The rules of original equipment manufacturer (OEM) competitiveness are being rewritten. In the face of rapidly changing economic conditions, supply chain disruptions, and heightened customer expectations, manufacturers can no longer rely on production and distribution alone to stay ahead.
Historically overlooked for digital investment, the aftermarket is now gaining significant attention as a critical driver of equipment uptime, recurring revenue, and long-term customer loyalty.
According to Syncron’s State of the Aftermarket 2025 report, this shift is well underway and gathering speed, redefining how OEMs think about growth, resilience, and supply chain leadership. But while investment and expectations are rising, many manufacturers still lack the connected data, systems, and differentiated strategy to fully capitalize on the aftermarket’s potential.
Growth and resilience beyond the point of sale
OEMs are facing mounting pressures, including stagnant new equipment sales, rising input costs, and customers holding onto their assets for longer, all of which makes it harder to drive predictable growth through traditional channels. To offset these pressures, manufacturers are turning to the aftermarket.
According to Syncron’s research, nearly half of OEMs now identify enhancing aftermarket operations as a top strategic priority, with 81% planning to increase aftermarket investment in the next five years. As a result, the contribution of the aftermarket to total revenue is projected to increase significantly, from 10-29% today to 30-49% within the next five years.
This shift is not just about creating new revenue streams; it's about stabilizing the business as a whole through the department that can offer high margins, recurring value, and direct customer impact.
In a market where uncertainty has become the norm, the aftermarket offers a source of reliable, high-margin revenue and scalable growth. And when equipment sales rebound, customers will return to the OEM that delivered the best service experience throughout the lifecycle, not just the one with the lowest upfront price.
The tariff effect on aftermarket supply chains
Tariff changes can drive sudden spikes in the cost of imported parts, threatening margins in the aftermarket more quickly than in new equipment sales. To mitigate these impacts, OEMs are adopting a wide range of supply chain strategies.
According to Syncron’s State of the Aftermarket 2025 report:
- 51% are optimizing inventory and demand planning
- 45% are diversifying their supply chains
- 39% are exploring new business models such as subscriptions or service contracts
- 36% are increasing prices for parts and service
- 35% are using dynamic pricing
- 35% are offering tariff-free alternatives such as remanufactured or refurbished parts
Only 29% report negotiating tariff exemptions, a figure significantly lower among U.S. respondents.
These responses show that while most OEMs are taking steps to protect margins, the focus remains largely on operational levers. For many, this leaves significant value untapped, especially in high-tariff markets where a more proactive strategy could yield greater impact.
Data blind spots are holding back supply chain performance
Effective real-time decision-making within the aftermarket supply chain hinges on accurate data. But according to Syncron’s research, only one in three say their data quality is strong, and while most can track what parts they’ve shipped to dealers, far fewer know what’s actually been sold, or how that demand is changing on the ground.
This gap creates real planning risk. Without visibility into dealer-level sales, OEMs struggle to forecast demand, plan production, or allocate inventory effectively. And because that data often sits outside the OEM’s four walls—owned by dealers, not manufacturers—it introduces a layer of complexity that goes beyond traditional finished goods supply chains. Bridging that gap is essential for optimizing investment, reducing stockouts, and delivering a more responsive aftermarket experience.
According to the report, OEMs face a combination of barriers when it comes to turning data into action: limited investment in integration, large and siloed datasets—especially in global operations—and a shortage of talent or resources to extract meaningful insights.
For many OEMs, the challenge isn’t just collecting data; it’s knowing what to trust, what to act on, and how to connect the dots.
Integration as a differentiator
The most successful OEMs are making substantial investments not only in their aftermarket operations but also integrating these operations with their broader supply chains. OEMs with higher aftermarket maturity, characterized by proactive or autonomous operations, report stronger revenue growth. Integration is what turns individual improvements into broader supply chain performance gains.
But integration comes with its own set of challenges. According to the report, OEMs still face hurdles like data silos across global systems, limited dealer and supplier integration, and manual processes that slow down decision-making. These issues restrict visibility into demand and service operations, making it harder to act quickly and consistently across the network.
Regional realities: The U.S. perspective
U.S.-based OEMs face a unique set of pressures. Economic uncertainty, ongoing trade tensions, and shifting customer expectations are forcing them to re-evaluate how they build stability into their business.
As a result, many are placing aftermarket at the heart of their supply chain strategies, with almost one-third expecting aftermarket to account for half or more of total revenue within five years, compared to just 8% in Germany, Austria, and Switzerland (DACH).
They’re also leading the way in tech adoption. From AI-enabled forecasting to scenario modeling, U.S. manufacturers are increasingly using digital tools to guide supply chain decisions and respond to demand in real time.
Call to action: A supply chain strategy hiding in plain sight
Syncron’s State of the Aftermarket 2025 report reveals a clear shift in priorities: OEMs expect the aftermarket to contribute significantly more revenue over the next five years, but most are still held back by outdated systems, complex data collection, and limited integration.
That gap between expectation and capability is both the challenge and the opportunity.
Aftermarket is coming out of the shadows. It’s a critical part of the supply chain that enables resilience, drives customer loyalty, and creates repeatable revenue in uncertain times.
While all supply chain leaders are under pressure to improve efficiency, manage volatility, and deliver results, aftermarket supply chain leaders must balance those same priorities with added complexity, from long-tail parts and limited demand visibility to dealer-led distribution and rising customer expectations. The role also has an outsized impact on both revenue growth and customer retention, making it one of the most commercially impactful supply chain functions today.
The next generation of supply chain leaders won’t just manage aftermarket—they’ll turn it into a strategic advantage and a catalyst for growth.
