How macro trends and external shocks are reshaping aftermarket competition and services. Insights, strategies, and expert advice for machine manufacturers.
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On September 25, leaders from across the machinery and aftermarket sector joined AEM and MARKT-PILOT for a fireside chat on how macro trends and external shocks are reshaping the competitive landscape. In a discussion led by Al Melhim, Senior Director of Business Intelligence at AEM, and Anurag Garg, Chief Product & Technology Officer at MARKT-PILOT, participants explored the evolution of rivalry, the impact of global disruptions, and how original equipment manufacturers (OEMs) can adapt their pricing, stock, and service strategies to not just survive, but lead.
Both speakers made it clear: aftermarket business is no longer about simply selling parts. “You’re not selling parts, you’re selling outcomes: uptime, reliability, and clear value for money,” Garg emphasized at the outset. The initial equipment sale now represents just 20% of a machine’s long-term revenue potential; the remaining 80% resides in aftermarket parts, services, and relationships.
Al Melhim provided an economist’s “wellness check” on the global equipment sector, outlining how persistent inflation, fluctuating interest rates, fragile supply chains, and ongoing trade tensions create anxiety and uncertainty. He summed up the current environment as “not critical, but far from ideal, stable vitals with chronic concerns.” Melhim pointed out, “I have not yet gone through a situation where we have so many external factors moving in tandem, creating a lot of anxiety and a lot of uncertainty in the market”.
“A nimble and dynamic pricing strategy needs the integration of external market data and operational data. Think about your current digital and data structure, and ensure AI is optimally used.”
Globally, sluggish growth and protectionist policies are producing region-specific challenges. For example, “Europe is facing weak growth and heightened import competition, while Asia deals with ongoing fallout from trade wars,” Melhim remarked. Such dynamics affect every link in the aftermarket value chain, from OEMs and suppliers to end customers.
Demand for repairs and spare parts increases during periods of economic slowdown, bringing more rivals into the aftermarket, from OEM dealers to independents to online sellers. “Competition is intensifying, especially on price and service speed,” Melhim explained.
Digital channels and tools now give buyers real-time pricing data. Garg described it this way: “Today, e-commerce platforms let customers compare prices for the exact same part across dozens of sellers instantly.” The result? Lower switching costs and a surge in rivalry. Price transparency challenges traditional models. Buyers are empowered as never before.
Garg introduced a practical framework for responding to these forces by segmenting strategy into two “lanes”:
OEMs must track signals and act fast (supply chain disruptions, freight costs, shifts in buyer power). The old “calendar-based playbooks just don’t work anymore,” he warned. Strategy and pricing now need to be driven by “almost real-time signals” and automated triggers, not annual reviews.
“If you’re in the uptime lane, invest in regional stocking, multi-sourcing, and event-driven expediting.”
Both speakers stressed that resilience must be embedded and visible to earn a premium. “If you’re in the uptime lane, invest in regional stocking, multi-sourcing, and event-driven expediting,” Garg advised. For less time-critical segments, it’s about credible promise windows and optimizing landed costs.
Resilience can be monetized when it provides tangible value and is supported by robust digital infrastructure. “Your comparative advantage now is how you react; and you react fast,” Melhim said. Digital tools, AI, and data-driven workflows allow manufacturers to link external signals (like FX bands or supply chain delays) to rapid tactical actions.
The rise of AI and electrification is already altering the aftermarket's fundamental economics. “Electric equipment is simpler, fewer moving parts means less maintenance and lower long-term costs,” Melhim observed. AI supports smarter operations, predictive maintenance, and more efficient inventory management.
Ease of entry for tech-led competitors means faster innovation, but also greater pressure on incumbents to modernize. Garg made it clear: “Tech and all these changes in the technology landscape only make that resilience and pricing executable. It’s no longer just theoretical.”
Asked to distill a final takeaway, Melhim urged OEMs to revisit pandemic-era lessons and invest in flexible, data-driven strategies: “A nimble and dynamic pricing strategy needs the integration of external market data and operational data. Think about your current digital and data structure, and ensure AI is optimally used.”
Garg offered this parting guidance: “Two lanes, one playbook, price the promise where downtime hurts, price certainty where it doesn’t, then let triggers keep you honest.”
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