Article at a glance:

Profiting from spare parts

The $400 billion global market in aftermarket parts includes everything from replacement toner cartridges to cruise ship engines. Although many executives take sales of these items for granted, they are an important source of profit for companies that make durable equipment. Now these profits are under attack from low-priced competitors in Asia and from increasingly savvy customers.

The take-away

Despite intense competition and the customer's growing sophistication, manufacturers are still well positioned to defend aftermarket businesses and to improve their overall profitability.