Manufacturing leaders were excited and cautiously optimistic about the aftermarket industry in 2025 after things started to slow down toward the end of 2024.

Addressing the issue of looming tariffs on Canada, China, and Mexico, parts suppliers have been using different strategies to mitigate their effects and ensure minimum disruption to the supply chain.

Grote Industries has been taking action for a while and retooling its supply chain, Dominic Grote, president and CEO, Grote Industries, said during Heavy Duty Dialogue in Grapevine, Texas.

Matt Wolfe, vice-president and general manager, aftermarket, SAF-Holland said his company has actively looked at second and third sources to buy product from in places less impacted by tariffs.

Sometimes the margins cannot be absorbed, he said, and the price increase must be passed along to customers.

Chip Stuhr, president of Stemco, said prices generally go up with tariffs. “You’ve got this balancing act of passing on cost increases and fleets saying they will not take them,” he said.

Agile supply chain

Agility with the supply chain is key so that sourcing strategy is not locked into one region.

SAF-Holland’s focus has been on investing for capacity to be ready for the up-market – for both original equipment and the aftermarket.

Grote said the phase where everyone was chasing low-cost countries for manufacturing has made his company more competitive. Continuing to invest in North American manufacturing has made a difference and improved supply chain agility.

Despite the challenges, the business leaders are pumped about the opportunities that will arise in the commercial aftermarket.

Evolving technology

Grote is pleased with the way the industry is embracing new technology as new products provide growth opportunities.

Stuhr added the trucking industry is about relationships. Technology is going to change, and the key is to be agile with people and technology.

Wolfe sees more opportunities to supply parts to the industry. The manufacturers are paying close attention to what their customers are asking for, including better support.

Customer expectations

Stuhr said Amazon has changed customer expectations on how you order, what you order, when you order and how it is delivered.

“The focus is how do we make it easy to do business with us. However you want to communicate with us, we’ve got to be able to have the right information at the right time when you need it,” he said.

SAF-Holland continues to invest in its people and distribution capacity. Wolfe said that during the pandemic customers bought parts in bulk due to the uncertainty. “Now they’ve leaned out inventory and expect us to have it like Amazon,” he said.

Grote Industries has been looking inward on how to deal with surprises and has been focused on operational excellence. It has leaned out operations and streamlined things.