Jobber News December 2017 by Annex Business Media

FIRST CANADIAN AUTONOMOUS STREET TEST â&#x20AC;¢ THE DISTRACTION OF NEW TECHNOLOGY

Jobber News Serving the th Automotive Aftermarket Afftermarket k Since 1931 1931

MARKET FACTS CANADIAN MARKET INFO FROM J.D. POWER & ASSOCIATES

PLUS DECEMBER 2017

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Coming January 2018

Jobber News

contents | december 2017 Âť vol. 85 no. 10

Serving the Automotive Aftermarket Since 1931

news

Distracting technology

Drivers are looking at as many as 50 buttons when behind the wheel, from controlling the radio to being able to access social media. The distraction is dangerous, says the AAA.

INDUSTRY WEEK IN LAS VEGAS Upwards of 160,000 people were expected to descend upon Las Vegas for Automotive Aftermarket Industry Week. The focus at both AAPEX and SEMA was technology as companies showed off their latest and sessions provided insight on what jobbers and service technicians need to do to prepare.

J.D. POWER & ASSOCIATES |

Canadian Market Facts Total Canadian market.............................................. 13

NAFTA tensions

Leaders of Canada, Mexico and the United States started to show some signs of patience wearing thin during negotiations to modernize the North American Free Trade Agreement. A deal before the end of the year seems unlikely.

in this issue

Street test

Canada saw its first on-street autonomous vehicle test as the car made its way along a closed-off road in Ottawa.

Push for free trade

With uncertainty around free trade, the MEMA came together with the Europe-based CLEPA to push for open borders and harmonized standards to keep parts manufacturing globally competitive.

Average repair bill . . . . . ................................................. 14 Lube, oil and filter. . . . . . ................................................. 17 Transmission service ................................................. 18

columns

Brake service . . . . . . . . . . . . . . ................................................. 19

Suspension alignment service................................. 21 Tire replacement. . . . . . . . ................................................. 22

Battery replacement. ................................................. 25

Leading off Your car will look like your smartphone

31 New products The latest offerings

Engine/fuel system service...................................... 26

34 Social Media 101

Electrical work. . . . . . . . . . . . ................................................. 27

A survey of social media polls

Audio/entertainment repair..................................... 28

36 Money & Management

Heating, ventilation and air conditioning ............. 29

Thereâ&#x20AC;&#x2122;s money to be found in your business

38 Business Management 38

Pricing correctly for profit

Cover image: cosmin4000

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LONG-TERM PERFORMANCE FOR THEM. LONG-TERM CUSTOMERS FOR YOU. PARTS THAT WORK FOR YOU. Ford and Motorcraft® Parts will keep your customers coming back for more. They’re backed by our 2-year, unlimited distance warranty*, which includes covering labour reimbursement. Plus, our gas engines and transmissions are backed by an unlimited distance and labour warranty for up to 3 years^. Warranty-backed parts and long-term performance. That’s what we call a winning combination.

Learn more at ford.ca/wholesale.

FORD PARTS

WARRANTY^

DISTANCE INCLUDES LABOUR

*24-month/unlimited-km limited warranty applies to most car and light truck Genuine Ford/Motorcraft® Parts and Ford Genuine Accessories, purchased from Ford or Ford Lincoln dealers that are found to be defective in material or workmanship. Parts and labour (up to a maximum of $150) covered for wholesale parts/accessories. Part and/or accessory failure due to: abuse, misuse, neglect, alteration, accident, racing; improper lubrication, repair, or installation; use in applications for which they were either not designed, or functionally intended, or not approved by Ford Motor Company of Canada, Limited; cleaning, adjustment or replacement as a part of normal maintenance; or failures caused by non-Ford parts, are not covered under this warranty. See your local Ford Store for complete coverage details and limitations. ^36-month/unlimited-km limited warranty on New and Remanufactured Gas Engine Assemblies (6006, 6V012, SLGB, LGB) and Transmission Assemblies (7000, 7V000, 7002, 7003,TRM), purchased from Ford or Ford Lincoln dealers, that are found to be defective in material or workmanship. Parts and labour (up to a maximum of $150) covered for ‘over-the-counter’ parts/accessories; labour is covered for engines/transmission assemblies (max. of $150 does not apply). The warranty does not cover parts or accessories that fail due to abuse, misuse, neglect, alteration, accident or racing or which have been improperly lubricated or repaired, improperly installed, or used in applications for which they were either not designed, or functionally intended, or not approved by Ford Motor Company of Canada, Limited, or are cleaned, adjusted or replaced as a part of normal maintenance or failures caused by non-Ford parts. In the Province of Quebec, none of the following limitations and exclusions will exclude or restrict the warranty provided for in sections 37 and 38 of the Quebec Consumer Protection Act. To the extent allowed by law, loss of time, inconvenience, loss of use of the vehicle, commercial loss, or special or consequential damages are not covered. There is no other express warranty, agreement or representation on Ford supplied replacement parts and accessories. Any implied warranty or condition as to merchantability or ﬁtness is limited to the duration of the written warranty. See your local Ford Store for complete coverage details and limitations. Motorcraft® is a registered trademark of Ford Motor Company. ©2017 Ford Motor Company of Canada, Limited. All rights reserved.

Jobber News

leading off |

with adam malik, editor » adam@newcom.ca

FOUNDED 1931

Jobber News is Canada’s longest-established publication serving the distribution segment of the Canadian automotive aftermarket. It is specifically directed to warehouse distributors, wholesalers, machine shops, and national accounts. Editor | Adam Malik (416) 510-6763 E-Mail: adam@newcom.ca Contributing Editor | Martha Uniacke Breen E-Mail: mubreen@sympatico.ca Contributing Writers | Mark Borkowski, Bob Greenwood Art Director | Barbara Burrows Managing Director, Auto Div. & National Sales Kathryn Swan (416) 510-5221 E-Mail: kathryn@newcom.ca National Sales | Juan Diez (416) 510-5203 E-Mail: juan@newcom.ca Quebec & Eastern Canada Sales Director Denis Arsenault, (514) 947-7228 E-Mail: denis@newcom.ca Advertising Production Manager, Print/Digital Alicia Lerma (416) 442-5600 ext. 3588 E-Mail: alicia@newcom.ca Print Production Manager | Phyllis Wright (416) 510-6786 Circulation Manager | Lilianna Kantor (416) 614-5815 E-Mail: lily@newcom.ca

Jobber News is published by Newcom Business Media Inc. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior consent. Canada Post Canadian Publications Mail Sales Product Agreement No. 40063170 “Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., Jobber News, 80 Valleybrook Drive, Toronto, ON M3B 2S9 Jobber News Magazine (ISSN#0021-7050) is published monthly by Newcom Business Media Inc., 80 Valleybrook Drive, Toronto, ON M3B 2S9 From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us.

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JOBBER NEWS / DECEMBER 2017 |

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YOUR CAR WILL SOON LOOK MORE LIKE YOUR SMARTPHONE he theme at this year’s Automotive Aftermarket Products Expo was pretty clear: if you’re not on the technology curve, you might as well close up your business. OK, that’s a bit harsh. But it’s not too far from the truth either. The industry is changing and the aftermarket needs to understand its future customer in order to thrive. Over the event’s three main days, keynotes highlighted the impact of technology that will be hitting the aftermarket. Countless sessions focused on how technology would play a role in helping jobbers do business better, how it would These impact the way we see vehicles in the future and how we companies can all prepare to tackle it full on. Even for service and repair are not shops, the need to be on top of technology will be essential in not just the viability of the shop, but in attracting tech-savvy focused on technicians. the business So it’s one thing to make sure your own jobber store is ready of making to attract the future buyer, but another to make sure your shop your typical customers are doing what they can – and should – to ensure automotive they’re prepared for the future. parts anymore Everyone is in this together. From suppliers to jobbers to – they’re technicians, everyone is facing challenges to prepare for a creating future that isn’t quite well defined. You can see the transformation taking place. The most technology for the future of profound change looks to be coming from the top. It’s transportation. interesting to see how automotive parts manufacturers are morphing into technology companies. Walking around the many booths at AAPEX during Automotive Aftermarket Industry Week, it was clear that many of these companies are digging deep as they develop new strategies for the future. These companies are not focused on the business of making your typical automotive parts anymore – they’re creating technology for the future of transportation. This future, as murky as it may seem, is calling for advancements in sensors, software, safety systems and so on. So what, you may think. Car parts are still car parts. They’re just making different ones. Why get so fancy with all this techno-blabber? That’s because the future vehicle isn’t going be the same as ones we’re used to. It’s not going to be a motorized steel or aluminum hub. It’s going to become a technological device. We’re going to be moving around in a bigger version of what’s in your pocket, the experts predict. We’re going to get from place to place by way of a giant smartphone with wheels. When we start to think of the future vehicle that way, we can start to imagine what it may look like on the inside. Snapchat and Instagram, for instance, owe their existence to the smartphone. These apps are worth tens of billions of dollars and wouldn’t exist without their vehicle. What will the smartphone-on-wheels offer? And what will the aftermarket need to be able to do in order to meet the needs and demands of the public? My crystal ball is undergoing some repairs, but even it may not be able to give a proper answer. To say we know exactly how things will play out is a fool’s errand. The best thing the industry can do is listen to the customers. They will dictate what they want, how they want it and when they want it. It’ll be up to the aftermarket to respond accordingly. JN

www.autoserviceworld.com

over the counter |

▲

A video still of a demonstration of BlackBerry’s QNX operating system

FIRST AUTONOMOUS STREET TEST IN CANADA HITS ROAD The first on-street test of an autonomous vehicle in Canada recently hit the streets in suburban Ottawa. The vehicle was equipped with a BlackBerry QNX system. In the grey Lincoln MKZ was Ottawa Mayor Jim Watson, councillor Marianne Wilkinson and John Wall, general manager of BlackBerry QNX. “Today is the first public fruits of what we’ve been doing,” Wall said. BlackBerry QNX opened an

DORMAN PRODUCTS ACQUIRES MAS INDUSTRIES

UNI-SELECT PICKS SUPPLIER WINNERS Canadian suppliers were recognized by Uni-Select. The Quebec-based group gathered in Toronto recently for a ceremony to hand out the hardware to celebrate its suppliers and to show appreciation. The most prestigious prize, the Diamond Award, went to Brake Parts Inc. This prize is in recognition of the quality of sales tools, fill rate, lead time, inventory management, service and manpower support. The Golden Ally is made of three prizes in sales and marketing. The award for recognizing Sales Tools for Independent Jobbers and Installers went to Tenneco. Mevotech was recognized for Marketing Campaign of the Year. Dorman took home the prize for the third category, Training and Technical Support. The Tech-Savvy Award – New Technology went to Gates Canada. The Achiever Award went to three suppliers whose sales growth performances were the highest among all of Uni-Select’s suppliers in their respective categories – Total (automotive parts category), PPG Canada (paint and body equipment) and JET Equipment & Tools (tools and equipment) ■ JN

autonomous vehicle innovation centre in Ottawa late last year. The test took place on a closed-off street, but it’s expected that it will soon be running alongside real traffic and pedestrians in the near future. Traffic lights in the test area were upgraded to be equipped with transmitters to communicate with the car, as well as repainted street lines and new LED street lights. ■ JN

Montreal-based MAS Industries has been acquired by Dorman Products. MAS designs, engineers and produces chassis, steering, suspension and alignment components for the automotive aftermarket throughout the U.S., Canada and Mexico. The company is expecting net sales of $40 million in 2017. The deal closed Oct. 27. “The acquisition of MAS reflects Dorman’s commitment to aftermarket leadership in the chassis and suspension categories. I am excited for the future opportunities presented by this new partnership as Dorman will now offer customers the most comprehensive chassis offering in today’s aftermarket,” said Matt Barton, Dorman’s president and chief executive officer. He added that MAS’s offerings of chassis and control arms will complement Dorman’s our product line. ■ JN

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

TECHNOLOGY IS DISTRACTING DRIVERS

TECHNICIAN SENTENCED TO JAIL

their dashboards, primarily by way of infotainment systems, drivers are being becoming increasingly distracted, says an AAA study. An “explosion of technology” has taken things from bad to worse, says University of Utah professor David Strayer. He’s been examining issues related to infotainment and safety since 2013 for the AAA’s Foundation for Traffic Safety. Between the steering wheel and dashboard, drivers have access to as many as 50 buttons in front of them, allowing access to social media, texting and e-mail through touch screens, voice commands, heads-up displays and more. “It’s adding more and more layers of complexity and information at drivers’ fingertips without often considering whether it’s a good idea to put it at their fingertips,” Strayer said. Wade Newton, a spokesman for the Alliance of Automobile Manufacturers, told The Associated Press that these systems are not much different than traditional knobs in previous models of cars. These “are designed to be used in the driving environment and require driver attention that is comparable to tuning the radio or adjusting climate controls, which have always been considered baseline acceptable behaviours while driving,” he said. The AAA tested drivers on all 30 of the 2017 model year cars and light trucks. It found that drivers took their eyes off the road and hands off the wheel to use infotainment systems. The group said drivers should use infotainment technologies “only for legitimate emergencies or urgent, driving-related purposes.” It also urged automakers to block drivers from inputting information to navigation systems or send texts while driving. The AAA said the use of infotainment systems should not require any more attention than listening to the radio. ■ JN

AKEBONO WINS IMPORT AWARD The Akebono brake pad line has won the Best Overall Import Aftermarket Product or Product Line Award. It’s the third year the company has taken home the award, handed out by the Import Vehicle Community, a segment of the Auto Care Association. Akebono accepted the award while at AAPEX 2017 in Las Vegas. “We are gratified to receive this award for our EURO brake pads for the third time,” said Ken Selinger, director of aftermarket sales and marketing at Akebono Brake Corporation. “The win is a confirmation of the effectiveness of Akebono Ceramic Technology and of our best-in-class performance and control of noise, vibration and harshness for European applications.” The Import Product and Marketing Awards recognize innovative products and marketing programs designed to serve the import aftermarket. Winners are selected based on superiority in areas of commercial success, quality of reputation, market demand, distribution, presentation and

An Ontario technician was sentenced to jail for issuing a fraudulent safety certificate to a vehicle that ended up in a fatal collision in 2012. Joe Ramono was handed five months in jail, followed by two years of probation and 48 hours of community service in Ontario Superior court following a fourweek trial. He certified that a 1995 Dodge Ram pickup was safe despite never seeing the vehicle. The truck had a corroded brake line, a steering system with excessive free play and rusted and rotted holes. Abigail MacNaughton, 27, died when her car was hit by the Ram on a country road near Peterborough, Ont.

For

more From left, Kirby Pruitt, Chantel Gifford, Jeff Lyvers, Wilm Uhlenbecker (Akebono president and CEO), Donna Mudd, Amanda Konja

packaging, and highest profit potential for the distribution chain. The Euro line is designed for European vehicles. ■ JN

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

over the counter

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check out

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As more cars get more technology crammed into

over the counter |

Schaeffler creates separate aftermarket group

The company announced that its board decided to separate the automotive aftermarket from its automotive division, creating the new stand-alone group. The move is effective January 1, 2018.

NAFTA TENSIONS PUT ON FULL DISPLAY

As a result, Schaeffler will have three divisions – automotive aftermarket, automotive OEM and industrial.

Negotiations to modernize free trade on the continent haven’t

Michael Söding, pictured above, has been appointed to the company’s board of managing directors, effective the same date, and will oversee the aftermarket at the board level. He has been head of the aftermarket business under the automotive arm since 2009. The new division will be managed out of Langen, Germany, a suburb of Frankfurt. “In the last years, Michael Söding has contributed significantly to successfully develop our automotive aftermarket business. With his experience and know-how across technological, operational and strategic issues he will enrich the executive board,” said Georg F. W. Schaeffler, chairman of the supervisory board at Schaeffler. ■ JN

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gone as well as some had hoped. When leaders of Canada, Mexico and the United States were together in late October, tensions erupted and it seemed all the niceties had virtually evaporated following the fourth round of talks around the North American Free Trade Agreement. They all seemed to agree on one thing, however: a solution won’t be reached by the end of the year, pushing the deadline into 2018. One of the pillars of dispute is the automotive industry. The U.S. is making demands that both Canada and Mexico view as non-starters. For example, the Americans want to institute, essentially, a “Made in America” provision where 85 per cent of vehicle contents are from North America, with 50 per cent of it coming from the States. Currently, 62.5 per cent of vehicle content has to come from the NAFTA region with no specific amount from a particular country. On top of that, car makers would have one year to comply with the “Made in America” provision and two years for the overall North American requirement. The phase-in period is deemed to be so outrageous that some wonder if it’s meant to be a way to sabotage talks. “It just doesn’t make sense from a business perspective,” Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, told The Canadian Press. Further, the States are also demanding a five-year sunset clause – a provision that could terminate the deal unless all parties agree to extend it. This worries many as long-term deals may be impossible to sign if there is uncertainty ahead. “Frankly I am surprised and disappointed by the resistance to change from our negotiating partners,” U.S. Trade Representative Robert Lighthizer said at a news conference with Canadian and Mexican representatives following the fourth round of talks. “We have seen no indication that our partners are willing to make any changes that will result in a rebalancing.” “Vice-President Mike Pence (said this summer) that he believed a win-win-win outcome would be achieved in these negotiations. Canada believes that too,” said Canadian Foreign Affairs Minister Chrystia Freeland. “But that cannot be achieved with a winner-take-all mindset or an approach that seeks to undermine NAFTA rather than modernize it.” Freeland slammed some of the requests being made. “We have seen proposals that would turn back the clock on 23 years of predictability, openness and collaboration under NAFTA. In some cases these proposals run counter to WTO rules,” she said. This is troubling.” The next round of talks were scheduled for Nov. 17. ■ JN www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

Photo: NiroDesign, iStockphoto.com

A new automotive aftermarket division has been created within Schaeffler.

PARTS SUPPLIERS PUSH FOR FREE TRADE A pair of major supplier associations have come

together to put their support behind free trade and harmonized standards. The call from the U.S.-based Motor & Equipment Manufacturers Association (MEMA) and the European Association of Automotive Suppliers (CLEPA) comes amid talks of protectionism and threats to free trade agreements. The Free trade, access to raw international and finished materials and motor vehicle harmonized safety and parts supplier environmental standards industry is are essential for vehicle leading the way parts manufacturers in technological to remain globally advances that competitive, the groups will enable safer, said in a joint statement. smarter, and “Illegal regional or more efficient national subsidies on goods vehicles. or production, restrictive – MEMA PRESIDENT non-tariff barriers to trade AND CHIEF EXECUTIVE (including testing and OFFICER STEVE marking requirements), HANDSCHUH and lack of participation in the world market limits both the domestic and global competitiveness of all suppliers,” the said. The groups want trade policies that address trade distortions and support open markets in addition to maintaining and improving existing trade agreements. The two also want to see a mutual recognition between the U.S. and the European Union for vehicle safety and emissions regulations, and to work within the framework of the United Nations’ World Forum for Harmonization of Vehicle Regulations (WP.29) to set up safety and environmental global technical regulations. Having harmonized standards in place will help reduce costs and promote technological advancement, the groups said.

“

”

“The international motor vehicle parts supplier industry is leading the way in technological advances that will enable safer, smarter, and more efficient vehicles,” said MEMA president and chief executive officer Steve Handschuh. “We are at the cusp of the biggest technological changes in 100 years. It is critical that free and open trade facilitates our ability to innovate and compete in the global marketplace.” With parts crossing borders over and over again, “Automotive suppliers need easy and fair access to foreign markets to evolve competitively, underpinning growth and employment around the world,” said CLEPA secretary general Sigrid de Vries. ■ JN IN MEMORIAM

ROBERT BLANS, 73 The Jobber News family mourned the passing of longtime editor Bob Blans. He passed away on Feb. 12, 2017 at the age of 73. He served as editor of Jobber News for about 20 years and was named editor emeritus upon his departure. Blans was a member of aftermarket associations during his tenure and was proud of his work within the industry. The family has asked that donations, in lieu of flowers, be made to the Ian Anderson House Hospice in Oakville.

DON SKUCE, 68 The family of Don Skuce sadly announced his passing at the age of 68 on Oct. 23, 2017. Skuce was the former head of Modern Sales Co-op, headquartered in Barrie, Ont., where he spent 25 years with the company. He served as president for 22 years and general manager for three, leading members from coast to coast. In his memory, donations can be made to the Barrie Minor Hockey Association, the RVH Foundation or the Heart and Stroke Foundation.

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show report | AAPEX & SEMA

Industry Week WRAPS UP ANOTHER YEAR

he Automotive Aftermarket Industry Week came and went with another busy season. At the Sands Expo in Las Vegas, the Automotive Aftermarket Parts Expo (AAPEX) was held Nov. 1-3. Down the street, the the Specialty Equipment Market Association Show was held at the Las Vegas Convention Center and ran for an extra day. Huge crowds gathered at both events – upwards of 160,000 people were expected – as visitors went booth to booth to talk business and see the what companies had to offer the aftermarket. Some suppliers held press conferences to showcase their latest products and map out their direction as the industry changes. Technology was all the rage throughout the event. Not only did many companies show how they are preparing for the electric car, autonomous technology and the like, but session after session at AAPEX highlighted the various challenges and opportunities ahead as the technological revolution deepens its roots within the industry. Keynote sessions were held each day that specifically went over how change will hit the aftermarket and how businesses need to prepare. 10

Bill Long, president and chief operating officer of the Automotive Aftermarket Suppliers Association, and Bill Hanvey, president and chief executive officer of the Auto Care Association, kicked off the expo ahead of the first keynote by welcoming attendees to the event. Their message hammered home the importance of technology in the auto industry and how the aftermarket will need to adapt, ranging from e-tailing to telematics to service provider needs. The pair also pushed attendees to speak to government officials about ownership of vehicle data. While the ACA and AASA are doing their part, business owners carry strong voices, they said, also asking aftermarket members to attend summits and get engaged on the political side to ensure the industry has access to telematic information. Then it was time for the first keynote of the week. Neil Ganguli gave a talk entitled, The Future of the Vehicle: The Future of Mobility and the Aftermarket. His presentation took a look at what is likely ahead as technology expands its reach deeper into our everyday lives, including the automobile. “The question is when, not if,” he said

(Photos from left) John Kinsella of FitForCommerce delivered a keynote session on the future of the parts-buying customer. Gary O’Connor spoke at his surprise retirement send-off the day before AAPEX got under way. AIA Canada Night was another success as attendees packed the room at Caesars Palace for the annual event.

of the technological revolution in the aftermarket. He warned companies that feel established enough in the industry to withstand any obstacles that they will be challenged by newcomers – specifically technology companies that have a history of disruption in other sectors. He encouraged industry pros to think about what they do now and what they will need to do in the future. For example, companies are going to need talented people. Chances are, you’ll need to go out and find them, Ganguli said. The next day, John Kinsella, vice president at e-commerce and consultancy agency FitForCommerce, gave a peek at what the buyer of the future wants when it comes to shopping for car parts. He pushed what he called an omnichannel

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

BY ADAM MALIK

www.vdo.com/usa

They’re not just OEM quality... they’re OEM parts! approach. This involves understanding customers, listening to them, learning what they want and adapting. The point is to be adaptive to customer needs so that they are more loyal to you. A jobber’s competition isn’t just the other store down the street, it’s “anyone offering a better experience than you,” Kinsella said. He encouraged participants to look at what makes Amazon or Williams-Sonoma, for example, so popular. The auto industry is third in e-commerce sales, Kinsella noted, behind apparel and computers. That means plenty of opportunities for the aftermarket to capture dollars. But if the experience online is a painful one, stores will lose business because there are easier options out there, he warned. The third keynote focused on the service and repair side of the industry as a panel led by moderator Scott Shriber of Counterman Magazine discussed how shops need to be committed to technology in order to attract talented technicians. They also said that technical skill can be taught, but finding someone with the right attitude and drive should be at the forefront of hiring decisions.

Farewell to Gary O’Connor Executives in the Canadian automotive aftermarket gathered on Oct. 30 to bid Uni-Select’s Gary O’Connor a happy retirement. A surprise send-off was held at The Venetian hotel in Las Vegas, in advance of AAPEX. Brent Windom, president and chief operating officer of Uni-Select, hosted the send-off party for O’Connor, who called the recognition “a very humbling moment.” O’Connor started his career in the automotive industry in 1983 and has held posts at Dana, Affinia and, most recently, Uni-Select. Canada Night The week wouldn’t be complete without the biggest event of the year for Canadian aftermarket professionals. The Automotive Industries Association of Canada held their annual Canada Night celebration on Oct. 31. About 1,200 people registered for the event at Caesars Palace, which has been held annually since 1971. The gathering is the largest for Canadians, giving attendees the opportunity to network and meet with others within the aftermarket. JN

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

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cover feature | J.D. Power overall market facts 2018

Illustration: ilyast, iStockphoto.com

20 1 8 MARKET FACTS

We at Jobber News are proud to once again bring you the annual Market Facts Guide from J.D. Power & Associates. This guide allows us to provide unique data on market share, vehicle information and numerous service categories. Broken down by region, this data allows Canadian aftermarket professionals to analyze trends in the market and plan accordingly for the year ahead, and beyond. Refer to this guide on a regular basis to ensure that your business is tracking the right path forward.

Mean Kilometres on vehicles by customerâ&#x20AC;&#x2122;s visited facility The total number of kilometres driven is a strong indicator of what types of services a vehicle may need, along with the average kilometres driven. This year, the numbers look good for the aftermarket. Across the industry, the average reading on the odometer is almost 113,000 km, up just over 1 per cent from 2016. Each category saw higher numbers except independent repair shops. For the second year in a row, the average kilometre reading fell in this area. Quick lube facilities now lead the way in average vehicle kilometres seen at 128,541 km. The biggest gains were from branded aftermarket shops where the average odometer read about 2.6 per cent higher than last year at 125,330 km. JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

30,000 60,000 90,000 120,000 150,000 Dealerships

2017: 102,948

2016: 100,355

Branded Aftermarket

2017: 125,330

2016: 123,001

Quick Lube

2017: 129,638

2016: 126,603

Independent Repair Shops

2017: 128,541

2016: 129,664

INDUSTRY AVERAGE

2017: 112,976

2016: 111,621

cover feature | market facts

Share of service occasions performed by vehicle age (%) As a whole, dealerships continued their downward trend in 2017, though only slightly to 44 per cent. That amount of movement was similar throughout the branded aftermarket, but in the opposite direction. It dropped in its share of vehicles four-to-seven-years-old. Quick lubes stayed essentially even throughout, but independents saw a big drop in comparison in both the four to seven and eight to 12 age categories, dropping to 19.4 per cent overall. Other establishments, though, picked up the slack. It grew in both categories, continuing its trend from last year, up 2.3 percentage points overall from 2016 to 9.3 per cent overall.

4-7 yrs. 2017 2016

8-12 yrs. 2017 2016

industry avg. 2017 2016

Total car dealers

53.0

53.1

34.3

35.5

44.0

44.4

Total branded aftermarket

14.5

15.6

20.6

20.7

17.5

18.1

Total quick lubes

8.9

8.8

11.1

10.8

9.9

9.8

Total independents

15.5

16.4

23.4

25.0

19.4

20.7

All other establishments

8.2

6.1

10.5

7.9

9.3

7.0

Type of service performed by vehicle age

4-7 yrs. 2017 2016

8-12 yrs. 2017 2016

industry avg. 2017 2016

LOF

28.3

42.3

52.5

40.2

39.9

41.2

Other scheduled maintenance

45.3

4.6

25.1

3.9

35.6

4.2

Brakes

5.1

7.8

3.0

8.6

4.1

8.2

Engine/fuel system

8.6

2.9

6.4

4.0

7.6

3.5

Alignment

4.1

3.3

4.4

3.7

4.3

Tires

5.6

21.1

3.6

20.8

4.7

21.0

Other services

21.9

17.0

12.7

18.2

17.5

17.6

Lube, oil and filter service is no longer the most frequent service in younger cars, a perhaps stunning development as it used to be on top. The fallout of shorter intervals is the likely cause in vehicles aged between four and seven years as service dropped to 28.3 per cent from 42.3 per cent in 2016. Skyrocketing is other scheduled maintenance, going from just 4.6 per cent last year to almost half of all services performed at 45.3 per cent. In older vehicles, lube oil and filter jumped to 52.5 per cent, with other scheduled maintenance also taking a big leap to about 25 per cent. Tire service, perhaps surprisingly, dropped significantly to less than 5 per cent of performed service.

Average repair/service bill: customer paid ($) by vehicle age The average repair bill saw a jump across the industry to $272, up 5 per cent from 2016. Quick lubes were the only service providers to see an overall drop, falling more than 41 per cent in 2017. Dealerships saw increases in both age categories, up 7 per cent on average to $304 this year. Branded aftermarket dropped in the age eight to 12 category to $249, but rose in four to seven by $10. Individual repair shops dropped a few bucks in newer cars, but jumped to $290 for older vehicles.

4-7 yrs. 2017 2016

8-12 yrs. 2017 2016

Industry avg. 2017 2016

Dealerships

269

253

359

331

304

284

Branded aftermarket

248

238

249

278

248

261

Quick lubes

106

168

112

203

110

187

Individual repair shops

242

245

290

263

272

256

Industry average

247

238

298

281

272

259

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

Most recent customer paid repair/service bill

2017 |

304

2017 |

Dealerships

2016 |

284

248

2017 |

Branded Aftermarket

2016 |

261

110

2017 |

Quick Lubes

2016 |

272

2017 |

272

Independent Repair Shops

187

2016 |

256

Industry Average

2016 |

259

As a whole, the industry average suggests good things as $272 was spent most recently in 2017, compared to $259 in 2016. But only dealerships and independents saw increases while branded aftermarket and quick lubes fell. Customers paid $20 more at dealerships and $16 more at independents repair shops. At branded aftermarket shops, $13 less was spent and customers spent $77 less at quick lube facilities.

Is your customer experience driving maximum performance and retention?

We can help. Inquire now about a full-set of industry-wide scorecards by visiting: jdpower.com/JobberNews

To gain more detailed information about your brandâ&#x20AC;&#x2122;s speciďŹ c performance, please contact JD Ney directly at JD.Ney@jdpa.com. JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

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cover feature | market facts W |

WEST

CENTRAL

C |

EAST

E |

CANADA

CAN

lube, oil, & filter service Establishment used for LOF work by region 2017

W W

CAN W

CAN

Branded Aftermarket

Dealerships

C E

Quick Lubes

Independent Repair Shops

There has been an ever-soslight shift in the lube, oil and filter business. Dealers still have the largest share at 50 per cent in 2017, building on its increase from last year that put them at 48 per cent. The branded aftermarket stayed steady at 15 per cent, with most of its business coming from the older vehicle age class. Quick lubes were up a point to 14 per cent of the market compared to 2016. Independents, however, dropped from 24 per cent in 2016 to 21 per cent in 2017. Its biggest fall came from the age eight to 12 category, falling to 28 per cent from 32 per cent the previous year.

CAN

Establishment used for LOF work by vehicle age 2017

60 50 40 30 20 10 61

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for LOF work by vehicle age 2016 4 to 7 years 8 to 12 years Canada

60 50 40 30

Data & Analysis supplied by:

20 10 59 130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

Dealerships

Branded Aftermarket

Quick Lubes

Independent

cover feature | market facts

transmission service Establishment used for transmission work by region 2017

W W

CAN

Quick Lubes

Independent Repair Shops

Dealerships continue to dominate the transmission service category. They stayed steady at holding 68 per cent of the market, the first time they didnâ&#x20AC;&#x2122;t grow in the past seven years. For vehicles aged four to seven years, dealers added five points to their share, but dropped 8 per cent in the older category.

Establishment used for transmission work by vehicle age 2017

80 70 60 50 40 30

Quick lubes stayed the same overall while branded aftermarket dropped a point.

20 10

CAN

Branded Aftermarket C

Dealerships

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for transmission work by vehicle age 2016

A sizeable jump was made by independent shops in the eight-to-12-years-old category going up to 24 per cent, picking up the majority of the drop from dealers. It doesnâ&#x20AC;&#x2122;t quite take it back to 2015 levels of 27 per cent, but regains some of the ground lost in 2016. Independents still hold the highest market share outside of the dealership network.

80 70 60 50 40 30

4 to 7 years

20 10

8 to 12 years 74

16 Canada

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

WEST

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C |

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CAN

brake service Establishment used for brake work by region 2017

W CAN

Dealerships

Branded Aftermarket

In one of the most important service categories throughout this guide, brake service essentially remained steady for all providers. Dealerships continued to win customers by a wide margin, holding a market share of 52 per cent. It dominated the four-to-sevenyears-old category at 63 per cent in 2017 â&#x20AC;&#x201C; same as last year â&#x20AC;&#x201C; and holds a 42 per cent share in the eight to 12 age range. Independent repair shops saw a drop of two points overall, which were picked up by the branded aftermarket and quick lubes, which each rose a single point in 2017. The branded aftermarket was the only area to see gains in the age four to seven category, moving up two points to 15 per cent, seemingly at the expense of independents.

CAN

29 W

Quick Lubes

Independent Repair Shops

Establishment used for brake work by vehicle age 2017

80 70 60 50 40 30 20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for brake work by vehicle age 2016

80 70 60 50 40 Data & Analysis supplied by:

30 20 10

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

Dealerships

Branded Aftermarket

Quick Lubes

Independent

Premium Line. Superior Formulations. Full Coverage. Element3™ Automotive Brake Pads Together, the EHT™ Enhanced Hybrid Technology and PG™ Professional Grade™ superior formulations offer a comprehensive but complete array of premium brake pads. Make Element3™ your choice for industry-leading coverage and braking performance.

Element3™ EHT™ Enhanced Hybrid Technology

Element3™ PG™ Professional Grade™

• The best attributes of ceramic and semi-metallic all in one pad

• Premium semi-metallic or ceramic materials comparable to OE

• Engineered for maximum control in aggressive stopping situations

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• Extreme stopping power and maximum safety

©2017 Brake Parts Inc LLC. All rights reserved. EHT, ELEMENT3, PG, PROFESSIONAL GRADE, RAYBESTOS, THE BEST IN BRAKES and The Raybestos Flying R are among the registered trademarks and trademarks of BPI Holdings International, Inc.

www.raybestos.com

cover feature | market facts

WEST

W |

CENTRAL

C |

EAST

E |

CANADA

CAN

suspension alignment service Establishment used for alignment work by region 2017

W CAN

CAN

Branded Aftermarket

Dealerships 61

CAN

Quick Lubes

Independent Repair Shops

Establishment used for alignment work by vehicle age 2017

80 70 60 50 40 30 20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

The branded aftermarket made some gains and moved into second place in the suspension alignment category. Still, its 20 per cent share is dwarfed by the dealershipâ&#x20AC;&#x2122;s hold of 63 per cent. Independents dropped four points and fell to third in this category. Quick lubes remained a distant fourth with just 2 per cent of market share. In the four to seven age category, dealers got nearly three-quarters of customers, and half of them in the eight to 12 age group. In the older age class, branded aftermarket came in at 27 per cent as independents held 21 per cent overall market share.

Establishment used for alignment work by vehicle age 2016

80 4 to 7 years

70 60

8 to 12 years

Canada

40 30

Data & Analysis supplied by:

20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

cover feature | market facts WEST

W |

CENTRAL

C |

EAST

E |

CANADA

CAN

tire replacement Establishment used for tire replacement by region 2017

W W

CAN

Dealerships E C

Branded Aftermarket

80 70 60 50 40 30 20 33

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent Repair Shops

Quick Lubes

Independent

Establishment used for tire replacement by vehicle age 2017

CAN

A growing category, tire replacement has become big business for the industry. Itâ&#x20AC;&#x2122;s among the most important service categories. All service providers more or less stayed within a two-point change from 2016. Dealerships come out on top again with 44 per cent of the market, up one point from 2016. Thatâ&#x20AC;&#x2122;s a less drastic of a jump from 2015 when it rose five points. The branded aftermarket was up one point overall to 28 per cent thanks to a five-point jump in the older vehicle category to 35 per cent. That helped make up for the two-point drop in the four to seven age category. Independents continued to drop, this time down to 26 per cent in 2017. In 2015, independent repair shops held a 36-per-cent hold before falling to 28 per cent in 2016.

Establishment used for tire replacement by vehicle age 2016

80 4 to 7 years

70 60

8 to 12 years

Canada

40 30

Data & Analysis supplied by:

20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

Establishment used for tire repair by vehicle age 2017

tire repair

70 60

Tire repair saw a bit more of an even playing field in 2017. Dealerships dipped a few points from 45 per cent to 42 per cent. They saw drops in both age categories to sit at 49 per cent in four-to-seven-year-olds and 36 per cent in the older category for 2017. Independents also dropped off a bit, falling three points to 22 per cent this year. The younger age category fell one point, but the eight to 12 age group dropped four points. The gains were found by the branded aftermarket, which saw a six-point jump to 32 per cent in 2017 from 26 per cent in 2016. Both age categories saw boosts with a jump of five points in the four to seven age group and six points in the eight to 12 age group.

50 40 30 20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Perfect match know-how. Close enough isn't good enough. With nearly 500,000 parts, tools and products in stock, we have exactly what you need.

napacanada.com JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

Made in Germany. Made for you.

cover feature | market facts

tire maintenance Establishment used for tire maintenance by vehicle age 2017

80 70 60 50 40 30 20 10

64 40 54

Dealerships

Branded Aftermarket

I use it! "No other products on the market compare to LIQUI MOLY!" Renato Fausch RSP-Motorsports Inc Kilworth-Komoka, Ontario CA

Quick Lubes

Independent

Establishment used for tire maintenance by region 2017 Dealerships

Branded Aftermarket

Quick Lubes

Independent

West Central East Canada

60 56 46 54

25 19 21 21

5 4 2 4

9 22 31 21

Gains by dealers came at the expense of independents in the tire maintenance category. Dealers moved up three points to 54 per cent of market share, buoyed by gains in both age categories. Independents suffered drops in the two age groups and fell four points to 21 per cent overall. The branded aftermarket stayed steady at 21 per cent. They gained in the eight to 12 age group but dropped a point in the younger class. Quick lubes, though, made some gains. It doubled its market share, going up two points to 4 per cent.

#iuseit See the whole success story:

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4 to 7 years 8 to 12 years Canada

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

WEST

W |

CENTRAL

C |

EAST

E |

CANADA

CAN

battery replacement Establishment used for battery replacement work by region 2017

W W

CAN

Branded Aftermarket

Dealerships 45

CAN

Quick Lubes

Independent Repair Shops

E C

Establishment used for battery replacement work by vehicle age 2017

80 70 60 50 40 30 20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for battery replacement work by vehicle age 2016

This is another category in which dealerships hold the lead. They have 51 per cent of market share, though thatâ&#x20AC;&#x2122;s a three-point drop compared to 2016. Their biggest fall came in the eight-to-12-year-old group which saw its share shrink to 40 per cent in 2017 from 46 per cent the previous year. Market share also fell two points in the age four to seven class to 63 per cent. Making gains was the branded aftermarket, up four points in 2017 to 23 per cent market share. They saw a sixpoint boost in the older age group to push it forward. That helped overcome a drop of two points in the four-to-seven-year-old class. The independent shops stayed basically the same, though they did suffer a onepoint drop to 23 per cent overall. Quick lubes were steady at 3 per cent overall.

80 70 60 50 40 30

Data & Analysis supplied by:

20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

cover feature | market facts

engine/fuel system service Establishment used for engine/fuel work by region 2017

W W

CAN

Dealerships E

CAN

6 W

Branded Aftermarket C

Quick Lubes

Independent Repair Shops

Dealerships continue to dominate this category, which may not be a surprise. But itâ&#x20AC;&#x2122;s worth taking note of the continued drop by

Establishment used for engine/fuel work by vehicle age 2017

80 70 60 50 40 30 20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for engine/fuel work by vehicle age 2016

80 70 60

independents. With one-quarter of market share in 2015, independents slipped a bit to 23 per cent in 2016 and fell to 17 per cent in 2017. The number of newer models independents serviced is more or less steady at 12 per cent, compared to 13 in 2016. But the older vehicle category has dropped to 22 per cent of market share for this group. Dealers hold nearly two-thirds of the market at 64 per cent, making gains in both vehicle age categories. Branded aftermarket made gains, moving up four points to 13 per cent in 2017, compared to less than 10 in 2016. A boost to the eight to 12 age group helped here. The engine/fuel system service category is an area that the industry has seen challenges as vehicle technology has increased the difficulty level for technicians if they donâ&#x20AC;&#x2122;t have the same training or tools to perform repairs.

50 40 30 20 10

4 to 7 years 75

8 to 12 years

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Canada

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

WEST

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C |

EAST

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CAN

electrical work Establishment used for electrical work by region 2017

CAN CAN

Branded Aftermarket

Dealerships 60

CAN

There was little movement in the electrical work category. Dealerships maintained their stronghold in this area, owning two-thirds of market share. They did suffer a dip in the eight to 12 age group of vehicles, down five points to 54 per cent, but made up for it in the newer model category, jumping to 84 per cent in 2017, compared to 75 per cent in 2016. Independent shops lost two points of market share to drop to 20 per cent. It lost in the four to seven age category but did make gains with older vehicles, moving to 30 per cent market share. The branded aftermarket was up two points, thanks as well to the older model age group. Overall, they have 12 per cent of the market. Quick lubes held just a single per cent of market share overall in 2017.

Quick Lubes

CAN

Independent Repair Shops

2 E

Establishment used for electrical work by vehicle age 2017

80 70 60 50 40 30 20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for electrical work by vehicle age 2016

80 70 60 50 40 Data & Analysis supplied by:

30 20 10

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

Dealerships

Branded Aftermarket

Quick Lubes

Independent

cover feature | market facts

audio/entertainment system repair Establishment used for audio/entertainment work by region 2017

W CAN

CAN

9 E

Branded Aftermarket

Dealerships C

Quick Lubes

80 70 60 50 40 30 20 78

0 Dealerships

Branded Aftermarket

Independent Repair Shops C E

Establishment used for audio/entertainment work by vehicle age 2017

Quick Lubes

Independent

A category that was heavily dominated by the dealerships in 2016 was slightly less so in 2017. Granted, dealerships still own the lionâ&#x20AC;&#x2122;s share of the audio market with 73 per cent. But thatâ&#x20AC;&#x2122;s a drop of nine points from last year, with falls in both vehicle age groups. The branded aftermarket seemed to pick up the slack, going from just 7 per cent market share to 16 per cent in 2017. They saw gains in both age groups. Independents stayed relatively steady, gaining one point overall to 9 per cent market share. Quick lubes saw a gain in the eight to 12 age group, from 3 per cent to 6 per cent market share in 2017, but still only have a 2 per cent hold on the market.

Establishment used for audio/entertainment work by vehicle age 2016

90 80 70 60 50 40 4 to 7 years

30 20 10

8 to 12 years 88

8 Canada

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

WEST

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CENTRAL

C |

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CAN

heating, ventilation, and a/c Establishment used for HVAC work by region 2017

CAN

Quick Lubes

Independent Repair Shops

Dealerships have fallen back a bit in the HVAC category. After a nine-point jump from 2015 to 2016, they dropped their market share by six points to 60 per cent. The biggest fall came in the older model group, dropping five points. The branded aftermarket returned to and went beyond its 2015 numbers. Now at 15 per cent market share, it grew four points from 11 per cent in 2016, when it dropped from 14 per cent in 2015. Independents gained back some of their losses overall. In 2015, they had 26 per cent market share before falling to 20 per cent in 2016. In 2017, independent shops climbed to 22 per cent overall. Quick lubes were up a point overall to 4 per cent.

CAN

Branded Aftermarket

Dealerships

W CAN

Establishment used for HVAC work by vehicle age 2017

80 70 60 50 40 30 20 10

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for HVAC work by vehicle age 2016

80 70 60 50 40 Data & Analysis supplied by:

30 20 10

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

Dealerships

Branded Aftermarket

Quick Lubes

Independent

new products |

Philips Ultinon LEDs

TTX line expansion Mevotech’s Over-Built chassis line, TTX: Terrain Tough Xtreme, is getting an expansion. The company’s TTX unitized control arms, tie rod ends, and stabilizer links include Mevotech’s newest innovation, the patented locking boot. It provides an optimized factory seal on the integrated ball joints. The Over-Built line features thicker, forged materials and patented ball joint internals. The TTX line offers all joints, OCC stabilizer links, ball in socket stabilizer links, control arms and tie rod ends. Mevotech www.mevotech.com

New Total motor oils Total Canada has introduced new mineral engine oils: Total Quartz 5000 Future XT and Total Quartz 5000 SN. These will replace old versions, the Total Classic SN/GF-5 and SN. Total Quartz 5000 will offer two types of products in various grades: Total Quartz 5000 Future XT 5W-20, 5W-30 and 10W-30; and Total Quartz 5000 SN 10W-40 and 20W-50 The Future XT range will offer a mineral oil formulated with the same fuel economy technology as other Quartz products. Total Canada www.total-canada.ca

Monroe expansion Monroe’s Quick-Strut line has expanded once again. An additional 46 strut assembly part numbers are now available, covering more than 5.3 million vehicles. More than half of the part numbers are the first available for their respective applications from a major ride control manufacturer. So far this year, Tenneco has added 255 part numbers, covering almost 60 million strut replacement opportunities. Some of the applications covered by the include: 2012-2015 Buick Verano 2.4L (front); 2011-2012 Chevrolet Cruze 1.4 & 1.8L (front); 2012 Honda Civic Sedan, Coupe, Coupe DX & LX (front); 2011-2013 Hyundai Elantra Sedan GLS & Limited (front); 2010-2012 Subaru Outback 2.5L (front); and 2012-2014 Toyota Yaris (front). www.monroe.com

Lumileds has introduced Philips Ultinon LED lights, a new and advanced generation of LED lighting options for the automotive aftermarket. The lights are available in four colour options: cool blue, intense red, intense amber, and 6000K bright white. They are designed as direct replacements for conventional bulbs in stop lights, turn signal lights, backup lights, taillights, position lights, hazard lights, trunk lights, glove compartment lights and interior floor lights. The lights include a CANbus adapter for trouble-free installation. Lumileds www.lumileds.com

New Carter part numbers Carter Fuel Systems has introduced 19 new part numbers, covering a series of model year applications ranging from 1998 to 2017. Included are 12 fuel pump module assemblies, three direct injection high pressure fuel pumps, three fuel pump tank lock rings and one fuel tank sender assembly. The new part numbers fit popular domestic models such as the Dodge Ram, Chevrolet Silverado, Chrysler 200 and Buick Allure, coverage that reaches 3.2 million additional passenger vehicles. The introduction of these new numbers expands coverage to fit commonly driven foreign-manufactured models, including the Nissan Cube, Volvo S70, Honda CRV, and Toyota Prius. Carter Fuel Systems www.carterfuelsystems.com

continues on page 32

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

new products |

Liqui Moly oil for Porsche Liqui Moly has released an oil made specifically for Porsche vehicles. Synthoil Energy A40 0W-40 is designed for the type of engine power Porsche vehicles demand from their motor oil. The new product from Liqui Moly is officially approved by Porsche for all vehicles that require an oil with the company’s A40 standard. That means pretty much every Porsche with a gasoline motor. The oil is not meant for use in your typical vehicle, only sports cars. It is a newly developed synthetic motor oil from Liqui Moly. With a 0W-40 rating, its viscosity is greater than many conventional oils. Liqui Moly www.liqui-moly.com

Rancho ‘Level It’ suspension system

MÄXIMUM

POWER Discover this exclusive collection of premium quality tools and equipment, available in select Bumper to Bumper and Auto Parts Plus stores, at

Rancho announced that its ‘Level It’ Suspension System is available for 2004-2008 Ford F-150 trucks. It’s a twoinch suspension system (part no. RS66502R7) to deliver on- and off-road performance benefits while eliminating rake. Included in each suspension kit is a set of Rancho quicklift RS7000 monotube struts. These are engineered specifically for light trucks and sport utility vehicles with a higher centre of gravity. The units feature application-specific valving and a high-pressure nitrogen gas charge and are designed to reduce body roll for increased ride performance and stability. The kits include a set of sway bar drop brackets to ensure optimal engineering angles for roll and sway, improving ride precision. The suspension system is designed to accommodate tires up to 35 inches in size, with minor trimming required, as well as transfer of the stock factory spring and top mount. Rancho www.GoRancho.com

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

Looking for more? Visit www.autoserviceworld.com/products to stay on top of the latest product announcements.

Mahle Original gasket catalogue The 2017 gasket catalogue from Mahle Aftermarket is now available. It covers domestic, European and Asian applications in North America. The Mahle Original catalogue has 6,871 SKUs with 1,314 new part numbers. Plus, another 1,151 part numbers are exclusive to Mahle. More than one million applications are covered by the new catalogue, which represents more than 35 million vehicles in operation in North America. The catalog can be downloaded in PDF format from the company’s website and through an e-catalogue at catalog.mahleaftermarket.com/na. Users can search by product, vehicle make and engine. It’s available in three languages: English, French and Spanish. Mahle Aftermarket www.mahle-aftermarket.com

Walker part number expansion The Walker emissions control line has been expanded to cover an additional 21 million passenger vehicles. Tenneco announced that there are 103 new part numbers for various Walker products, covering direct-fit catalytic converter, premium muffler/muffler assembly, pipe, resonator and hardware part numbers. Included in the new parts are: 27 new direct-fit Walker CalCat catalytic converters that are compliant with the California Air Resources Board; 23 Environmental Protection Agencycompliant direct-fit Walker Wultra converters; and 29 premium, stainlesssteel Walker Quiet-Flow SS mufflers/ muffler assemblies. For a list of vehicles covered by the expansion, visit the products page at autoserviceworld.com. Walker Emissions Control www.walkerexhaust.com

Electric Water Pumps

Water Pumps

Thermostats Thermost Ther mo ats mos most at

Fan Pulley ey y Brack B Brackets rack a ets e

Hydraulics Clutch Clut Clu ch H ydra dra aulics

Hydraulic Be Belt elt l T Tensioners ens ensi n oner o s

Free Wheel Hubs

Manual T Transmissions

Vacuum V Switching V Valves

Power Back Door Actuators

Inverter Water Pumps

Shift Actuators

Oil Pumps

Fan Blades

Fan Clutches

Clutch Kits

Speed ABS Spee A Spe d S Sens Sensors ors rs

Oil Control Valves V

Variable V V Valve alve Timing Gears

Form-In-Place Gaskets

Timing Belt Kits

Ride Height Sensors

Timi Timing in ng C Chain hain Cov Covers vers e

Electronic Throttle Bodies

Automatic Transmission Automati tic T ransmission Fluids

Actuators Door Lock k Ac tuators

Antifreeze Coolant Anti ntiifr nti freeze Co freeze C oolant a (Pink & Blue)

“Constantly Building Upon n Our Own Innovations” www.aisinaftermarket.com ADS#18416

JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

social media 101 |

s a business, you should naturally welcome feedback at every opportunity. Actually, one of the easiest and fastest ways you can generate it is – literally – right at your fingertips. Along with your regular social media activities, try sending out occasional polls now and then. Even though the results may not be as scientific as more elaborate methods of surveying your customer population, social media polls are pure gold for pulling in quick answers while providing other benefits as well. Social media polls can add value to many aspects of your social media marketing – and for that matter, your overall marketing plan. They’re great

for taking the pulse of your followers on new products and services, specific aspects of your business, and even the nature of your social media activities themselves. Soliciting feedback from your followers can help you understand what information is most engaging to them, and can help you fine-tune your posts to keep them interested. Polls are also great for helping you get a handle on who’s reading your social media marketing, especially those who are engaged enough to respond, since answering polls requires some action on their part. The polling feature on major social media platforms automatically tabulates

demographic information, including such basic info as gender, age, occupation and location, all of which you can use in a variety of useful ways. You can quickly ascertain, for example, whether your followers are mostly under 35, come from outside your local area or are primarily independent jobber store owners or auto repair shops. All of this can help you see who’s following you and what engages them most. Social media polls are especially good for quick, straight-from-the-hip info on what followers want from your business, both generally or in precise ways, such as gauging the effectiveness of a particular marketing or sales campaign. Say you’ve

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

Photo: triloks, iStockphotos.com

A SURVEY OF SOCIAL MEDIA POLLS

BY LUCIANA NECHITA, DIRECTOR OF PUBLIC AFFAIRS AT AIA CANADA; MARTHA UNIACKE BREEN, CONTRIBUTING EDITOR OF JOBBER NEWS.

just done a promotion that’s tied in with a particular event, such as your founder’s birthday. Did customers hear about it? Did they take advantage of it? What would they like to see in future promos? You can also ask, in advance of it, what your customers might prefer – would they rather have a 20 per cent discount on batteries or on motor oil? Questions like this not only help increase the success of a given promotion, but demonstrate that your customers’ opinions are important to you. Social media polls don’t always have to be about business subjects just because you have a business account. This is where the power of social media has a way of putting a human face on your business and can be very effective. Remember to be careful and keep things light and in good taste. No matter how casual your poll may be, it still represents your business. Along with regular business polls, you might occasionally send out a lighter query. On Grey Cup weekend, for example, ask followers who they think will win. On Valentine’s Day, ask whether your followers are buying flowers or candy for their sweethearts. Among the major social media platforms, Twitter’s polling feature is perhaps the most popular, simply because its polls are easy to create and even easier to respond to. To create a Twitter poll, click on “Compose Tweet,” then “Add Poll.” A handy template comes up that allows you to pose your question and choose multiple-choice or short written responses. Then specify a time limit to gather responses. Facebook just rolled out a brand-new, updated polling feature last month. As with Instagram Stories, yet another online polling tool, its polls are limited to two answer options. To draw attention to your Facebook polls, you can attach GIFs and photos. You can track vote counts as well as those who cast the votes. With all the major polling tools, you can specify whether to send the poll out right away or at a later time – the first day of a show, for example. Don’t just set it and forget it, though. As with any time-delayed marketing, there’s always a chance the

Social media polls can add value to many aspects of your social media marketing – and for that matter, your overall marketing plan. timing may turn out to be sensitive. Just ask the airline that reserved a full-page newspaper ad in advance, which ran on the same day as a major plane crash. Don’t look to social media polls as a way of gleaning comprehensive and highly accurate marketing data on your audience. For that, you might consider more formal surveys, online services such

as Survey Monkey, or professional market research companies (or tap into AIA’s authoritative data analytics resources). But as a tool for generating quick-andeasy answers to questions, engaging your followers, and adding a bit of fun to your web presence, a social media poll can’t be beat. And the results may, from time to time, even surprise you. JN

GOT AN IDEA OR QUESTION ABOUT SOCIAL MEDIA MARKETING? We’d love to hear from you. Drop us a line at adam@newcom.ca, tweet us @JobberNews, or visit our Facebook page at facebook.com/JobberNews.

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JOBBER NEWS / DECEMBER 2017 |www.autoserviceworld.com

money & management |

THERE’S MONEY TO BE FOUND IN YOUR BUSINESS he challenges of running a business today are daunting. Managing rising raw materials costs, a multigenerational workforce, disruptive technologies and changing consumer expectations put enormous pressure on business owners to protect margins, remain competitive and sustain profitable growth. If you had the opportunity to get the leg up on your competition, wouldn’t you take it? But investing in innovation, expansion or new talent all cost money, which you probably think you don’t have. But what if I told you there’s money to be found – if you look in the right places. Felix Gelt, a principal in the performance improvement practice at Farber Financial Group, believes that most businesses can unleash cash by looking closely at their internal sales, general and administrative (SG&A) expenses. These areas are often overlooked because they’re deemed insignificant, or business owners don’t have the time to examine and address them effectively. However, doing a thorough analysis of SG&A expenses on a regular basis – through an expense reduction analysis (ERA) – can yield anywhere from 5 to 30 percent savings in operating costs. The increase in cash flow can help mid-market organizations address the ongoing squeeze they continually face, where suppliers want to increase their prices, while customers demand lower costs. The added profitability can be used to fund growth opportunities, so it’s well worth the effort. Gelt says there could be up to 100 indirect expenses that a business can incur from operations. Some of the most common ones that businesses can target for savings include insurance, merchant fees, freight, print, telecommunications and internet service, travel and entertainment expense management, and waste management. An ERA examines the largest of these areas and studies your contracts (if applicable) to ensure they provide the best possible services and performance from your vendors. Next, it analyzes your expense reports and invoices to ensure you’re not overspending, under-utilizing resources or experiencing billing errors.

If any of these issues appear, ERA specialists can: quantify your potential savings; renegotiate your contracts; speak with your vendors to fix and reconcile any billing errors; adjust any orders so you’re only spending on the services and products you need to operate your business efficiently; and outline a project plan so you can see exactly where and when your savings will hit your income statement in the months ahead. A key reason businesses have increasing challenges with their SG&A expenses is from a lack of contracts with vendors. Many entrepreneurial organizations rely on a verbal agreement or a handshake, neglecting to get the details of their agreement down on paper and signed by both parties. A contract not only outlines terms and conditions, but it can also be used to document discounts, incentives for paying early and service level agreements, Gelt says. Review your contracts on a regular basis to ensure your vendor is meeting its obligations and the service levels you want. Does your company overspend and waste resources? Have few, if any, contracts with suppliers? Those are just a couple of reasons why an ERA could benefit your business. Whenever you’re buying more than you need, spending more than you have to or not taking advantage of optimized vendor contracts, you’re negatively impacting your cash flow and profitability. And it may be the reason you’ve put off opportunities for growth. JN

Mark Borkowski, Mercantile Mergers & Acquisitions Corp. Mercantile is a mid-market M&A brokerage firm. Contact: www.mercantilemergersacquisitions.com

BY MARK BORKOWSKI

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2017

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