January/February 2024 Jobber News by Annex Business Media

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CONTENTS

January/February 2024 • Volume 91, No. 1

FEATURES

COLUMNS

COVER FEATURE

Service Notes | 5

Executive Outlook | 16

Our changing habits

Digging into 2024, what can the automotive aftermarket expect going forward? How will changed consumer and industry habits affect the sector? We asked 10 experts for their insights

Op-Ed | 13

Perseverance, commitment, action

Industry Expertise | 24 Navigating the future

DEPARTMENTS

6.................

Letters

7.................. News 12...............

Numbers

23................ On The Road

M&A LANDSCAPE

Heightened activity

There were a few big deals swung in the Canadian automotive aftermarket last year. Another is waiting in the wings. Experts predict which companies could change hands this year

26............... Baywatch 30............... CAR-TOONS

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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. Publisher | Peter Bulmer

(585) 653-6768 peter@turnkey.media Managing Editor | Adam Malik

(647) 988-3800 adam@turnkey.media Contributing Writer | Alana Baker, Zakari Krieger Creative Director | Samantha Jackson Video / Audio Engineer | Ashley Mikalauskas,

Nicholas Paddison Sales | Peter Bulmer, (585) 653-6768 peterb@turnkey.media

Delon Rashid, (416) 459-0063 delon@turnkey.media Circulation | Delon Rashid, (416) 459-0063 delon@turnkey.media Production | Tracy Stone tracy@turnkey.media

Jobber News is published by Turnkey Media Solutions 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. 43734062 “Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., Jobber News, 48 Lumsden Crescent, Whitby, ON, L1R 1G5 Jobber News Magazine (ISSN#0021-7050) is published six times per year by Turnkey Media Solutions Inc., 48 Lumsden Crescent, Whitby, ON, L1R 1G5 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.

President & Managing Partner | Delon Rashid

OUR CHANGING HABITS

he end of the year brings many reports, studies, reviews and prognostications. It’s a fun time because you get to see how things played out and you can start taking guesses at how things will be in the future. The subject I have found — and continue to find most fascinating — is our driving behaviour and how much it has changed. On the surface, it hasn’t changed. The pandemic years affected how much we drive but all accounts show that we’re at or exceeding pre-pandemic levels. That on its own is good news. But below the surface tells a different and interesting story. The pandemic changed our driving habits. Remote work became a real thing. In January, the CBRE Group Inc. reported that office vacancy rates in Toronto keep going up. The country’s financial centre has an office vacancy rate of more than 17 per cent. Canada’s national downtown vacancy rate hit 19.4. People commuting and putting wear and tear on their vehicles is a driver of aftermarket business. So if people aren’t driving to work, shouldn’t we be worried? Well, no. People aren’t parking their cars. Their habits are changing. As DesRosiers Automotive Consultants reported, gasoline consumption is above summer 2019 level. So people are still driving. Instead, hitting the road has even more appeal now. Remote work allows people to take extra long weekends — but still be working. So a two-day weekend getaway that would see half a day’s worth of driving can be extended to three or four days because the vacationer can open their laptop, attend virtual meetings and get work done at a hotel or their in-law’s spare bedroom. But — and here’s the implication for the aftermarket — there’s a certain segment of the population that can afford to do this. “It's a higher-income consumer that is not having to go to an office,” said Nathan Shipley, executive director of automotive industry analysis at market research firm Circana at AAPEX in the fall. “They've been untethered from their office and they're able to work from anywhere.” This changes who will be the more common aftermarket consumer. “So it starts to have implications on: Who's in stores, what products are sitting on the shelves, how are we promoting our products in store?” Shipley explained. That means it’s now the higher-income consumer who is frequenting parts stores and repair facilities. This marks a shift from the industry's previous focus on less affluent consumers, who might not afford a new vehicle and therefore choose the more economical option of repair over replacement. This forces the industry to think about how to cater to customers. More affluent customers have different expectations when they visit the aftermarket. “It changes how you go to market as a brand or as a retailer,” Shipley said. So keep an eye on the trends. The customer’s habits are changing. Your strategies may need to keep with the shift.

Head of Sales & Managing Partner | Peter Bulmer Corporate Office

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Adam Malik Managing Editor, Jobber News

Let me know what you think. You can reach me at adam@turnkey.media

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on your mind?

LETTERS

We want to hear from you about anything you read in Jobber News magazine. Send your email to adam@turnkey.media CHEAPEST OR BEST VALUE: WHAT’S THE DIFFERENCE? It will be the job of the service advisor to talk value to the customer, not price. If the service advisor comes across as compassionate there will be a good chance to convert the customer. Selling them on the value of dealing with your shop should be the focus of the conversation. Failing that if the consumer is only focused on price, they are not the type of customer you want and cut them loose. Bob Ward, The Auto Guys

THE NEW SKILLSETS TECHNICIANS WILL NEED As I read the article it struck me how far the educational system has strayed from the basics. We have always needed critical thinking in the trade. Without a proper foundation (basics), trades have nothing to build on. Principles of operation don’t change; they are applied in a different way. It’s sad to see how the change in focus has affected the quality of graduates and the attitudes towards technical trades resulting in a critical shortage of personnel. Kim Stankiewicz, Performance Initiative

I agree with Kim. We are here now. Hard to educate when there is no one with skill sets to do so. We need to start at ground zero and teach basics at an early age. I think we need to put the wonderment back into the youth in a hands-on way. Not sure how, but we need to turn the table here and be optimistic.

are still preferred over dealerships for service for many reasons. Bob Ward, The Auto Guys

MILLIONS OF UNSAFE VEHICLES ON CANADIAN ROADS Manufacturers should be made to fix safety-related recalls in a timely manner or face fines. They are all too quick to take your money when you purchase a vehicle. Maybe we should legislate that vehicles under an outstanding recall should not be sold at all. Bi-annual inspections would go a long way to prevent unsafe vehicles from being driven. Bob Ward, The Auto Guys

Dealerships already can not sell a new vehicle if there are outstanding recalls per the manufacturer’s own rules. As far as repairing safety issues in a timely manner, you should have worked in a dealership when the airbag recalls were on as there were just too many required and the supply chain was over-taxed. In the recall letters to the owners, they were advised that they should use alternate transportation till the vehicle could be repaired. Yearly mandatory inspections are just bad optics at the voter booths otherwise B.C. would never have gotten rid of them in the early 80s despite all techs saying they were badly needed. As a former CVSE inspector, we questioned why the inspections were not brought back and the answer was, “Well, right now we are focusing on the commercial vehicle sector.” Frank Turcott, reader

Tim Leslie, Capital City Acrylic

IS THERE ENOUGH COLLABORATION TO SOLVE TALENT ISSUES? Too many insurance companies still dictating collision shop door rates and they wonder why there is a lack of techs. What’s worse is we are still letting them do it, even when we can’t keep up with the demand. Gary Wilson, Wilson Collision & Alignment Center

HOW MUCH THE TECH SHORTAGE IS COSTING The main problem with the automotive trade from what I’ve seen, is that, on one hand, the shops and dealerships are crying about the shortage of people in the trade but then on the other hand they don’t want to pay a decent rate to attract/keep people, on top of the massive investment by techs required to be in the trade. I just had an interview at a dealership and they wanted to pay me less on flat rate than what I’m currently making hourly. Alex, reader

HOW WELL DEALER SERVICE DEPARTMENTS ARE PERFORMING Most dealerships pay their techs flat rate so productivity will be higher. It is all about getting jobs done faster. Independent shop owners are focused on repeat business and customer service which dealerships typically do not achieve. This is what wins customer loyalty. How frustrating is it to talk to a person at a dealership? All employees in the service sector at dealerships are incentivized on sales. Is this a key to success? Decide for yourself. Independent shops 6

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Alex is correct. We have a specialized shop. We have a labour rate that enables us to pay good salaries. Education starts young in schools. The curriculum in schools should include the ability to learn not only tech but also a hands-on skill. We need to be less pessimistic and deal with the elephant in the room. Today’s politicians collect our money, call it theirs and throw it back to the bling. Looks good on the outside but not a lot of substance inside. That is pessimistic because it will be a hard fix. Tim Leslie, Capital City Acrylic Repair

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ADVANCE AUTO PARTS COULD SELL WORLDPAC, CARQUEST ADVANCE AUTO PARTS announced it is beginning the

process of looking into spinning off its Worldpac division and its Canadian business under the Carquest banner. The announcement came as the company has decided to focus on a “blended box business model” as it also looks into a new cost reduction program. In its third-quarter financial report, it said the move the company could see at least $150 million in savings annually through the plan. Shane O’Kelly, who took the reins as president and CEO from Tom Greco in September, said he’s been working with the board and management in reviewing the business. Centreview Partners is working with Advance on the sale process. No timetable was given nor was a deadline for any potential sale. Advance also doesn’t intend to comment or give any updates on the possible sale unless they reach a conclusion or further updates are warranted.

VAST-AUTO OWNERS SELLING TO O’REILLY AUTOMOTIVE O’REILLY AUTOMOTIVE ANNOUNCED that it had acquired

Montreal’s Groupe Del Vasto, which operates as Vast-Auto Distribution. O’Reilly agreed to a stock purchase agreement with shareholders and will acquire all outstanding shares of Groupe Del Vasto and its affiliated entities. The stock purchase was expected to be completed in January

2024, subject to customary closing conditions and regulatory approvals. It will be O’Reilly’s first foray into Canada. Brad Beckham, O’Reilly co-president, confirmed that the current management team — led by president and CEO Mauro Cifelli — will remain in place “From their beginning more than 35 years ago, Vast-Auto has built a very successful business by focusing on the same fundamental culture values of hard work and excellent customer service that have also been key to O’Reilly’s success,” said Greg Johnson, O’Reilly’s chief executive officer. Vast-Auto has a pair of distribution centers and six satellite warehouses as part of its network of 23 company-owned stores and hundreds of strategic independent partners. It provides widespread service that extends to thousands of other independent jobbers and professional customers across Eastern Canada. “This is a significant milestone and fantastic opportunity for Vast-Auto and will be a catalyst to accelerate our expansion throughout Canada,” Cifelli said. “Our company has always been committed to a strong culture, hard work, and exceptional customer service and these values align perfectly with O’Reilly’s culture. We recognize the unique contributions that each company brings to the table and are excited to become a part of the O’Reilly family.” Founder and chairman John Del Vasto began his career as a technician and owned a service station and an auto parts store. “Our number one priority was finding the right long-term partner to safeguard the legacy of Vast-Auto,” he said in the announcement.

REPORT OUTLINES WIDENING TECHNICIAN GAP THE AUTOMOTIVE AFTERMARKET’S labour shortage has

doubled from one year to the next and is projected to worsen. The talent gap doubled from 2021 to 2022, and a new AIA Canada report estimates the industry could be short 4,000 technicians between 2024 and 2028. “So this shortage does pose problems for the industry and highlights an urgent need for skilled technicians,” said Mauricio Zelaya, partner and national economics leader at business advisory firm EY Canada, who presented the report, Our People, Our Success: Labour Market Challenges during a webinar. He further noted that the current gap will widen thanks to the rise in electric vehicle adoption. S&P Global Mobility reported that 10 per cent of new vehicle registrations in the third quarter

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NEWS

of 2023 were battery electric, with another 3 per cent plug-in hybrids. “As more and more people adopt electrical vehicles, the auto care industry must adapt to the increased significance of digital and technical skills related to vehicle electrification,” Zelaya said. “So this would require focus on training and upskilling technicians to meet the demands of this changing landscape. And the current shortage of skilled automotive service technicians is likely to be further heightened with the shift away from traditional ICE vehicles and towards EVs.” The full Labour Market Report is available from AIA Canada for free for members or $199 for non-members.

LORDCO OPENS SIXTH ALBERTA STORE THE NEWEST LORDCO AUTO PARTS store in Alberta

opened its doors in the fall in Red Deer. Lordco now has two locations in each of Edmonton and Calgary, plus one in Airdrie, just north of Calgary. “The successive expansions highlight Lordco’s unwavering dedication to delivering top-tier automotive parts and accessories, extending its commitment beyond British Columbia to serve the

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Lordco's newest store in Red Deer

Its latest location features a truck centre and 2,050 sq-ft. of floor space

thriving automotive community in Alberta,” Lordco said in an announcement. The new location is located at 6833 66 Street. Its automotive products ranging from OEM and aftermarket parts to accessories, tools, and maintenance supplies. The store serves both the professional technician and DIY enthusiast in the area. “We are very excited to be opening a new store in Red Deer, Alberta. We have received a warm welcome and look forward to introducing ourselves to the local community,” said Shaun Wheater, Alberta regional manager for Lordco. This new location features a truck centre and 2,050 sq-ft. of floor space.

DesRosiers Automotive Consultants reported sales of 1,664,000 units last year, a 12 per cent increase from the fewer than 1.5 million in 2022. The increase was thanks to improved vehicle supply, particularly in the second half of the year. December was a strong month with about 120,000 vehicles sold, 1n 11 per cent increase from the same time in 2022. That now puts year-over-year growth at 14 straight months with sales up in all provinces, as supply and demand match up. DesRosiers noted that 2023’s fourth quarter “was remarkably robust.” It reported a 17 per cent sales increase and a seasonally adjusted annual rate of near or above 1.8 million units. DesRosiers credited pent-up demand from the lost sales years between 2020 and 2022. High interest rates and concerns over economic weakness didn’t seem to deter many buyers.

NEW VEHICLE PRICES JUMP

ART TURNEY’S GARAGE NAMED TOP SHOP CARS magazine named Art Turney’s Garage in Peterborough, Ontario, as its 2023 Shop of the Year Award winner. It was chosen for its dedication to fostering a successful shop by encouraging training, allowing for a flexible work schedule, longevity in the community and maintaining loyalty among its patrons. Notably, even though the Turney family no longer owns the business, they continue to visit the shop for their auto care needs. The business, which dates back to around 1930, is owned by McWilliams Moving & Storage, one of the garage’s first customers under its namesake owner when a new location was opened in the 1980s. The full feature on the shop can be found in the December issue of CARS magazine.

BUYERS RETURN TO DEALERSHIPS AFTER A DISAPPOINTING end to 2022, Canadian new vehicle

sales in 2023 saw a solid rebound.

PRICES PAID FOR NEW vehicles in Canada were up 6 per cent before the end of 2023. Data from DesRosiers Automotive Consultants show that the average transaction price for a new light truck or passenger car is $52,900 — up from the end of 2022 when the average transaction price was $49,9000. Driving that jump is the increase to light trucks at an estimated transaction price of $54,000 on average by the end of the third quarter this year. Passenger cars came in at $46,000. Both are up from $51,700 and $41,800, respectively, at the end of 2022. Because light trucks make up about 86 per cent of vehicle sales, the overall average transaction price skews higher. These figures once again represent the highest transaction prices ever in Canada. Andrew King, managing partner at DesRosiers, noted that there has been a $10,000 jump — almost 20 per cent — in the average transaction price for light vehicles over the last four years.

DRIVERS NOT SHYING AWAY FROM ROAD TRAVEL GASOLINE CONSUMPTION IN Canada has not only shown

resilience but is now peaking past pre-pandemic levels despite concerns about drivers deciding to pull back. How much people drive is a key variable for the automotive aftermarket, indicating long-term health for the industry, DesRosiers Automotive Consultants observed in a recent report. It noted that summer 2023 numbers surpassed numbers seen in the summer of 2019. The story is much the same in the United States. While projections showed miles travelled would drop this year, that hasn’t

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NEWS

PLUGS AND COILS GO TOGETHER LIKE EMPTY PARKING LOTS AND BURNOUTS.

Some things are just better together. Replacing the ignition coils when you change your spark plugs will help boost performance and efficiency — so you will always get the most out of your engine. NGK now carries a full line of ignition

happened, reported Todd Campau, aftermarket practice leader at S&P Global Mobility. Through the first three quarters of the year, the miles travelled stat is looking to be flat or even up slightly. “So there may be some upside on miles travelled this year if the last quarter continues as strong as the first three quarters, which is really surprising to me,” he said at AAPEX 2023. This is surprising because drivers on both sides of the border are going through periods of economic uncertainty, high inflation, elevated interest rates — everything around them is costing more. “When the cost of goods and services are higher, we typically see people pull back on vehicle miles travelled. And we’re really still not seeing that, at least not to a significant level,” Campau said during the session, Trends Impacting the North American Aftermarket.

P.E.I. MAY CHANGE ANNUAL INSPECTION RULES VEHICLE OWNERS IN Prince Edward Island may soon have to get vehicle inspections every two years instead of one. The provincial government is considering changing the frequency requirement of motor vehicle inspections. “I think the other thing we have to look at is insurance rates” and any impact MVI frequency would have on them, said provincial transportation minister Ernie Hudson, according to the CBC. The push seems to have come after Green Party MLA Peter Bevan-Baker asked the government why safety inspections are done annually. He suggested the province consider the move to ease the financial burden on vehicle owners. Inspections are done every two years in Nova Scotia and New Brunswick. Other provinces only require inspections when vehicles are sold from one owner to another. The review was expected to be done by mid-December. Results have not yet been released.

coils to cover most applications. Visit ngksparkplugs.ca to learn more.

TWO COACHING GROUPS MERGE THE INSTITUTE FOR Automotive Business Excellence announced a merger Herzberg Smith & Co. Michael Herzburg Smith will join, Jimmy Lea as part of the institute leadership’s team as the chief strategy officer. He will spearhead the company’s expansion programs, fostering client high performance, facilitating strategic growth and orchestrating succession plans.

NAMES IN THE NEWS

Herzburg Smith has built numerous businesses and supported clients for 42 years across more than 40 different industry verticals. The announcement explained that he “was asked to bring his extensive knowledge base first to advise a leading automotive service company seven years ago, and his team has since focused exclusively on accelerating top independent auto service companies.”

SMALL BIZ IGNORING CYBERCRIME RISKS THE INSTITUTE FOR Automotive Business Excellence

announced a merger Herzberg Smith & Co. A report from MasterCard found a 600 per cent increase in Canadian cybercrime since the start of the pandemic. But, it noted, business owners across Canada said they struggle to invest in cybersecurity tools to protect them due to limited resources and lack of know-how to recover after an attack. Cyberattacks are a matter of when, not if. Mastercard reported that just 16 per cent of Canadian small business owners are certain they know the best steps to take following a cyber attack — not even one in five (only 18 per cent) have total confidence that their business would recover fully from an attack in the next six months. Added insights from the Insurance Bureau of Canada. Its 2023 Cyber Security Survey found that more than three in five small businesses believe their business is too small to be targeted by cybercriminals. This number rises to 73 per cent for sole proprietors. Most business owners surveyed were not concerned about their staff posing a cyber risk, IBC reported. However, three-quarters of employees surveyed admit to having taken at least one action that poses a cybersecurity risk. While large corporations are common targets for cybercriminals due to their size and level of reward, smaller businesses are often easy targets because they don’t have the same safety protocols in place, nor do they train staff adequately to protect company assets.

CUSTOMERS CRY FOUL OVER REPAIR COSTS A NEW SURVEY shows that distrust of vehicle repair shops is almost universal among consumers in the United States. Vehicle maintenance and repairs are creating more confusion and distrust for consumers than any other type of service, including legal, accounting and medical, according to Jerry, a car owner app.

Brent Berman has joined Specialty Products Company

to oversee sales, marketing and other key functions for the company. Jeoffrey Boutet is the new Eastern Canada regional sales

manager at Wakefield Canada. He will oversee the Quebec and Atlantic sales team.

Mann+Hummel named Patrick Verriet its new Canadian business development manager. He takes over from Steve Ellis, who retired at the end of 2023. Rob Keam is the new sales manager at APD. He was most recently senior sales manager for Western Canada at Tenneco. J.C. Washbish is now president of the Aftermarket Auto Parts Alliance. He will lead the Alliance’s executive staff and shareholder membership. Philippe Emond, president and owner, GFGM Marketing has been named CRP Automotive’s 2023 Canadian Sales Representative of the Year.

Fountain Tire executive chair and former AIA Canada chair Brent Hesje was inducted in the Northern Alberta Business Hall of Fame. Ann Wilson will retire at the end of 2024 from MEMA, The

Vehicle Suppliers Association. She will serve as executive vice president of MEMA government affairs during her transition.

The Aftermarket Auto Parts Alliance promoted Kendall Schaus to field sales manager. She had been field sales

representative since joining the Alliance in 2020.

Almost all respondents said they don’t trust their vehicle repair shop to treat them fairly. Nearly nine in 10 claimed they’ve been overcharged or may have been overcharged at one time. More than half (56 per cent) said they’ve probably paid for a service they didn’t need. That number jumps when asking the younger generations — 65 per cent of Gen Zers say so, while it’s 64 per cent for Millennials. About two thirds (65 per cent) of vehicle owners said they’re frustrated because of a lack of transparency over what repairs and other services should cost at auto repair and maintenance shops. But these frustrations aren’t enough to shop around themselves — 64 per cent said they don’t price compare for repair and maintenance services. w w w. a u t o s e r v i c e w o r l d . c o m

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SPONSORED BY:

Stats that put the North American automotive aftermarket into perspective

40 years old

89%

Most DIY work is done by those under 40. After this, most feel they can save more money DIYing home renovations than working on their vehicle.

Most respondents to a survey said they’ve been overcharged or may have been overcharged at one time at their repair shop.

Lang Marketing

Jerry

66%

A “lack of funds to pay for maintenance and care” was a reason for all age groups to wait when it comes to tackling car issues. 2023 MarketWatch Generational Car Care Survey

44%

$39,934 A U.S. shop owner’s total fine after paying out a former employee’s final payment in oily pennies with an expletive note attached has been ordered to repay the employee and other ex-staffers.

Gen Z is the most active group of car buyers since the COVID-19 pandemic started. Nearly 20% bought a car in 2020 alone. Jerry's State of the American Driver Report

Northern District of Georgia Newnan Division

54% 1,664,000 New vehicle sales in Canada rebounded in 2023 from 1.49 units sold the year before. The increase was highest year-over-year since 1997. DesRosiers Automotive Consultants

A majority of Canadians plan to buy a hybrid or electric vehicle as their next car. That’s similar to figures shown one year ago. Jerry's State of the American Driver Report

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Fewer Canadians are working from home permanently in 2023. Last year, that number was 27%. This year, 29% are working hybrid. EY Canada

$9.1 BILLION The value of the automotive service market dropped from a high of $10.9 billion in 2022 to back in line with pre-pandemic figures in 2023. J.D. Power

19%

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OP-ED

PERSEVERANCE, COMMITMENT, ACTION Building on the right to repair momentum in 2024

023 saw a rejuvenated voice for Canada’s auto care sector, supported by bolstered advocacy efforts to address a top issue of concern: Legislated access to vehicle data, safeguarding the rights of consumers to secure mechanical and collision repair services in the automotive aftermarket — otherwise known as the right to repair. Over the last 18 months, AIA Canada moved swiftly to generate a political plan of action, which involved key initiatives, such as the launch of a global right to repair position statement; a dedicated microsite, righttorepair.ca; and the execution of a targeted multipartisan direct outreach campaign, including AIA Canada’s cornerstone advocacy event, Parliament Hill Day. Thanks to the support of our members, AIA Canada and the industry have since seen several wins, including the first right to repair law (including vehicles) enacted in Canada in the province of Quebec; the unanimous passing of federal Bill C-244 in the House of Commons, and now being studied in the Senate; for the first time, a commitment in the 2023 Federal Budget to implement a right to repair framework; and, also for the first time, a further expanded commitment in the 2023 Fall Economic Statement in support of Canadians’ right to repair. Each achievement plays a vital role in charging a path forward to achieving standalone national legislation. However, while we have moved the needle in the right direction, this work is only just beginning. And there is much more to be done. As we hit the ground running in 2024, our focus will be centered around securing additional support and financial resources to assist in the roll-out of a continued and strengthened campaign and see the government through on its 2023 commitments in pursuit of a legislated solution.

Importantly, it is also imperative that the industry mobilize a strong opposing voice to counter the thinking that an outdated voluntary agreement is enough — a message that is constantly shared by the automakers in their pushback and continues to penetrate the thinking of federal decision-makers. The risk of inaction is too great to not alter this status quo mindset. Our government advocacy and media work will continue; however, we will not be successful without engagement from industry at the local grassroots level. Indeed, grassroots communication of concerns has the greatest impact on political representatives. With competition and affordability top of mind, newly announced Government of Canada electric vehicle sales regulations, and another federal election upon us before we know it, we cannot afford to wait. The time is now, and we need your help. To support the future of vehicle right to repair, protect your business, customers and your bottom line and preserve consumer choice, we urge you to get involved by signing up to become a grassroots champion. Learn more and sign up today by visiting righttorepair.ca. Successful legal recognition of vehicle right to repair will require a commitment from the entire industry, and a strong dose of perseverance. Remember: Members who speak up get heard by political decision-makers and can positively impact changes. Alana Baker Alana Baker is vice president of government relations and research at the Automotive Industries Association of Canada. If you are in a position to make a financial contribution to directly support AIA Canada’s right to repair campaign, please contact her at alana.baker@aiacanada.com for more information.

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INDUSTRY EXPERTISE

NAVIGATING I the future

Challenges and opportunities for Canadian jobbers

n the ever-evolving landscape of the Canadian automotive aftermarket, jobber auto parts stores face a unique set of challenges and opportunities. With a decade of experience managing and owning a group of auto parts stores, I've observed the industry undergo significant shifts, particularly in the realms of consolidation, technology adoption and parts proliferation. Let’s explore both sides of the coin each area presents.

“YOU NEED IT, WE’VE GOT IT”. THAT’S NAPA KNOW-HOW. Over 500,000 vehicle parts and products in inventory, all ready for delivery: that’s over 500,000 good reasons to make us your number one partner. napacanada.com

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Consolidation

The golden age of change that the Canadian automotive aftermarket is currently witnessing could be termed the ‘golden age of consolidation.’ Major players, like O'Reilly's acquisition of Vast Auto Distribution, UAP and LKQ/Uni-Select's ongoing M&A efforts are reshaping the industry. For jobbers, understanding the implications of these consolidation trends is crucial. Whether it's capitalizing on exit strategies or strategically integrating with M&A activities, jobbers must recognize the changing dynamics. As the focus shifts from price discussions to creating a unique selling proposition, the keys to thriving lie in maintaining a financially healthy business, optimizing staff performance, ensuring operational efficiencies, capital reinvestment, embracing technology, and securing access to inventory.

Technology

It’s time to embracing evolution for success. In an era where consumers and B2B clients are increasingly educated and demanding higher levels of service, technology becomes a cornerstone for success. The rise of services like Amazon Prime has made parts and supplies more accessible, transforming the business landscape. Reflecting on experiences with UAP and my NAPA Auto Parts stores, investing in technology has been a pivotal strategy to capitalize on evolving consumer trends and enhance operational efficiencies. Now, as an integral part of the service chain, the critical importance of innovation and efficiency in the partnership between shops and jobbers is evident. Jobber stores must prioritize forwardthinking technology adoption over traditional methods, emphasizing

the significance of their "banner" in the context of their business rather than merely relying on creating specials and buying product lines.

Parts proliferation

There will be a need for balancing risk and evolution. Managing parts proliferation and the associated need for increased space and working capital presents a significant challenge for jobber stores. The continuous expansion of SKUs necessitates strategic decisions on inventory requirements and investments in space-saving technology. While larger companies can easily reinvest in CAPEX, jobbers face a dilemma — whether to take on more risk with investments and allow their business to evolve or risk losing a competitive advantage. The key lies in finding the delicate balance between innovation and risk, ensuring that investments contribute to future success rather than becoming a financial burden. As jobber auto parts stores navigate these challenges, a proactive approach is essential. By understanding the implications of industry consolidation, embracing technology for enhanced customer service, and strategically managing parts proliferation, jobbers can position themselves not only to survive but thrive in the dynamic Canadian automotive aftermarket. The key is to remain adaptable, forward-thinking, and committed to evolving with the ever-changing industry landscape.

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2024 EXECUTIVE OUTLOOK

2024 JOBBER AND SUPPLIER EXECUTIVE OUTLOOK Challenges facing the broader economy point to opportunities in the aftermarket. But leading industry experts highlight the challenges that lie within // By Adam Malik

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anadian jobbers and their supply partners appear to have an equal amount of hope and skepticism for the year ahead. On the positive side, many of the factors that kept the aftermarket chugging along last year will continue in 2024. Driving trends show that people are still driving. Data from the U.S. showed vehicle miles travelled didn’t drop as they were expected to through the first three quarters of 2023. In fact, miles travelled may be up compared to the year before. DesRosiers Automotive Consultants reported gas consumption in the summer of 2023 surpassed what was seen at the same time in 2019. Supply constraints eased throughout 2023. Though port strikes and wildfires slowed down some goods movement, the situation improved overall. Suppliers were forced to enact better, or different, forecasting actions. Inventories were too high in some areas, forcing a correction. Distributors and jobbers should expect a smoother supply of product going forward. On the consumer front, new vehicle prices and availability continue to work in the aftermarket’s favour. While new vehicle sales rebounded mightily in 2023 — up to 1.66 million from 1.49 in 2022 — prices have stayed elevated. Part of the problem is the wrong kind of inventory sits in dealerships. It’s the top-line, fully equipped vehicles that are not affordable to most of the buying population. “That's the kind of inventory we have right now. It's not the stuff that is reasonable to most consumers; it's not the kind of stuff that is affordable to most consumers,” said Guido Vildozo, senior manager of light vehicle sales forecasting for the Americas at S&P Global at Canadian Black Book’s Talk Auto 2023 event near Toronto in the fall. “So yes, inventories from a larger picture perspective are starting to normalize ... but it doesn't mean that it's the right product.” And this leads into talk about the economy. Interest rates are up and staying there for now. Inflation was elevated but has come back down to more manageable levels — but consumers are still feelings its effects. Times like these can lead to pessimism about certain industries. But not for the automotive aftermarket. Not entirely, anyway. When times are tough and the price of a new vehicle seems too high — even in normal times — owners will opt to repair their vehicle rather than replace. These are not normal times, pushing greater emphasis on the advantages of consumers visiting the aftermarket to keep their vehicles in good shape. This was the case in 2023 and leaders across the industry expect it to continue in 2024. But there are real challenges ahead. One can expect pressures of the economy to leak into consumer preferences in the aftermarket. Furthermore, the implementation of electric vehicles remains a question mark in terms of how it will progress. Goals are one thing, but will consumers respond to more affordable options and ones that better fit their lifestyle? Labour and talent issues will continue to pose challenges. Consolidation isn’t expected to slow down. So we turned to the leaders of this industry to help shed some light on what can be expected going forward. We reached out to 10 of the top aftermarket minds and asked them: What will be different about 2024? What’s the biggest challenge the sector will face and how can it be tackled? What opportunity is out there for jobbers and suppliers to grab? In alphabetical order, here’s what they told us…

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2024 OUTLOOK THE UPCOMING YEAR presents a transformative phase for Canada's

Nick Brunet

PRESIDENT, COO | BESTBUY DISTRIBUTORS LIMITED

Investing in staff training, especially in EV technology and sustainability, is another key to success in 2024.

automotive aftermarket, marked by both emerging challenges and opportunities. A pivotal trend in 2024 is the increasing adoption of electric vehicles (EVs) in Canada. This shift necessitates an adaptation in the market, particularly for jobbers and suppliers. They must extend their expertise and inventory to include EV-related products and services, leveraging their strengths in customer service and local market insight to stay competitive. Simultaneously, the Canadian automotive aftermarket is witnessing a notable phase of consolidation. This trend sees smaller players merging with larger entities, leading to a more concentrated market landscape. While this consolidation can lead to greater efficiencies and stronger market presence, it also poses challenges for smaller jobbers and suppliers striving to maintain their unique identity and customer base. Navigating this environment requires strategic planning, with a focus on niche markets, specialized services, or forming strategic alliances to retain competitiveness. The persisting issue of supply chain disruptions remains a hurdle. To combat this, jobbers and suppliers must cultivate resilient and diversified supply chains and improve logistics management using the latest software systems. Investing in staff training, especially in EV technology and sustainability, is another key to success in 2024. This investment will empower businesses to meet the evolving demands of the market. 2024 is a year of significant evolution for Canada's automotive aftermarket. The sector's potential lies in adeptly managing the market's consolidation, embracing new technologies like EVs, and committing to sustainable practices. Those who adeptly navigate these changes will emerge as leaders in the evolving landscape.

I BELIEVE THAT we will continue to experience some of the post-

pandemic uncertainty. We can expect the combined effects of inflation and high interest rates that Canadians faced in 2023 to be felt in 2024 as some consumers curb expenses. This may slow the sales of new cars, which should have a positive impact on the auto care sector as consumers keep their cars longer. However, we will need to keep a close eye on this and see if it also reduces the number of kilometres driven by Canadian vehicle owners. Labour will continue to be front and centre to the challenges the industry is experiencing. The aging population and lack of diversity in our sector will continue to negatively impact our capacity to attract and recruit new people. Going forward, we need to ensure our businesses are changing to be more attractive and welcoming to women and people from different backgrounds. Newer vehicles are becoming increasingly electric and connected. While they are more complex to repair, they can create new opportunities for our sector. These new technologies can appeal to the next generation and are an opportunity to attract new talents. It is time to invest in knowledge, technology, and people to ensure we are part of the future of the maintenance and repair of tomorrow’s vehicles. 18

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J.F. Champagne

PRESIDENT, | AUTOMOTIVE INDUSTRIES ASSOCIATION OF CANADA

Labour will continue to be front and centre to the challenges the industry is experiencing.

Jeff Coolen

CHIEF INFORMATION OFFICER | LORDCO AUTO PARTS

The upcoming year has many headwinds, including escalating costs, consolidation, rapid government policy changes and continually evolving technology.

INTEREST RATES MAY decline but will continue to remain restrictive as governments work to address pandemic-induced inflation. The combination of inflation and interest will continue to put additional pressure on the consumer. Sustained high costs of new vehicles combined with current interest rates will continue to drive consumers to seek more cost-effective options for vehicle maintenance and upgrades. These market forces will collectively translate into a strong year for the aftermarket. The upcoming year has many headwinds, including escalating costs, consolidation, rapid government policy changes and continually evolving technology. Effectively addressing these headwinds requires the right talent — talent that is increasingly in demand. Attracting and retaining talent has become the single biggest challenge for 2024, and there is no single simple action or easy button that can close this gap. Creating an inclusive environment that embraces a growth mindset will form a foundation in which team members can see their future. The path to success starts with developing a clear vision for the organization and its culture, supporting it with strategy, and delivering it through a planned roadmap for change. From pandemics to supply chain chaos to inflation to an engineered economic slowdown to tame inflation, the only constant is change and the threats and opportunities it creates. Teams need insights to help them successfully navigate these changes. While experience, instincts and attitude are critical, facts and data provide clarity. Developing and harnessing data insights becomes crucial to swiftly comprehending an ever-changing business landscape and identifying how to adapt and thrive.

I BELIEVE THE automotive aftermarket will continue to be busy due to the rising cost of everything — inflation, interest rates, taxes and new vehicles, to name a few. With these burdens, people will hold on to the vehicles they have and continue to repair and service them. This will be helpful to the whole aftermarket. I think the biggest challenge for jobbers and suppliers will be employees. We can all see the many different opportunities in other industries and what they will pay. We need to look after our biggest asset: Our people. We need to keep them happy. We do cross-training with employees. This helps with shortages and also gives staff the opportunity to advance up the ladder. They also have a better picture of how the whole organization runs. The top opportunity for jobbers and suppliers will be diversification, I believe. To seize the opportunity we must listen to our customer base for products they asking for. We should also look at products we have that each customer is not buying from us. Our suppliers should be doing the same. We as jobbers have to maintain our own knowledge base so that we can educate our customers on the changes that occur within the industry and the products and services that we provide.

Trevor Heinze

2023 JOBBER OF THE YEAR | CHIEFTAIN AUTO PARTS

We need to look after our biggest asset: Our people. We need to keep them happy.

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2024 OUTLOOK

Chris Kinghorn

VP, STRATEGY AND GROWTH | NAPA AUTO PARTS

Typically, the automotive aftermarket is well positioned during times like this because people repair what they have.

PEOPLE ARE STILL getting into the groove of going back to work. Expect kilometres driven to continue to climb, keeping the need for automotive service and repair going at a steady rate. Inflation will be an issue for consumers. They’ll be pressed with interest rates even with declines on the horizon. People have mortgages being renewed. Costs for people are going up. Typically, the automotive aftermarket is well positioned during times like this because people repair what they have. Prices of used vehicles are going to remain steady. People are going to invest in the vehicles that they have so that they can maintain mobility. A challenge in the business is just attracting great people to our industry. The automotive aftermarket is under-recognized with the career paths and potential available within our business. We need to get people to recognize that you can start in a store and there are great career progression opportunities. How do we attract? People are on social media — be present. Show the culture and values of your company, your investment in the community and the things you do to create a place people want to work. Show your cause, passion and values that resonate with people. Finding a way to display that professionally is important. The world is rapidly changing. There's a lot of technology that can help you streamline your business to accomplish more with the people that you have and make people better. You can enhance your overall offering if you embrace those technologies and platforms. That’s exciting.

CONSUMERS WILL CONTINUE to extend vehicle life due to challenges with new vehicle supply which presents opportunities for jobbers. EV sales will increase but market constraints will slow this pace and reduce adoption. The large U.S. chain coming to Canada and another selling off the stores will result in uncertainty about the future. Market consolidation will continue, and small jobbers and regional or small program groups will struggle to compete. The lack of industry succession planning will increase consolidation and the number of jobbers in Canada may shrink. The global supply chain still has fill rate issues. Jobbers with strong inventory management will succeed whereas others will fail. Sourcing from nearshore will help timing but jobbers and suppliers need to increase their inventory safety stock, bulk order when supply is available and focus on improving their supply chain management. Finding and retaining knowledgeable staff will continue as an issue until a focus is placed on attracting and training staff in the industry. Rising debt will result in M&A opportunities on a macro level and jobbers can grow at the micro level due to an aging ownership base with limited succession planning. Those who took advantage of recent strong years' performance to improve their financial stability are positioned to capitalize on those struggling with high interest rates and debt loads. Dependable supply of inventory will be key in navigating these changes and those able to optimize and bulk up on inventory will succeed while others will struggle to compete. 20

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Douglas Squires

PRESIDENT, CEO | COLONIAL GROUP (COLONIAL AUTO PARTS AND APM LIMITED)

The large U.S. chain coming to Canada and another selling off the stores will result in uncertainty about the future.

THE AFTERMARKET WILL continue to grow (units and dollars) as

Sean Stokes

VP OF AUTO PARTS, GM | PARTSOURCE

Finding and retaining quality staff and technicians, while balancing a positive cash flow, will be the biggest challenge.

consumers will continue to face macroeconomic pressures like inflation and high interest rates. The average consumer will continue to repair older vehicles versus purchase new (although I believe new vehicle sales for 2024 will be higher than they were in 2023 due to pent-up demand). Parts supply will be in a positive position versus the previous three years, so success will be driven by seamless customer service and a strong value proposition on quality parts for the DIY and DIFM channels. Right to repair will continue to be an important topic. We must support AIA Canada in its efforts to communicate this with key stakeholders. Finding and retaining quality staff and technicians, while balancing a positive cash flow, will be the biggest challenge. Companies need to create and offer relevant training programs for staff and ensure recognition programs are in place. They must ensure an environment that respects diversity, inclusion and belonging in the workplace. The industry must work through AIA Canada to ensure the automotive aftermarket is seen as a positive career possibility by students. The top opportunity is a three-pronged approach. First, invest in the right partner with the right inventory programs to support your business long-term growth. Secondly, stay on top of customer needs. Be proactive in communicating the jobs they need to have completed (strong warranties will become even more important in 2024). Lastly, ensure your teams embrace a growth mindset where team members look for new ways to do things and embrace setbacks as learning opportunities.

BIGGEST HOPE IN the next year is the passage of C-244 by the

Canadian Senate as well as the passage H.R. 906 – the REPAIR Act in the U.S. A secured win for right to repair in North America will be paramount in shaping the future of the automotive aftermarket. Should the right to repair movement face setbacks, then winds of uncertainty will continue to blow throughout the industry. Uncertainty breeds other issues. This is a united effort — everyone should do their part. We are asking all independent jobbers, shop owners, retailers and distributors to reach out to their elected representatives and inform them on right to repair. We need as many people as possible on this. We need to do it; we cannot afford to sit on our hands and hope the heavy lifting will be done by our trade associations or someone else. In the near future, this could be a challenging year for the Canadian economy, as high interest rates and inflation hit Canadians hard in 2023. On the upside, the general consumer will be repairing the vehicles they already own versus buying new vehicles. Now is the time for suppliers and jobbers to partner with repair shops and encourage vehicle owners to invest in their vehicles and maintain them with recommended service. A strong partnership between parts suppliers and customer repair shops is what wins the day, particularly with customer service, honest communication and parts availability. To sum it up: Will 2024 have its challenges? Sure. And with these challenges will come great opportunities.

J.C. Washbish

PRESIDENT | AFTERMARKET AUTO PARTS ALLIANCE

We need to do it; we cannot afford to sit on our hands and hope the heavy lifting will be done by our trade associations or someone else.

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2024 OUTLOOK EXPECT 2024 TO look a lot like 2023 — good customer demand, no major

David H. Williams

CEO | OPTICAT/JNP SOFT

Jobbers and suppliers must take full advantage of all the new and unique pathways for their products to get to market.

supply chain interruptions, no major economic issues, etc. A few notable M&A events will have an impact. I would expect a few big suppliers could be acquired, as well as distributors, resulting in further consolidation. New EV sales could cool, especially if the CARS Act is passed in the U.S. — I would expect the pace of aftermarket replacement part development to slow down for EVs and focus would shift back to hybrid and ICE powertrains. Managing costs for jobbers/suppliers is going to be the most significant challenge. I don’t foresee relief in the cost of labour, freight, raw materials, etc. next year. Couple rising operations costs with increased pressure from customers and competitors and expect many jobbers/suppliers to feel the squeeze on profitability. They will seek to partner with third parties to outsource, automate and optimize critical functions to manage and scale costs. Jobbers and suppliers must take full advantage of all the new and unique pathways for their products to get to market. There’s been an increase in the number of services provided to shop management systems to integrate parts ordering and catalogues. New players are all using jobber/supplier product information. This is the best way for suppliers to get their products directly in front of professionals to build the brand and make a sale. Those with the best content will win as it gives the repair shop confidence that they are ordering the right part to reduce the risk of a comeback or a return.

I BELIEVE CONSUMER spending will decline in 2024. The automotive aftermarket may witness a shift towards economy and value-driven product options. This adjustment is likely a response to the key year for mortgage renewals, where many Canadians will be grappling with substantial increases in their monthly payments. As households tighten their budgets, industry players may need to adapt to a market that prioritizes affordability over premium offerings. The industry continues to see a trend toward mergers, coupled with a sense that some manufacturers might exit the marketplace. This evolution in the competitive landscape underscores the need for adaptability and strategic planning among jobbers and suppliers. This year will bring the challenge of right-sizing our inventories and analyzing real demand. With the supply issues we experienced in the last 24 months, there was “artificial demand” in the marketplace. With shortages, many levels of the supply chain upped their inventory levels to have stock. This strategy paid off as even dealerships did not have product. Clients were buying inventory from any source available giving many aftermarket suppliers a boost in sales. As the supply chain normalizes, we need to analyze and adjust what was real and artificial demand and adjust our levels accordingly. Canada's environmental regulations have also affected many chemicals. Proper solutions will need to be identified. Average car prices are at an all-time high. The increased value of new and used vehicles makes the spend on parts and maintenance prudent. The ratios now make sense for investing in vehicles. 22

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Zara Wishloff

PRESIDENT, CEO | AUTOMOTIVE PARTS DISTRIBUTORS

As households tighten their budgets, industry players may need to adapt to a market that prioritizes affordability over premium offerings.

Onthe Road Student Aftermarket Day November 22, 2023 Barrie, Ontario

See the event reel on Instagram

The annual Student Aftermarket Day hosted by the Young Professionals in Auto Care (YPA) group was held for the first time on campus at Georgian College’s Automotive Business School of Canada in Barrie, Ontario. It drew in students from the program and professionals from across the industry. Students got to hear from alumni like YPA chair Patrick Verriet, Costa Haitas, Devin TerMarsh and Stephanie Cooney-Mann. J.F. Champagne from AIA Canada, Shannon Langsford from Mevotech and Saar Haimovici from Canadian Tire made presentations to students, who also got to take part in a career showcase and networking session with aftermarket company representatives.

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FUTURE M&A

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Looking at this year’s M&A market Consolidation is a common occurrence in the automotive aftermarket. What does the landscape look like going forward and which other companies could be sold?// By Adam Malik

erger and acquisition activity in the automotive aftermarket doesn’t show any signs of letting up even though the calendar flipped to a new year. There was a flurry of activity last year, highlighted by several major deals. Things kicked off with LKQ announcing in February that is was working on a deal to buy Montreal-based UniSelect. That acquisition closed later in the year, which also included GSF Car Parts in the U.K. Fresh off that news, Uni-Select acquired Auto Parts Central and Central Canada Industries, both owned by Wayne Maunula. The jobber has 14 locations stretching from Thunder Bay, Ontario, to Moose Jaw, Saskatchewan. And just before the end of 2023, O’Reilly Automotive announced it was buying Groupe Del Vasto, the parent company of Vast-Auto. That deal was expected to close in January of this year. Though no deals have been made yet, Advance Auto Parts announced it wants to unload Worldpac and its Canadian operations of Carquest. So what can the Canadian auto care sector expect in 2024? The question was put to three aftermarket experts. And there is no shortage of possibilities. Joe Mercanti, retired industry veteran, initially thought that Carquest would be a natural target for O’Reilly before hearing about 24

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its acquisition of Vast-Auto. However, he noted, O’Reilly may eye the other Auto Value members as part of a nationwide expansion. Vast-Auto was part of the Auto Value buying group under the Automotive Aftermarket Parts Alliance. Meanwhile, an industry source who was granted anonymity in order to speak freely, urged people to keep an eye on LKQ. “I suspect it will be decision time at some point specific to their automotive group, as they focus in on the [paint, body and equipment] sectors, which is their strength,” the anonymous source said. “Cracks starting to show now with their independent membership.” Look at who’s left south of the border that hasn’t made a move north, even as Advance looks to sell Carquest, observed Kumar Saha, U.S. vice president and Canadian managing director of global automotive data firm Eucon. “So who remains? AutoZone, who doesn't really have any kind of a presence in the market,” he said in an interview. “With Advance and NAPA and now O'Reilly, all the big three have some footprint over here. So, who knows, maybe next up is AutoZone. As you look across the Canadian aftermarket landscape, keep an eye on distributors that have aging ownership — what are their plans and with which companies do they fit best, the anonymous source wondered.

When consolidation happens in the market, I think the biggest challenges faced by suppliers because they feel pressure to keep their costs low and there's more bargaining power. Furthermore, he noted, look for NAPA, Modern Sales, Monaco Gorup and Bestbuy to pick up members that don’t fit within the O’Reilly platform, calling them the winners of all this activity. And what of Worldpac? The observers were divided. “I also believe Advance will have a tough time selling Worldpac, as they are up for all of North America, not just Canada,” the anonymous source told Jobber News. Mercanti, on the other hand, said in an interview that he believes Worldpac will be picked up quickly and from a non-industry player. He was a national sales manager with the distributor until his retirement in 2021. “In a year, it will be bought, and it will be bought by an equity firm. This is my opinion. And the reason being because it makes money,” Mercanti said. “It'll surprise me if a competitor buys them but I don't think so. I think that no competitor has the deep pockets

as you're going to need to do that.” On the cost to acquire, the anonymous source agrees. “Other network groups probably cannot afford Worldpac, except LKQ,” they said. “Which, if that happened, could solidify their position in parts; as opposed to PBE and crash parts.” Mercanti and the source agreed that Carquest will be a separate transaction from Worldpac. “And, for a long shot, don’t count [Canadian Tire] out of the Carquest purchase,” the source said. “Their auto repair sector has been sliding for years now (except for tires and batteries) for a number of reasons, and PartSource is stagnant. I suspect they are also noodling their aftermarket strategy these days.” Or, perhaps as Mercanti observed, its parent company, Advance Auto Parts, may decide to hang on to Carquest. “They might even keep it,” he said. “They're going to get the best bang for the buck from Worldpac and bring in a lot of cash. That's what Advance needs.” Nevertheless, expect more moves. “It's kind of hard to say what the future holds,” Saha said, “But I think we will start to see more consolidation.” And with more consolidation, the pressure goes up on suppliers, Saha noted. “When consolidation happens in the market, I think the biggest challenges faced by suppliers because they feel pressure to keep their costs low and there's more bargaining power,” Saha observed. “I think within Canada, there was slightly more bargaining power in the market for suppliers. But if consolidation starts to keep pace at this way, then that could be an issue for some suppliers down the road.”

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SUPPLIER STRATEGY

Selling on all platforms

Scan the QR code for the latest and more in-depth news online.

Rather than attracting customers to your preferred selling platforms, you should be where they are instead // By Adam Malik

here’s a famous quote by Wayne Gretzky about skating to where the puck is going to be instead of where it is. The aftermarket could heed those words when it comes to selling auto parts. Whether customers are searching high and low for hardto-find parts or just need something simple, they know where they’re going to buy the part from before they even turn on their computer or pull out their phone. And it can often be one of the online retail giants like Amazon. But if you’re not on that platform, how can you expect to sell your products? Hearing Johannes Crepon, CEO and co-founder of PDM Automotive, describe things, that Gretzky quote comes to mind. For Crepon, suppliers need to be where the customers are, not where suppliers want customers to be. “You can’t win every customer and redirect every customer, potentially, to a specific channel where you want them to be, but you got to be present at the specific channel where they are shopping,” he said during the panel discussion, Scaling a Successful Omnichannel Strategy for the Automotive Aftermarket. “So it’s not so much about re-educating or re-steering the customer, it’s

more about making sure that wherever your customer base is, that your brand is presented there.” It may be less of a focus to generate sales but at least be represented so customers see that you’re there, Crepon added. It’s more prevalent on the accessories side but there are parts that customers just won’t think about going to their local auto parts store’s website to get — their first instinct is to check Amazon. If you sell that part but you’re not on Amazon, someone else surely is. “So that’s how I consider that omnichannel discussion,” Crepon said. “It’s understanding: What are the channels that my customers are at [and] less about, ‘Hey, this is a channel that I want my customers to get to.’” Don’t forget to have good, clean data, Juan Jacinto, senior channel account manager of agency partnerships at BigCommerce, reminded. “From a cataloguing strategy, in my opinion, it’s most important to start very rich, very clean,” he said. “And then for each channel, there is a best practice as to how to communicate that content into that specific channel.”

JAMES HINCHCLIFFE Canadian IndyCar Driver and 6 time race winner

FOR QUALITY THE PROS COUNT ON,

James Hinchcliffe trusts in PRO-SERIES

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BAYWATCH

TAKE A LOOK AT THE NEWEST PRODUCTS

TIRE CHANGERS

The Coats Company has introduced the Maxx Tire Changer line. It has three models: the Maxx 70, 80 and 90. Key features of the Coats Maxx Tire Changer series include flexible power options for multiple shop setups from a 110V or air to 220V, a two-speed option to combine precision and speed, a dual nozzle inflation system that seals difficult assemblies with ease, the ability to accommodate bigger, heavier wheel assemblies, from six- to 30inch clamping capacity and more. www.coatscompany.com

BORESCOPE

Milwaukee Tool launched M12 Auto Technician Borescope, it’s first diagnosis tool. It provides 5mm of access with a high-definition front and side cameras and 4.3-inch display for enhanced viewing and easier diagnosis. It has four zoom levels. The three-foot flexible cable helps manoeuvre through confined spaces. It guards against failure with its Heat Sense Temperature Alert technology. The tool notifies the user and shuts down if the vehicle being inspected is too hot to use the camera without potential damage. It is on the M12 battery platform. www.milwaukeetool.ca

DUAL-CLUTCH TRANSMISSION OIL

With two-thirds of vehicles equipped with automatic transmission or automated manual transmission, Liqui Moly has developed the Dual Clutch Gear Oil 8100. The product’s range is being expanded and can be used in almost all wet dualclutch transmissions. The oil can be used in more than 90 percent of vehicles with wet-running dualclutch transmissions on the European automotive market. The composition of shear-stable viscosity index improvers, wear protection additives and constantly hard-wearing friction modifiers ensures shifting under all conditions. www.liqui-moly.com

STEEL JACKS

OTC has released the S012, 12-Ton Steel Jack Stands which come with increased strength and safety in vehicle holding. The stands are universal for most vehicles and ideal for midsize, heavy-duty vehicles. The S012 stands are formed and welded with a steel base, including a steel support column featuring 12 locking positions for versatility and increased holding strength. The form-fit, flat-top horseshoe style saddle design and wide steel base ensures stability. Welded foot pads resist sinking into soft ground or asphalt, while the durable baked-enamel finish resists corrosion.

BRAKE, LIFT SUPPORT OPTIONS

ZF Aftermarket added 74 new products to its branded portfolios in August 2023 for Canada and the U.S. The company introduced 22 different part numbers for TRW brake pad sets, adding availability to more than 9.7 million more vehicles in operation. Its aftermarket offerings for TRW X-Tend powered lift supports were also expanded, adding 49 new part numbers for a range of vehicle brands. Additional products launched in August include SACHS clutch replacement parts for the Audi A4 Ultra Sport 2.0L and a clutch kit for the Smart Fortwo 2016-2017 Turbocharged. www.zf.com

SEVERE-DUTY GASKETS

Dana has introduced a new line of Victor Reinz Victor-Lock reusable differential gaskets designed for severe-duty applications. The gaskets feature resilient FoamFlex facing material bonded to a steel core with selective silicone beading to enhance sealing stress and improve loading in critical areas for an ultimate, leak-free seal. The reusable differential gaskets are manufactured with FoamFlex material on both sides of the gasket to provide a level of compression and recovery while the steel core provides strength. No room-temperature vulcanizing (RTV) silicone is needed so there is an instant seal and service technicians do not have to wait for reassembly. victorreinz.us

www.OTCTools.com w w w. a u t o s e r v i c e w o r l d . c o m

J A N U A R Y / FEBRUARY 2 0 2 4

BAYWATCH BOTTLE JACKS CAR CARE PRODUCTS

Liqui Moly now wants to be the top name in the car care products game. The company is focusing the relaunch on its Gloss Polish, Polish & Wax and Hard Wax products. The company said users will notice added emphasis on water running off better. Packaging has also been refreshed. Gray containers are being replaced by transparent blue ones. Spray bottles and caps have also been improved for better application.

OTC announced the release of two heavyduty bottle jacks suitable for up to 12 and 30-ton capacities. The bottle jacks were designed to provide high-quality lifting power while being compact enough to be used on the road, on the job site or inside the repair shop. Key features include 12 and 30-ton capacities designed using durable, high-quality materials; a chromed pump piston and ram to increase rut resistance and extend the life of the product; meeting or exceeding the newest ASME PASE-2019 safety standards. www.OTCTools.com

www.liqui-moly.com

BRACKETLESS CRATE AXELS

JobberNews @Autoserviceworld

Dana Incorporated announced the addition of Ultimate Dana 80 bracketless crate axles that allow for easy installation on virtually any application. The axles have ultrastrong four-inch tubes with 5/8-inch wall thickness and Spicer 40 spline nickel chromoly steel axle shafts. They also include Spicer performance ring and pinion gears in ratio 3.73 through 5.38. The axles also include an ARB Air Locker, heavy-duty wheel bolt pattern (8 x 6.5 inches), Spicer 1410 strap-style/half-round end yokes and a 69-inch width wheel mount surface-towheel mount surface. www.danaaftermarket.com

J A N U A R Y / FEBRUARY 2 0 2 4

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EPB CALIPERS

Continental expanded ATE Electronic Parking Brake (EPB) Caliper options for European makes. The 10 new parts provide coverage for more than five million vehicles in operation, including models on the job site or inside the repair shop. Key features include 12 and 30-ton capacities designed using durable, high-quality materials; a chromed pump piston and ram to increase rut resistance and extend the life of the product; meeting or exceeding the newest ASME PASE2019 safety standards.

WIRELESS INDUCTIVE CHARGING KIT

K-Tool International has added a wireless inductive charging kit (KTIXD5532KIT3) for auto professionals. The kit includes a dual pad wireless inductive charging base, 650 lumen chip-on board (COB) wireless inductive charging work light and 650 lumen COB wireless inductive charging swivel work light. The wireless charge base charges two devices simultaneously and works in conjunction with the two work lights, and any Qi-compatible devices. Users can use one light while recharging backup lights. The charging base can be mounted magnetically to any ferrous metal surface horizontally or vertically. https://www.toolweb.com/brands/k-tool-international.html

www.OTCTools.com

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PROTECTION THAT STICKS

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w w w. a u t o s e r v i c e w o r l d . c o m

J A N U A R Y / FEBRUARY 2 0 2 4

CAR-TOONS

BAYWATCH BRACKETLESS CRATE AXELS

Dana Incorporated announced the addition of Ultimate Dana 80 bracketless crate axles that allow for easy installation on virtually any application. The axles have ultra-strong four-inch tubes with 5/8-inch wall thickness and Spicer 40 spline nickel chromoly steel axle shafts. They also include Spicer performance ring and pinion gears in ratio 3.73 through 5.38. The axles also include an ARB Air Locker, heavy-duty wheel bolt pattern (8 x 6.5 inches), Spicer 1410 strap-style/ half-round end yokes and a 69-inch width wheel mount surface-to-wheel mount surface. www.danaaftermarket.com

J A N U A R Y / FEBRUARY 2 0 2 4

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DUAL-CLUTCH TRANSMISSION OIL

With two-thirds of vehicles equipped with automatic transmission or automated manual transmission, Liqui Moly has developed the Dual Clutch Gear Oil 8100. The product’s range is being expanded and can be used in almost all wet dual-clutch transmissions. The oil can be used in more than 90 percent of vehicles with wet-running dual-clutch transmissions on the European automotive market. The composition of shear-stable viscosity index improvers, wear protection additives and constantly hard-wearing friction modifiers ensures shifting under all conditions. www.liqui-moly.com

When it comes to dependability, we’re pulling out all the stops. O.E.-backed, vibration eliminating and ultra-quiet. Give your customers clean, ultra-quiet braking, with reduced vibration and runout values, precise tolerance and perfect balance. bproauto® brake rotors are independently tested to meet or exceed SAE standards to ensure the highest quality. Backed by our 24 months/unlimited kilometres warranty and available for most makes and models.

Over 40 part types. Over 20,000 part numbers.

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