Members also announced that they expect an average increase of 43% in domestic sales in the second quarter this year compared to the same period last year. Collection processes were also addressed in the study. A majority of respondents, such as 70%, said there were no changes in collection processes in the first quarter of this year compared to the last quarter of last year. It was observed that this situation was the result of an established collection policy in the sector.

Employment increased

In the survey, the issue of employment in the sector was also scrutinized. While half of the participants said their employment had increased, the rate of those who answered “no change” was around 44%, the rate of those who answered “decreased” was 6%. More than half of the members, whose employment increased, were made up of producer members. Compared to the same period of the previous year, it was revealed that employment in the sector has increased. In the first quarter of 2021, almost 44% of participants announced an increase in their employment.

Supply problems again at the forefront

Supply problems and exchange rate fluctuations were the main problems faced by the sector during the first quarter of this year. The issue of rising costs was also among the topics that received attention. In this context, almost 86% of participants defined their main problem as “problems of supply” and 70% as “exchange rate/increased exchange rate”. Nearly 69% of members answered this question with “freight and delivery cost problems”, 48% “customs problems”, 36% “cash flow problems”, 23% “loss of business and revenue business”, 9% answered “loss of motivation due to the pandemic” and 6% answered “other”.

Investment plans are multiplying!

The sector’s investment plans were also examined in the survey. In the second quarter of this year, the rate of members planning investments reached 45%. It was observed that there was an increase in the investment plans of producer members compared to the previous period. While nearly 45% of producer members planned investments in the previous survey, this rate rose to 60% in the latest survey. This rate, which was 34% for distributor members, rose to 36% during the last survey.

The three positions that increased the most in operating expenses…

For the first time, respondents were asked to rank the three items that had increased the most in operating expenses over the past year. In this context, it was determined that members experienced an increase in their “fuel – transport”, “staff”, “packaging” and “energy (electricity-natural gas)” expenses. 81% of participants were “fuel – transport”, 64% “personnel”, 62% “packaging”, 62% energy “(electricity-natural gas)”, about 44% “cargo”, and about 44% “cargo” 23 % answered “rent” and almost 19% “financing”. Members were also asked about the rate of change in operating expenses of member companies across all expenses over the past year. A large majority, such as 72%, said there had been a 5% increase.

Find products in the domestic market

“Export-oriented growth, the occupation of production capacities directs producers towards exports, which creates problems of availability of products despite the reduction in commercial potential. OSS President Ali Özçete said, “There is a positive vibe on the production side. Especially the container crisis in China, the production crisis had a positive impact on Turkey. However, it is observed that the concentration of manufacturers on exports poses problems in finding products on the domestic market. Companies in the sector are expecting an increase in their turnover in the second quarter. This is an expectation of an increase above inflation…The sector is more optimistic than in the second quarter due to seasonal normals,” he said.

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