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IndustryNet Blog

Procuring U.S. Auto Parts and Accessories: 5 Things to Know

Posted by IndustryNet on Thursday, June 6, 2019

100000395_KUKA_robot_for_flat_glas_handlingWith tariffs and trade policy changing recently and a potential for future changes, industrial buyers of automotive parts and accessories must remain informed and up to date.

With the proper background knowledge, the process of procuring U.S. auto parts can go more smoothly, keeping your company's production on track.

Impact of Tariffs and Trade

As the tariff war with China continues to escalate, people who require U.S. auto parts and accessories, and those who produce them, have expressed concerns regarding auto tariffs.

The good news is that the Trump administration has indicated that automotive tariffs may be delayed by as long as six months, to the end of the year.

During that period, the administration says it will work on trade negotiations with Japan and the European Union.

That is good news for the industry in the immediate future, since there will not be a tariff impact for now.

At the same time, however, there remains an element of uncertainty. Time will tell where auto tariff negotiations lead and how they affect the industry.

Industry Statistics

To understand the procurement of U.S. automotive parts and accessories, it helps to have some information about the industry as a whole.

According to MNI, compiler and publisher of the industrial data that powers IndustryNet, there are 4,382 companies in the industry of motor vehicle parts and accessories. Together in 2019, they provide 400,791 jobs, an increase of 3.16% over last year. The industry lists sales of $337.75 billion, an increase of 3.61%.

The largest percentage of companies in the industry (40%) are in the Midwest, followed by the South (33%).

Benefits of Buying Locally

Because of the uncertainty surrounding the future of automotive tariffs, especially those recently proposed on Mexico, many industrial buyers will find it smarter to opt for locally produced parts and accessories.

By procuring locally, there are fewer concerns about potential disruptions in the supply chain. Those disruptions could lead to an increase in the cost of parts and accessories.

In the worst-case scenario, supply-chain disruptions could lead to a lack of materials, resulting in a standstill in terms of operations.

Downtime of that sort will be incredibly costly for an industrial buyer that relies on the automotive parts and accessories, even if the downtime is short.

It is best that a company minimize the risk of that type of disruption by buying locally.factory_floor-min

Buying automotive parts and accessories locally has the added advantage of reducing costs associated with logistics and shipping.

Reducing the distance the items must travel automatically reduces the cost of shipping. It also minimizes the need for logistic assistance, or the complexity of that assistance, since there will likely be fewer means of transportation used.

And, local purchasing can provide the opportunity to have face-to-face interactions with the supplier.

That is an excellent time to check the quality of parts and accessories and see how the facilities are run.

In addition, procuring U.S. auto parts and accessories can enhance the image of a company and its credibility. Customers appreciate companies that shop at home, because it boosts the local economy.

They will show their appreciation by selecting companies that buy locally over those that import products and other materials from abroad. That preference can directly lead to an increase in sales to people with a buy-America attitude.

Considerations and Precautions for Buyers when Purchasing Automotive Parts

Before purchasing automotive parts or any other product, buyers should take proper precautions, with a focus on evaluating the supplier. When searching for one, buyers will want to consider the reliability of the parts it offers, its prices, stability, whether it is local and its overall reputation.

Buyers must also pay attention to the parts themselves, confirming that they are of high-quality and compatible with the vehicles the buyer works with.

Examples of Reliable Suppliers of U.S. Auto Parts and Accessories

There are numerous reliable suppliers in the United States offering automotive parts and accessories. To provide a head start on the process of finding one, consider the following reliable suppliers:

American Auto II, Inc. is located in Mays Landing, NJ and specializes in late-model domestic and foreign parts and accessories. It has been in business since 1945.

Prince Metal Stampings USA, Inc. is in Gadsen, AL. It specializes in automotive metal stampings and assemblies, and is part of the Narmco Group, which was founded in 1945.

Metro Moulded Parts, Inc., Minneapolis, MN, prides itself on offering a single source for a range of custom molded high-quality rubber products, including for automotive applications.

The company has been in business since 1918.

BorgWarner Emission Systems, Inc., in Water Valley, MS, is a technology leader for highly engineered components and power train application systems. A forerunner of the company was founded in 1880, with others following in 1901 and 1902.


Proper procurement of U.S. auto parts and accessories has become even more important with the recent developments regarding tariffs. With a solid base of knowledge, industrial buyers are better-positioned to make informed decisions regarding suppliers.

IndustryNet is a free industrial marketplace, listing 400,000 U.S. manufacturers and suppliers of more than 10,000 products and services. Click here to see a listing of all U.S. auto parts suppliers on IndustryNet. 


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