Jobber News July/August 2023

Page 11

Serving the Automotive Aftermarket Since 1931 JULY / AUGUST 2023  GENERATIVE AI’S AFTERMARKET ROLE  BOOMERANG EMPLOYEES TO THE RESCUE? Canada Post Canadian Publications Mail Sales Agreement No. 43734062 Turnkey Media Solutions Inc. 48 Lumsden Crescent, Whitby, Ontario, Canada L1R 1G5 Distributor leaders push for better information Where’s the parts data?

Franchise Opportunity available, email Sales@hotspotautoparts.com

Brake Rotors and Drums

Brake Pads and Shoes

Brake Calipers

Hub Bearings

CV Axles

Chassis Parts

Complete Strut Assembly

Shock Absorbers

Strut mounts

Radiators

Water Pumps

Steering Pumps and Racks and Pinions

Steering Gears

Starters and Alternators

Batteries

Oil Pans

Fuel Pumps

Wiper Blades

Ignition Parts and Coils

Fuel lines

Exhaust Parts, Universal Converter, and Flex Pipes

Misc Automotive Parts HOTSPOT AUTO PARTS 939 Warden Ave Scarborough ON M1L 4C5 Info@hotspotAutoparts.com | www.hotspotautoparts.com

EXCLUSIVE DISTRIBUTOR
An Automotive Warehouse Distributor

MANAGEMENT

Boomerang Employees

Amid a talent crunch, what about courting back an ex-employee? How to bring them back if they didn’t find the grass greener…

New Risks

www. autoserviceworld .com JULY / AUGUST 2023 3 INDUSTRY INSIGHTS
Three leading aftermarket experts from three different sectors weigh in on what should be on the minds of aftermarket leaders CONTENTS July / August 2023 • Volume 90, No. 4 Columns Service Notes How much do consumers know about you? 5 Departments Letters News By the numbers On The Road YPA Spotlight Baywatch Car-Toons 6 7 13 11, 12 26 27 30 14 Features
COVER FEATURE Data Underload Distributors say suppliers are being ‘woefully inadequate’ in sharing parts data. Here’s why they need it and how vendors can help. 16 JobberNews Business Perspective Generative AI in Aftermarket: Disruptor or Dud? 14 22 24

TURNKEY MEDIA LAUNCHED A BRAND-NEW QUARTERLY MAGAZINE FOR AUTO SERVICE PROFESSIONALS:

EV World focuses on:

• Technical articles, how-to guides

• Newest government and private sector news

• New product alerts

• Vehicle innovations, and what’s coming to your shop

• Consumer habits and what to expect from your customers

• And much more!

NAME:

COMPANY:

ADDRESS:

EMAIL:

PHONE:

RETURN MAIL TO: DELON RASHID 48 LUMSDEN CRES. WHITBY ON L1R 1G5
Subscribe using the QR code

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 | Kumar Saha

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.

HOW MUCH DO CONSUMERS KNOW ABOUT YOU?

So it seems a nerve has been touched.

In my March editorial, I noted my friend Jack’s shop experience and how great it was. That is, until a mistake by the jobber tarnished it all. To sum it up, his under-warranty car battery died, the shop ordered the replacement — the correct item, as shown on the order form — and the jobber delivered the wrong one. Jack spent twice as long waiting to be sent on his way.

Some took an issue with how the jobber was depicted. You can read responses on the Letters page. And it’s fine to take issue; I welcome all feedback. Some saw the depiction as overly negative. However, the tone only reflected the customer’s frustration.

There was a common thread with some comments. The short of it: Jobbers are almost infallible. If there’s a mistake, it’s usually always, almost certainly, the shop’s fault. A veteran jobber can count on one hand how many times their team made a mistake.

From the outside looking in, that’s some level of confidence. I’ll have to take your word for it. But it feels a little hard to believe such a high success rate when some jobbers are still using paper and pen to complete orders while others are digital.

But this isn’t a space to bash jobbers. We all know how much work goes into running a business, especially those that have been churning out the business they have over the last few years. There should be more praise than not when talking about the work being done.

I want to point to comments from Zara Wishloff of APD. He didn’t make excuses; he acknowledged mistakes happen. Then he focused on the positives: Quick delivery, no passing on of delivery charges, fast service — all things other industries would be jealous of having.

Read his letter. It’s an important message for the aftermarket to remember — there are things being done here that wouldn’t get a sniff elsewhere. These efforts are deserving of recognition.

Here’s the rub: Does the consumer know? Do they care? Remember, the customer was put off by the experience. They don’t care that the jobber was perfect 95 times prior, the shop didn’t pay for delivery (twice), the jobber made no money because it was a warranty item and getting out in two hours should be considered a great experience.

What Jack cared about was that a mistake was made. To reiterate, he’s over the moon with the service the shop provided. He doesn’t know what a jobber is — he just knows they messed up.

As the saying goes, there’s opportunity in every crisis. This is far from a crisis but there is still opportunity.

Jobbers know how good of a job they’re doing. But consumers don’t. There’s the opportunity: To showcase how strong, how customerfocused and reliable the industry is to ensure top-level upkeep of their significant investment. Education of the customer, in other words.

Now, the challenge: How do we get this message out?

President & Managing Partner | Delon Rashid Head of Sales & Managing Partner | Peter Bulmer

Corporate Office 48 Lumsden Crescent, Whitby, ON, L1R 1G5

www. autoserviceworld .com JULY / AUGUST 2023 5 SERVICE NOTE
me know what you think. You can reach me at adam@turnkey.media
ISSN 0021-7050 Online 1923-3477
Adam
Let
FOUNDED 1931

LETTERS What’s on your mind?

We want to hear from you about anything you read in Jobber News magazine. Send your email to adam@turnkey.media

HOW THE JOBBER RUINED A CUSTOMER’S SHOP EXPERIENCE EDITORIAL, JOBBER NEWS, APRIL 2023

As an owner of two jobber stores, I take offence to this characterization of us as to blame. In my experience the ASP or client is to blame in all but a handful of instances of incorrect parts being sent. As a Jobber of 55 years, we offer training as well as multiple checks through the picking process.

There are many instances where the jobber has been accused of being the one at fault (not so) and we see it every day in our store. In the age of electronic information, we find very often, that a slip of the tongue or wrong information from the customer has our people searching in the wrong direction, only to take the blame when it goes south.

I’m not saying this was the case in this instance, but for sure, many times it is indeed the case.

Lots of customers still think that “all Chev trucks are the same”, or “every Ford car should have the same belt,” without realizing that this is certainly not the case. In the case of “batteries”, often there are indeed several battery group options for a certain model of car, depending on the electronic options that the car was built with. The more options, the bigger the battery group.

With the implementation of parts lookup sites everywhere, customers are often trying to order the correct part, for instance on Amazon, without knowing what they really need. Then they try and return it to the jobber or exchange it for the right one.

I suspect that a lot of jobbers are trying their very best, against unprecedented online competition, and unprecedented amounts of customers trying to find their own stuff. Auto parts is a very tough market these days.

Please do not be so quick to blame the Jobber, in national print. There are lots of other factors in play.

It's nice to see that there is great service given by quality ASPs. As for the wrong battery being delivered to the ASP, nine times out of 10 the proper information isn't given by the ASP or the proper questions aren't asked by the jobber store. ASPs that aren't utilizing the electronic catalogue and ordered online, is because they know how hard it is to get the proper part without answering the questions in the look-up. Sadly, ASP's have been using the jobber store as an excuse for many, many years.

I read this article and wonder if we ever pause and look at the big picture. Mistakes happen everywhere. No one is immune, we are

human. But it sounds like every step was taken to fix an error by the business mentioned.

I keyed in on the 40-minute delivery. Impressive. The jobber probably had four staff touchpoints and incurred the expense of delivery (I am confident they didn’t pass on delivery charges). Sounds like there is some commitment there not being valued. What other trade would get that service? I’ve seen plumbers leave to go get parts, electricians stop their jobs to get parts, and long delays when parts were wrong.

Outside of the industry, I’ve been a customer paying crazy fees for delivery — and I’ve been a customer waiting for windows of time for deliveries on items I’ve paid for. When I’ve received wrong items, I have waited days if not weeks to get it rectified.

Unless you are dealing with an incompetent jobber, I am assuming this is an under 5% occurrence.

While you blame a jobber for “ruining” your customer’s experience, what credit did you give them for overservicing the business on the other 95 batteries you sold this winter? That business partner delivered a battery twice (to fix their mistake) on a warranty item that they are not making any money on! Read that again. The jobber offered free delivery twice on a no-charge item. The customer had car repaired within two hours and yet there are complaints and negativity?

There is division everywhere we look. I would hate to see it creep into our industry. I am happy that a majority of my clients see us as a helping partner and go out of our way to help enhance their customer’s experience. While I don’t dismiss that accuracy is vital in our industry, the tone of this article is very disappointing. Kudos to the jobber for having the investment and infrastructure to get the right part to the ASP and allowing them to have a car repaired same day (in fact within two hours). Those are numbers other industries would be jealous of.

A CUSTOMER PERSPECTIVE ON SERVICE

I am forced to try and attempt my own repairs because of the treatment I receive at repair shops. Some outfits can't/won't do diagnostics and simply throw parts at vehicles "hoping" to get results. I may as well do that myself. Every time I take my import car to the dealership, the invoice was $1,500-$4,000. The last time it was there, I got a list of urgent items needing to be completed — that was 100,000 km ago and I still haven't had to do a few of those jobs. Of course, this all happens at the car owner’s expense, likely $150/hour. Certainly, I have had a couple of repair disasters at my own hands but I am most definitely thousands, if not tens of thousands of dollars ahead in vehicle repair costs.

6 JULY / AUGUST 2023 www. autoserviceworld .com

QUEBEC COULD BE FIRST WITH RIGHT TO REPAIR LEGISLATION

A NEW RIGHT TO repair bill tabled in Quebec would make it the first province and one of a few jurisdictions in North America that protects the consumer’s right to choose where to have their vehicle repaired.

If passed, Bill 29, An Act to protect consumers from planned obsolescence and to promote the durability, repairability and maintenance of goods, would give Quebec vehicle owners protections by being able to choose the vehicle repair facility of their choice. It would also force manufacturers to repair certain goods at “a reasonable price” to avoid having the consumer discard them entirely.

The bill would also mandate consumers who purchase a vehicle be entitled to an inspection free of charge before the end of the lease.

Justice Minister Simon Jolin-Barrette introduced the bill.

“The bill fills a significant gap that has emerged in the industry in recent years with the arrival on our roads of a new generation of intelligent and electric vehicles,” said a statement from AIA Canada in response to the tabling of the bill.

“With Bill 29, Québec will be a winner on all fronts: in addition to effectively fighting against planned obsolescence and encouraging the repair of automotive property, it will ensure a plurality of services and freedom of choice for Québec consumers as well as the promotion of healthy competition and competitive prices in the auto repair market,” said AIA Canada president J.F. Champagne.

NEW INDUSTRY TRAINING PROGRAM

THE AUTOMOTIVE INDUSTRIES ASSOCIATION of Canada has partnered with the Government of Ontario, St. Lawrence College, Conestoga College, Fanshawe College and Plug ‘N Drive to deliver on two challenges facing Ontario’s auto care industry: A

shortage of automotive tradespeople and the need for automotive tradespeople to be upskilled to be able to service technologically-advanced modern cars, including electric vehicles.

The partnership falls under the third round of the Ontario Skills Development Fund. It will build on the success of round two while being expanded to include new partners, new training locations and a new curriculum.

The project will centre around two training programs. One will focus on an EV, hybrid, and advanced driver assistance systems (ADAS) training program. The module-based program will provide employers with free training in modern vehicle technologies to offer workers. It is also open to highlevel apprentices, the industry’s future workforce.

The second component will explore the automotive trades training program, open to job seekers without cost, and breaks the stigma by exposing participants to how technology has changed the type of work automotive tradespeople take on. When finished, participants can find an employer sponsor to pursue an apprenticeship.

“Getting working automotive tradespeople the skills that they need and getting more people into the automotive trades is essential,” said Jean-François Champagne, AIA Canada president, in a statement. “Without, car owners across Ontario, particularly those in small and remote communities, will have less access to, and will pay more for, essential auto care.”

H54K’S CHAIRMAN’S CHALLENGE IS BACK

AFTER RAISING $24,000 last year through corporate and personal donations, the AIA High Fives for Kids Foundation’s Chairman’s Challenge is back.

www. autoserviceworld .com JULY / AUGUST 2023 7 NEWS
Worldpac, Carquest Grand Opening Carquest and Worldpac opened their combined distribution centre on May 6. The 580,000-square-foot facility in Bolton, Ontario can house 350,000 automotive parts. More than 130 Carquest stores and Worldpac branches from central to eastern Canada will be served by the new DC. Scan the QR code to see the highlight reel on Instagram.

In all, $26,500 of funding was raised for children and youth charities across the country. Last year’s recipients included the YWCA – Edmonton, The Children’s Breakfast Clubs (Ontario), the Child and Family Services of Western Manitoba, the YWCA of Calgary, the Kerr Street Community Services (Oakville, Ontario) and the Junior Achievement of Northern Alberta.

Another $15,000 was contributed to students attending Canadian post-secondary institutions through the educational scholarship program.

“I hope that the success of our charitable and scholarship programs will inspire you to contribute to this year’s Chairman’s Challenge,” said a letter to AIA Canada members from foundation chairman Ray Proulx. “When planning your charitable giving for 2023, please help the AIA High Fives for Kids Foundation continue to make a difference in the lives of children and youths.”

INDUSTRY RETAIL SALES RECOUP LOSSES

THE SIZE OF THE CANADIAN automotive parts and service aftermarket has just about recovered from pandemic losses, a new report shows.

The 2024 Auto Care Association Facebook reported that after suffering a 6.1 per cent loss in 2020, gains in the last two years have brought the aftermarket back to where it was in 2019.

The report further noted that while the number of wholesalers have declined, parts and accessories retailers and vehicle repair shops have increased year-over-year.

Included in the report was the 2023 Joint Channel Forecast Model report, which provides insights and guidance for the

industry. It shows the automotive aftermarket growing faster than expectations — with continued strong growth to come.

Against a forecast of 8.5 per cent, the Auto Care Association and MEMA Aftermarket Suppliers, in partnership with S&P Global, reported growth of 9.7 per cent in 2022.

“This year's report finds that despite the recent increase in economic strain for many Americans due to rising costs, the industry continues to show its reliability and ability to adapt across the service and retail sectors, continually adjusting to meet demand in an ever-dynamic market,” the announcement from the Auto Care Association said.

AAPEX KEYNOTE GETS SOME MAGIC

EARVIN “MAGIC” JOHNSON will deliver the keynote at AAPEX this fall.

Perhaps the greatest point guard in professional basketball history will be in Las Vegas on October 31 this year to speak to attendees about “The Magic of Winning” and the real-life story of his remarkable rise, his philosophy for success and an empowering message on how to create the best possible future, said an announcement from show organizers.

Johnson grew up in an automotive family in East Lansing, Michigan. His father worked in a General Motors plant.

Johnson has pursued several successful business ventures. Today, he is a renowned entrepreneur, owning multiple businesses in sectors such as entertainment, sports, and real estate. He has also been involved in philanthropy and has made significant contributions to various charitable causes.

U.S. AVERAGE VEHICLE AGE AT A NEW HIGH

THE LATEST ANALYSIS from S&P Global Mobility pegs the average age of a U.S. vehicle at 12.5 years. A combination of high new vehicle prices and the lack of new sales has pushed people to keep their older vehicles long, driving up the average age of the nation’s car parc.

The number is a three-month increase from last year, according to S&P and the sixth straight year of an increase. It’s also the highest yearly increase since the 2008-2009 recession when, similarly, a sharp decline in new vehicle sales accelerated average age beyond its traditional rate.

“We expected the confluence of factors impacting the fleet coming out of 2021 would provide further upward pressure on average vehicle age,” said Todd Campau, associate director of aftermarket solutions for S&P Global Mobility. “But the pressure was amplified in the back half of 2022 as

8 JULY / AUGUST 2023 www. autoserviceworld .com NEWS
HDAP Trade Show Hamilton Discount Auto Parts hosted its annual trade show at Michaelangelo’s Banquet Centre in Hamilton, Ontario. Attendees checked out offerings from dozens of vendors. Scan the QR code to see the highlight reel on Instagram.

interest rates and inflation began to take their toll.”

This, of course, is all good news for the automotive aftermarket. So many older vehicles in operation mean these automobiles will continue to need repair work and service to perform properly.

“The aftermarket sector trajectory typically follows growth in average vehicle age, as consumers invest more to keep their aging vehicles running, barring some exceptions,” the report from S&P said.

The aftermarket sweet spot is also growing.

“Traditionally, the ‘sweet spot’ for aftermarket repair was considered 6-11 years of age, but with average age at 12.5 years, the sweet spot for aftermarket repair is growing,” Campau said. “There are almost 122 million vehicles in operation over 12 years old.”

CAR PRICES SPIKE IN 2022

THE AVERAGE LIGHT truck cost $51,700 in 2022, according to data from DesRosiers Automotive Consultants. That’s a jump of $5,000 — a nearly 10 per cent jump. It’s also the first time that light trucks surpassed the $50,000 price point.

Passenger cars came in at $41,800 on average. Light trucks accounted for 84 per cent of light vehicle sales in 2022. That brings the average transaction price to $49,900.

“The cost of purchasing a new vehicle increased sharply in 2022 driven primarily by semiconductor-related vehicle shortages,” said Andrew King, managing partner at DesRosiers. “With interest rates also climbing, affordability may create a noticeable headwind in the market, damping down the considerable pent-up demand that still exists.”

FRISBY TIRE ACQUIRED BY KAL TIRE

KAL TIRE ANNOUNCED it has acquired Ottawa’s Frisby Tire, one of the oldest independently-owned tire dealers in Canada.

The deal closed on May 27. Kal Tire will operate Frisby Tire’s five retail and commercial stores. Kal Tire’s subsidiary, Total Tire Distributors, will acquire Frisby’s existing wholesale operations.

Frisby Tire dates back to 1920. Don Frisby became the thirdgeneration leader of the business in 1995.

“It’s always been so important to us that our customers are happy with their experience, and we feel very fortunate to know that will only continue with Kal Tire’s culture of service-oriented values,” said Frisby. “Some of our technicians have worked here their whole lives. We’ve built this legacy together and I know they’re all in the very best hands.”

The 52-member team of Frisby Tire will join Kal Tire as the company operates Frisby Tire stores on Industrial Avenue,

NAMES IN THE NEWS

Engine Rebuilders Inc. has named Bill Hay as its president. He took over the role on July 4. Hay was most recently president of Bestbuy Distributors.

KYB Americas Corporation announced the appointment of Andy Castleman as director of product and marketing.

Guna Sathyamurthy has been promoted to product manager for the U.S. and Canada at KYB Americas. He has been with KYB since coming out of college.

Tom Amero has been appointed director of operations at Elite Worldwide, a training, coaching and consulting company for shop owners and managers.

Somerset Street West, Queensdale Avenue, Clyde Avenue and Hazeldean Road in Ottawa.

Frisby Tire’s warehouse and wholesale distribution facility at Humber Place in Ottawa and 26 team members will be operated by the Total Tire team.

CANADIANS RETHINKING ROAD TRIPS

THE TIRE AND RUBBER ASSOCIATION OF CANADA has found higher costs all around have forced Canadians to rethink their summer plans.

Two-thirds of drivers told the survey that financial pressures would likely push them to keep their car parked entirely or limit road trips this summer. Those numbers spike when looking at younger drivers — 73 per cent of those aged 18-34 and 72 per cent aged 35-54 said a summer road trip is off the books or will be limited.

“Our survey exposes the extent of harsh financial stresses impacting Canadian motorists and the need for more education on how to gain optimal fuel efficiency from tires,” says Carol Hochu, president of TRAC.

JNPSOFT OPTICAT, MEMA PARTNER UP

A NEW STRATEGIC partnership between JNPSoft OptiCat and MEMA Aftermarket Suppliers will offer value-added benefits. MEMA will offer unique incentives on JNPSoft OptiCat licensed products, access to resources and trade information for new members of its aftermarket suppliers group.

Both MEMA and JNPSoft OptiCat noted in the

www. autoserviceworld .com JULY / AUGUST 2023 9

announcement that they aim to improve the flow of information available and provide effective solutions to the heavyduty industry.

JNPSoft OptiCat will provide discounts on subscription products and consulting services to commercial vehicle suppliers as an immediate benefit.

U.S., CANADA, TEAM

UP ON EV CHARGING CORRIDOR

A 1,400-KM CORRIDOR for electric vehicle charging stations is set to be built from Michigan and stretch into Quebec.

The joint binational alternative fuel corridor agreement was announced by federal Minister of Transport

Omar Alghabra and U.S. Secretary of Transportation Pete Buttigieg. It will see EV charging stations every 80 kilometres along highways from Kalamazoo, Michigan to Quebec City.

Each station along the corridor — covering the I-94 through the DetroitWindsor border tunnel, Highway 401 across southern Ontario, Highway 20 through Montreal and Highway 40 through to Quebec City — will be required to have at least one direct current (DC) fast charger along with combined charging system (CCS) ports.

There will be 61 stations between Detroit and Toronto and 154 between Toronto and Quebec City.

DEALERS STRUGGLING WITH EMPTY LOTS

DESPITE SUPPLY CHAIN issue easing, new vehicle dealers are still far off from their typical levels, according to

DesRosiers Automotive Consultants. And how severe the problem is depends on where you are in the country.

Shortages of new vehicles stemming from semiconductor issues continue to plague dealers — to the tune of inventory levels still being at 42 per cent of the normal in the first quarter of this year. That, however, is up from less than 20 per cent of normal levels from last year.

DesRosiers asked Canadian Automotive Dealers Association members about their situation. It found the level of recovery hasn’t been spread evenly.

On one end, Ontario is at 67 per cent of normal levels. On the other, Manitoba and Saskatchewan are at 30 per cent.

The consultancy noted that “the recovery in new vehicle supply remains uneven and unequal across the automotive market at the model, brand, and regional level.”

VCC IS ASE CERTIFIED

VANCOUVER COMMUNITY College’s Automotive Service Technician program has been certified by the ASE Education Foundation.

It is now an internationally accredited training program and is the first and only Canadian institution and school outside the United States to receive ASE accreditation.

“The Automotive Service department worked closely with the ASE to complete stringent program evaluations,” Michael Coard, department head of the school’s Automotive Service, said in a statement. “I’m pleased to see our commitment to quality training and education has resulted in this important achievement. The accreditation means better automotive technicians will join the workforce, which benefits vehicle owners.”

Students enrolling in VCC’s program will see strict industry standards but then earn a nationally and internationally recognized trade certificate.

“This is great news for automotive-minded young people and their parents,” said Michael Coley, president of the ASE Education Foundation. “Because this program increases cooperation between local education and industry leaders, it gives added assurance that VCC’s graduates will be employable entry-level technicians.”

10 JULY / AUGUST 2023 www. autoserviceworld .com
NEWS

On the Road

AIA Canada National Conference

April 25-26

Toronto, Ontario

See the event reel on Instagram

The Automotive Industries Association of Canada's National Conference featured panel discussions with AIA Canada’s leadership team as well as industry leaders. Concurrent sessions were held under three umbrella themes: Women in the Aftermarket, Young Professionals in the Aftermarket and Market research and data. Attendees heard from an auto retail expert from Google Canada as well as a global thought leader. Brad Shaddick was presented the Distinguished Service Award. Brad Cochrane was named the Young Leader of the Year. The night before, attendees networked during a welcome reception.

Members of the YPA committee with speaker Jacki Lutz Brad Shaddick, Distinguished Service Award winner Mathew Growden, Google Canada Patrick Verriet of the YPA Committee and Brad Cochrane, Young Leader of the Year winner AIA Canada’s J.F. Champage, Mauro Cifelli, Groupe Del Vasto and Jasna Smiljcic, Gates Canada J.D. Power’s J.D. Ney
www. autoserviceworld .com JULY / AUGUST 2023 11
Global thought leader Andrew Au

On the Road

Bestbuy Gala Dinner & Warehouse Trade Event

May 5-6

Toronto, Ontario See

Bestbuy Distributors annual Gala Dinner and Warehouse Trade Event was marked by the 70th anniversary of the company. As usual, Bestbuy presented a cheque to Toronto’s The Hospital for Sick Children (commonly referred to as SickKids) for $15,775. Bestbuy recognized milestone members and handed out partner awards. Then, it hosted its trade event the next day for members to meet with vendors at its warehouse in Mississauga

the
on
event reel
Instagram
Bosch won the Cornerstone Award BBB Industries won the Marketing Partner Award Bestbuy donated $15,577 for SickKids Hospital in Toronto. The Horace J. Pratt 2022 Vendor of the Year Vendor of the Year went to Dorman Products
12 JULY / AUGUST 2023 www. autoserviceworld .com
Mevotech shared the Partner Award Promax shared the Partner Award The Rising Star Award went to Liqui Moly

Stats that put the North American automotive aftermarket into perspective

10.5% 59%

An analysis of the automotive industry found that the aftermarket saw sales jump despite “somewhat modest growth” to start the year.

DesRosiers Automotive Consultants

A majority of Canadians said that increased prices will delay their vehicle purchase. Of those, 44% said they’ll delay at least a year; 28% say two years.

Canadian Black Book

96%

Vehicle sit idle for the vast majority of the year despite Canadians paying $5,000 a year to have the vehicle.

Turo

$100.84

It cost Canadians nearly 11 per cent more on average to fill up their gas tank as gas prices in 2022 compared to 2021 when it cost an average of $90.90.

12.5

Average age of light vehicles in the United States hit a record high. It’s the sixth straight year that number has gone up.

33%

Financial pressures will likely push Canadians to keep their car parked entirely or limit road trips this summer. Tire

S&P Global Mobility

$51,700

The average light truck cost $5,000 more in 2022 than the year before. A passenger vehicle comes in at $41,800 on average.

DesRosiers Automotive Consultants

www. autoserviceworld .com JULY / AUGUST 2023 13
DriveElectric
ALABAMA GEORGIA ARKANSAS NORTH CAROLINA SOUTH CAROLINA KENTUCKY TENNESSEE GREENLAND MISSOURI VIRGINIA FLORIDA QUÉBEC CITY KALAMAZOO
and Rubber Association of Canada An EV charging station corridor will see stations every 80 kilometres along highways from Kalamazoo, Michigan to Quebec City. Government of Canada
1,400km

GENERATIVE AI IN THE AFTERMARKET: DISRUPTOR OR DUD?

There are some immediate use cases for tools such as ChatGPT, but do not hold your breath for a revolution any time soon

Full disclosure: This article has been written in collaboration with ChatGPT — but not by ChatGPT!

Even since ChatGPT renewed the frenzy around artificial intelligence (AI) following its release to the public last November, I have been spending some time with the Microsoft-buoyed tool with various aftermarketrelated queries. (I am assuming that you have heard about the technology giant’s $10-billion investment into the generative AI software by now).

I have queried ChatGPT about common trouble codes, step-by-step instructions on resolving certain trouble codes, brand information for replacing various part types — and yes, even asked about its own use cases for the aftermarket.

The results varied from highly specific to uselessly generic. For instance, it showed detailed information about how to diagnose and troubleshoot a specific trouble code on a 2015 Ford F-150. It could name the best brands for replacement brake pads — with helpful descriptions — on a late-model Audi A4. On the flipside, it came up empty when asked to produce cross-references for part numbers.

Agreed, the last example may be too specific. But the essence of the aftermarket lies in its product complexity. E-commerce, while extremely successful in other industries, keeps stumbling on the auto parts hill. ChatGPT, as it stands today, may only be demonstrative.

But its ultimate success in the aftermarket will depend on how well it can navigate the intricacies of vehicles, parts, catalogues and repair content.

Can AI tools recommend the right part with over 95% accuracy (in an industry where one out of every five parts is returned to the seller) to a consumer or technician?

Can it consistently hit the mark on parts and inventory demands? I doubt it — and definitely not anytime soon.

The fault may not lie entirely with the technology. Data in the aftermarket continues to remain spotty, which will ultimately influence how these tools get trained. I think the real AI breakthrough for the parts industry will be in the radical improvement of data through suggestive and predictive functions. But that will take time — and significant investment. How long is anyone’s guess but I think we will probably see some breakthroughs by the end of the decade.

Till then, generative AI’s influence and contribution to our industry will be additive, not disruptive. Here are some ways generative AI could help the industry:

In the car

Automakers such as General Motors and MercedesBenz have announced plans to bring ChatGPT to their connected vehicle systems. The German automaker will test out the tool first with the hope of improving contextual understanding and output complexity of voice assistants. I guess the initial goal probably doesn’t go

BUSINESS PERSPECTIVE

further than making the process of speaking to your car less frustrating than sitting in Toronto-area traffic.

But it would probably go further down the road, specifically for repair services. Generative AI could help drivers troubleshoot minor issues, eliminating the need for flipping through dense manuals. It could help car owners find the right repair shop and products through an interactive process.

ChatGPT could be a great tool for enthusiasts and tinkerers, helping them take care of some basic installations — almost working as a virtual technician. Depending on how 'right to repair' evolves, these services could open new revenue streams for both OEMs and the aftermarket.

In the store

Let’s face it: Companies have struggled with hiring and training parts store counterpeople, especially post-pandemic. Finding the right people is only going to get tougher. ChatGPT plug-ins for inventory lookup and transaction systems could help employees find the right solutions and products for customers quickly and accurately.

The technology could also help with dynamic scripting for customer support personnel. It could produce live prompts for chats and phone calls, based on what a real customer is saying.

In the shop

Generative AI could contribute the most here, at least in the short term. The most obvious use for a ChatGPT tool would be as a virtual shop assistant. For instance, it could provide step-by-step instructions on complex repairs as a technician is working on them. It could keep installers up to date on the latest repair protocols, squeezing in bite-sized training sessions during down times. Generative AI could pair with other tools such as virtual and augmented reality to provide more immersive lessons.

There are other less obvious applications as well. AI tools could assist shop owners and managers in drafting or automating customer communication. Shops are barely able to keep up with functional outreach such as onboarding or even letting customers know when their vehicle is ready. ChatGPT could help them in being more pro-active, such as documenting a detailed analysis of work done on customer vehicles, writing a welcome or thank you email, or asking them for feedback.

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

TOGETHER LIKE EMPTY PARKING LOTS AND BURNOUTS.
www. autoserviceworld .com JULY / AUGUST 2023 15
Kumar Saha Kumar Saha is Toronto-based vice president (U.S.)/Managing Director (Canada) of global automotive intelligence firm Eucon. He has been advising the North American automotive industry for over a decade and is a frequent conference speaker and media commentator.
Data in the aftermarket continues to remain spotty, which will ultimately influence how these tools get trained

Data

Underload

Suppliers are ‘woefully inadequate’ in providing parts data to distributors, making it more difficult to sell parts in an age where customers are looking for more information

16 JULY / AUGUST 2023 www. autoserviceworld .com COVER FEATURE

We live in the information age. One can learn about almost any subject in the history of mankind. News is available — almost instantly — about what is happening today. Anyone can go online and read prognostications about the future. There are seemingly endless data available about people — our habits, patterns, likes, dislikes and so on. Big data is collecting information about where we go, when we go, how we do things. And that is being fed to companies to tailor products and services to us.

Yet, in the automotive aftermarket, data and information are sorely lacking. Neither are being utilized to their fullest potential, the way industry leaders tell it. Especially when it comes to selling products, it seems many in the industry are missing out on opportunities to draw in customers, showcase products and make the sale.

John Washbish, president and chief executive officer of the Aftermarket Auto Parts Alliance, told attendees of a recent conference a story from a gas symposium way back in 1998 where a marketing expert predicted that data will one day be more important than the part. And we’re at that point now.

“If they don't have the right data to [showcase] what it is, we can't sell it, no matter how good it is,” he said at this year’s MEMA Aftermarket Suppliers Vision Conference. “So the data thing’s really got to get right.”

There’s been a lot of good work in getting data from manufacturers, especially around ACES and PIES, but there is still room for improvement in other areas, Washbish stressed. He pointed to what he called “the romantic” information — beyond the pictures and basic information. It's creating a gap when trying to sell the part. There’s not enough emphasis on making shop customers or DIYers care about what they’re looking at so they, in essence, fall in love with what they’re buying.

“Where we like to look for enhancements is on the marketing end — the romantic data about the part. Pictures of the parts. You know, the romance,” he said at the Chicago event as part of a panel. “You can have a tire pressure gauge and you can have a tire pressure gauge with two paragraphs of explanations and pictures. And they both cost the same — the one that has the two paragraphs [of] explanation is going to sell more.”

It comes down to the suppliers making the move. They need to support their products with further details.

“So the replete data [is what] we're looking for and there's still a lot of vendors that are woefully inadequate in that space,” Washbish observed, adding that it’s an even weaker experience in related sectors. “The basic application stuff and interchange stuff on the automotive side [is] really, really good — heavy duty, a little bit more of a challenge is my experience.”

Randy Buller, president and CEO of Parts Authority and fellow panellist, agreed with Washbish, emphasizing that getting ACES and PIES data from manufacturers has been great at times. Some of them have been helpful — but some haven’t.

“So like a bunch of apples, one or two apples spoil a bunch because you start to see conflicts where there's bad data. Somebody might have a very clean list, and then somebody might have not a clean list,” he said during the session, Future of Aftermarket Distribution.

www. autoserviceworld .com JULY / AUGUST 2023 17

Sometimes, Buller noted, all the information is stuffed into one ‘box.’ Someone would take the time to separate out things properly. But that doesn’t happen all the time.

“You still have weird stuff coming out, and in the wrong places,” he explained. “And that's why our catalogue teams need so many actual people. It does create confusion.”

On the topic of the needed “romance”, Buller observed that some may think the service advisor or technician doesn’t care about that stuff. Maybe they don’t at the end of the day and can get by with the basics — but they do need to know why a particular part is better.

If a company wants to claim their coil is better, explain why, he added. “They need to put that front and center. That's not always on there.”

The aftermarket is in need of efficiency, pointed out Todd Leimenstoll, president and CEO of Auto-Wares. Too often products are returned because the technician thought it’d be the right piece. But if a key piece of data was included, they would have known it would been the wrong one from the start. So better data can eliminate those issues and boost efficiency.

“The more attributes we get in there, the more chance you've got of getting the right part of the customer the first time,” he said on the panel.

That’s not to say things haven’t gotten better. He estimates the last three years have seen dramatic improvements.

“I'd like to get our standardization as an industry cleaned up even more and get so that we're more or less live feeding this information,” he recommended. “Because if we can get it in that position, ultimately, it makes all that inventory available immediately, whether it's from the manufacturer's door, our door, the part store's door and getting that cleaned up. So I think we've made dramatic improvements.”

E-commerce

Having the right data ties into boosting e-commerce. Shops told Jobber News in the Annual Shop Survey that they’re turning more and more to online ordering. A third of respondents said they were putting at least 90 per cent through in this manner. That's up from not even a quarter (24 per cent) last year. About seven in 10 (71 per cent) said at least half of their orders are placed online.

They cited the ease of doing so, not needing to wait to speak to a counterperson and avoiding extraneous questions.

But the process isn’t without its issues. “Some of the online systems are cumbersome, not intuitive, don't have clear parts descriptions, poor sorting options,” one survey respondent explained.

Selling online is advantageous for the distribution side of things as well.

“E-commerce is something that's been around for quite some time, and it's here to stay,” Buller said. “And I think like anything people get used to buying things in different ways. E-commerce certainly provides maybe some financial advantages for people who could wait for their parts. They have to pay freight but they might have a much bigger brand availability.”

With parts proliferation showing no signs of slowing down, an e-commerce platform is a way to service the wide variety of needs

of today’s customers, he added. “So e-commerce is a great way to get that.”

But e-commerce can’t be a full replacement for the distribution segment, Buller pointed out. “On the other hand, if [a customer’s] car is down, we [hear] how important it is to get those parts right away and get the car off the lift.”

It’s just another tool available to jobbers and warehouse distributors to get products from suppliers into the hands of technicians. “I think it's going to continue to grow. But I also

think for the aftermarket distributors, the retailers included, [e-commerce] is a great way to put the products out there,” Buller said.

“The challenge for us is to put the right amount of the products and the correct products in striking distance of the installers in a cost-efficient manner,” he added.

And to ensure accurate information is included, Washbish emphasized. While there has been a good effort in the presentation to the consumer, improvements can still be made on the business customer end.

“A lot of the e-tailing presentation has moved over to make the presentation on business-to-business better than what it used to be,” Washbish said.

“But the game is getting it out there [in] 30 minutes or less by finding the right part. And so I think that all of us from a business-to-business [perspective] and those that are running

18 JULY / AUGUST 2023 www. autoserviceworld .com
"E-commerce certainly provides maybe some financial advantages for people who could wait for their parts. They have to pay freight but they might have a much bigger brand availability."

a business [to] consumer [operation], they've done a better job at the presentation of the parts, showing the availability. That's, as Randy said, when your car's down, I got to get it fixed right now — how fast can that installer get the part? The installer likes to use our business-to-business tools to find the part, find out where we have it and get it ordered.”

And those learnings from the business-to-consumer side have been translating well to the B2B side of things,

Taking learning from the business-to-consumer side and translating them over to the B2B side has been successful, Leimenstoll observed.

“There's been a good crossover between our business-toconsumer — things that we've learned, the information that's required, the data that we feed out and bringing that over to our business-to-business side is really starting to pay off,” he said. “[On] the business-to-business side, we're seeing more clicks, it's going up continuously.”

Leimenstoll described three lanes when it comes to e-tailing. “We start off with the buy-online-pick-up-in-store — there's a very big value in tracking how much of that business shows up in your stores. They're out looking — they're just checking to see if you have it — and they show up in your stores. We're getting better data all the time on that to see how that's paying off. And then we've 'buy online, delivered at home,' 'buy online, delivered locally.' And so all of those pieces of the

e-tailing are there. Then you got the fulfillment side.”

All three lanes offer teaching opportunities to make your business better and stronger, he added.

Better support in a new normal

Automotive aftermarket distributors are looking for help on many issues from their supplier partners. Those providing that help are providing “tremendous value,” said Mauro Cifelli, president and CEO of Groupe Del Vasto.

While suppliers might be seeing a return to normal on their end of things, he pointed out at AIA Canada’s National Conference that ‘normal’ may mean one thing for suppliers but there’s a ‘new normal’ distributors are facing.

“In our case as the distributor, what that means is we are compensating for all of the volatility that's in our supply chain,” he said at during the session Focus on the future – Industry leaders’ panel. “Inventories are sky high, our carrying costs are up and we're trying to manage labour, we're investing in technology and innovation to try to keep up with it with some of the volatility in the supply chain.”

Without the likelihood of returning to an ‘old normal,’ Cifelli

www. autoserviceworld .com JULY / AUGUST 2023 19
PENTOSIN FLUIDS ARE DESIGNED TO MEET THE STRICT OE STANDARDS OF THE WORLD’S FINEST IMPORTS. CHECK OUT OUR FULL LINEUP OF HIGH-QUALITY FLUIDS AT CRPAUTOMOTIVE.COM OR VISIT OUR ONLINE CATALOG AT SHOWMETHEPARTS.COM/CRP. © CRP Industries® Inc. All rights reserved. FROM THE FIRST FILL TO THE LAST.

Jasna Smiljcic, senior director and country leader with Gates Canada, noted that while there’s a lot of competition based on research and development, she wants to see more partnerships at the distribution level.

Change and adapting to change will always be there, she stressed.

Furthermore, if suppliers are wondering how to make themselves more appealing to distributors amid a growth of private brand popularity, Washbish has a simple answer: Provide better support.

“You suppliers that support your brands with feet in the street, standard training programs, etc., those are the things our technician customers like to have and like to hear,” he said. “So we are the champion of your brands, of the national supplier brands. Those are the ones that we would prefer to sell. We'd rather sell your name brand all day long.”

Technicians will ask the most important question with just four words: “What’s in the box?” Answering that question goes a long way to helping sell products, Leimenstoll said.

“When we're talking to the independent service provider, that matters to them,” he explained. “And I think that's something that all of us could do a better job with in making sure that we're talking about: 'When you open when you open my brand box, this is what you're going to get and this is what you can expect.'”

And no matter how deflating it can feel at times, keep offering training.

“We just got to keep pounding it,” Leimenstoll said. “And I know sometimes it's hard when we're out selling training, and you walk in the room, there are only 20 people sitting there and there should be 200. But we're going to keep pounding, you're going to keep pounding, we got to get the training out there.”

Big box competition

The challenge for the aftermarket is that they’re up against competitors from outside the traditional sandbox. Their digital presentation is slick. They may sell their parts for less. They come with big-name swagger.

For Leimenstoll, he stressed that the distributor’s advantage is having consistency when it comes to the people managing the relationship with the independent service provider and getting them closer to them than a big box player could.

“As an organization, how do you try to beat the big guy? You got to do something they can do. And I think [there's] only one thing you can do,” he said. “When they have the same brand sitting there for 25 per cent less, that's a little bit of a challenge in the fact that it's going to start compressing the margins. And we're seeing that right now. So ultimately, I think we're sticking to our game plan.”

He also pointed out that distributors can do better on the value-added services, particularly training.

“It's still a hand-to-hand combat location game. And if you're in the right place, and you got the part and you have the relationship, you can win this game,” Leimenstoll further observed.

And the relationship becomes even more important as consolidation goes through much of the aftermarket.

Switch to Induction Heat

Release all types of adhesives bonded to the metal without the collateral damage of open flame with the Inductor Max Kit. The kit is completely portable with the induction inverter mounted in a carry case. It offers audible and visual power indicators.

“For us, the two places that we get concerned about are not in our space. It's the space above us, the vendors — the consolidation that's happening there, which has taken some good vendors that maybe ain't so good anymore — and then the consolidation underneath us with the professional installers,” he said.

Buller said he was “pretty confident” that the playbook for distributors will help them win at the end of the day. Of course, this isn’t an easy business. There are challenges — be they new ones or consistent ones — that come up every year. But this sector isn’t alone in having hurdles in its way.

“We make our adjustments on the fly. And I think I think the retailers are going to have their big share of problems competing with all of us as well. So I don't think they're sitting on the other side of the fence going, 'This is easy. We're just taking candy from a baby here.' So I don't think that's going on either,” Buller said. “So I think it's a fair fight. I think we're all doing pretty good.”

20 JULY / AUGUST 2023 www. autoserviceworld .com
www.theinductor.com
Tag us in your photos #InductionInnovations GRAPHICS FASTENERS AUTO GLASS
Do it Faster - Do it Better - Do it Safer
Available through your local tool distributor.

We’re looking for the best!

Know

Nominate

THE 2023 SHOP OF THE YEAR

Tell us their story:

• What makes this shop special?

• How are they going above and beyond for their customers?

• How are they standing out from their competitors?

• How have they innovated over the last year?

WINNER WILL RECEIVE

- Milwaukee Tool prize pack valued at $3,500, ranging from Packout equipment to tools

- A visit from a Milwaukee Tool representative and Turnkey Media for an award presentation

-Shop spotlighted in CARS magazine’s December issue

WE CAN’T WAIT TO HEAR FROM YOU!

We want to recognize a shop that has demonstrated high performance in the bays, shown innovation and creativity— through training, marketing, customer communication and/or sales. Historical success is always a contributing factor.

Deadline: October 20, 2023

SPONSORED BY

www.autoserviceworld.com/awards
2023
a jobber worthy of recognition?
An auto repair shop that has captured the imagination of the community with its unique approach to customer service, dedication to excellence, training, and improving the image of our industry. them now for the prestigious Shop of the Year Award, sponsored by Milwaukee!

Tackling talent challenges with a blast from the past

So-called

Amid a shortage of talent, trying to bring back former employees is one strategy your business should try. And this may be no better time, according to a study.

According to recruitment consultancy Robert Walters, nearly four in five (79 per cent) employees who left for what they thought would be greener pastures would be open to returning to their previous employer. Half of them said the reasons why they left — purpose, pay or flexibility — are no longer applicable in today’s market.

These are called ‘boomerang employees’ — those who left for a new company but are returning to their old one.

Robert Walters further found that 95 per cent of employers would take back those employees. About one in five (23 per cent) have

THE GARAGE PORTAL FOR TECHNICIANS

REPXPERT: The Technician‘s Resource

Get product support as well as free access to training videos, pro tips, and installation guides. The online catalog provides part info and specs for our Schaeffler bearings and seals, LuK transmission, and INA engine products.

22 JULY / AUGUST 2023 www. autoserviceworld .com
MANAGEMENT www.repxpert.us REGISTER FREE AT
‘boomerang employees’ may be an answer to some of your needs. But how do you bring them back? //

reached out to their previous employer. So if you’re in need of a good employee and happen to know one who worked for you, it would be worthwhile to look into it, said Martin Fox, managing director of Robert Walters Canada

“Across 2021, we saw record pay rises offered to professionals, with promises of an uberflexible and hybrid culture. Come 2023, and these pay rises now pale in comparison to the rising cost of living and inflation – with those new starters who were offered inflated salaries being much less likely to have received a pay increase this year,” he said. “It appears that workers are realizing that the grass may not have been greener after all.”

What was coined as the ‘Great Resignation’ has turned into the ‘Great Regret,’ Fox observed.

Bringing back former employees was a strategy endorsed by Linda Brenner, managing director and founder of Talent Growth Advisors, who has worked with aftermarket and other industries as an advisor.

At NAPA Expo 2022, she encouraged aftermarket businesses to poach back former employees as talent wars rage on. Brenner said employers should check in with ex-staff if they’ve been gone for a while to see if they’re actually happy with their new gig. Tell them how you’ve changed and why it would be a good fit for them now, she recommended.

In the Harvard Business Review, authors Anthony C. Klotz, Andrea Derler, Carlina Kim, and Manda Winlaw noted that employers — especially with great employees — shouldn’t burn bridges when staff leave. Stay in touch. Keep them in your professional social networks.

“When an employee gives notice, most companies focus on minimizing the disruption to the organization and remaining workers,” they wrote. “While understandable, this approach is incomplete. In addition to these efforts, employers should take steps to build positive relationships with departing workers. After all, our research shows that these employees represent a substantial future recruiting pool.”

And timing is everything. Wait until about a year after that employee has left before you reach out to them.

“The one-year anniversary of a former employee’s resignation represents a natural milestone to check in, express to them that they are missed, and make a rehire offer,” the

authors advised. “Our research shows that this is also the time when they’re most likely to want to boomerang back, but employers shouldn’t just sit around and wait for it to happen. Reconnecting at this critical moment can be a great way to encourage an employee who may be considering a return to make the leap.”

Need to sweeten the pot? Offer a raise or a promotion from their previous role.

“The Canadian market continues to grapple with a talent shortage, and so boomerang employees could well be a solution for many companies,” Fox said. “This is talent that can hit the ground running — they have already been inducted into your business, they will be familiar with processes, and have a previous vested interest in the brand — all qualities which can take years to instill in a new employee.”

www. autoserviceworld .com JULY / AUGUST 2023 23
READY TO GROW? MAKE DORMAN YOUR FIRST-CALL SUPPLIER.
over 100 years, we have been helping our retail and distributor partners drive significant growth in the aftermarket. LET US HELP YOU WRITE YOUR SUCCESS STORY. LEARN MORE AT DORMANPRODUCTS.COM/TOUR AUTOMOTIVE EXPERTISE One of most trusted companies in the aftermarket. SUPERIOR INNOVATION Growing the aftermarket with cross-category exclusives. 360o SUPPORT Surrounding your business with market-leading, crossfunctional partnership. Jobber-News-CARS_Print-Ad-FINAL.indd 1 3/31/2023 11:10:47 AM
For

THE NEW RISKS FOR DISTRIBUTORS

Three experts weigh in on what the aftermarket is thinking about — and it all centres around electric vehicles

The change in product mix distributors will have on their shelves is going to be one of the biggest challenges they face in the coming years, according to an industry expert. While the biggest trend a few years ago would have been disintermediation and distribution — in essence, removing the middle man in the distribution process (see: Amazon) —  now it’s disintermediation from electrification, said Bret Jordan, managing director at Jefferies, a consulting firm that works in the automotive aftermarket.

“There is going to be some impact on existing product mix over time,” he told attendees of this year's MEMA Aftermarket Suppliers Vision Conference in Chicago.

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

24 JULY / AUGUST 2023 www. autoserviceworld .com
“YOU NEED IT, WE’VE GOT IT ” . THAT’S NAPA KNOW-HOW .
//
INDUSTRY INSIGHTS

Jeffries predicts 55 per cent of the car parc will be electric by 2050. So distributors need to look at the timeline, see where their customer base is and adjust their product mix to match up.

“There still is a reasonably high lifetime maintenance spend [on EVs], it's just different product,” Jordan pointed out. “You've got a lot of HVAC [components] around heating and cooling and batteries. For charging, you've got a lot of weight and a lot of undercar — a lot of torque, so a lot of tearing up the undercar.”

For Todd Campau, associate director of aftermarket solutions at S&P Global, right to repair was his biggest concern for tomorrow.

For the most part, the industry can handle most of the internal combustion engine vehicles on the road today; there’s a lot of knowledge in maintaining them.

“But as it shifts more and more to battery electric and plug-in hybrids and more sensors — and we haven't even talked about autonomous driving anything for a while because it kind of got backburner during the pandemic — the ability to repair and maintain those systems is critical for the aftermarket,” Campau said.

Not having information to maintain these vehicles is “our biggest existential risk” he added during the 3 Dragons: A View from an Economist, Wall Street Analyst and Aftermarket Analyst session. “It doesn't matter if it's a battery electric vehicle or an internal combustion vehicle or a hydrogen vehicle.”

But he also agreed with Jordan — there will be plenty of repair opportunities, and expensive ones.

“The repairs are likely going to be a lot more expensive. The number of repairs may not be as high as we have with internal combustion. But I think there's going to be opportunity and there's going to be revenue,” Campau said. “I think calibrating and maintaining sensors is a huge opportunity for somebody to dive into.”

Jordan also noted increasing consolidation as a threat.

“There used to be a lot more players. We've now sort of consolidated the market down to four or five big distributors [in the U.S.],” he said.

So I think you're going to see consolidation; you're going to see consolidation on the service side. So it'll be fewer distributors with fewer points of sale. But the underlying sales will still be there, it's just going to be the more sophisticated operators doing it.

For a dose of positivity, Liz Clark, automotive team lead from the Office of Transportation and Machinery at the International Trade Administration, pointed to the amount of opportunity the industry has ahead of it.

“I think there is opportunity. It's going to come through that change and that diversification where you can leverage it just right and find those markets and opportunity, find those business opportunities, whether it's in repair, or in distribution, that they do exist,” she said on the panel. “And that will be changing rapidly. And you can stay on top of that change, you can find those opportunities.”

Quartz Ineo Xtra, Engineered for European vehicles

Quartz Ineo Xtra engine oil with Eco-Science technology.

It ensures outstanding wear protection, strong durability and exceptional fuel economy performance whilst maintaining efficiency of emission systems in latest diesel and petrol engines of European vehicles requiring SAE 0W-20 viscosity grade.

totalenergies.ca

www. autoserviceworld .com JULY / AUGUST 2023 25 ECO•S C IENCE TECHNOLOGY 30-34 Rue du Chemin Vert 75011 Paris +33 (0)1 85 56 97 00 www.carrenoir.com Ce fichier est un document d’exécution créé sur Illustrator version CS6. TECHNIQUE TONS RECOMMANDÉS TOTAL TOT_21_00008_TotalEnergies_Logo_RGB Date 26/05/2021
EN_TEMCA_Ad Jobber News v1 06072023.indd 1 2023-07-06 10:29:39

As brand marketing manager for Wakefield Canada, Donny Braga knows all about building engagement and interest around a company and its products. That is something he wants to bring to the Young Professionals in the Aftermarket (YPA) Committee – marketing the committee as the source of knowledge for up-and-coming auto care professionals.

YOUNG PROFESSIONALS IN THE AFTERMARKET SPOTLIGHT:

Name: Donny Braga

Company: Wakefield Canada

Title: Brand Marketing Manager – PCMO

Number of years in the aftermarket: 15

What company do you currently work for? What is your position?

I am currently with Wakefield Canada, in the role of brand marketing manager – PCMO (passenger car motor oil), managing the Castrol family of brands.

This is a new role for me as of December 2022. I joined Wakefield Canada in December of 2021 as the marketing innovation and Super Clean brand manager. In that time, I guess they liked what I was doing for the Super Clean brand and with my brand experience at other companies, they wanted to give me the Castrol family of brands to manage.

Did you know you wanted to work in the automotive aftermarket?

Getting into the automotive aftermarket just sort of happened. I had always wanted to be either a paramedic (from my lifeguarding days) or a marketer because of the fun, creative and dynamic nature of the role. I was sure of that. After working for several years in the marketing department at Molson Coors, I got a call from a headhunter about an opportunity that ITW Permatex had to join their team as their marketing manager. This was just after ITW had acquired the Spray Nine brand. In my time with them, I was part of the acquisition team for several key automotive brands, including Rain-X, Spray Nine, Slime Tire Sealant, Fix-A-Flat and Black Magic.

What is one of the biggest and/or most difficult lessons you have had to learn as a young professional?

As a young professional, it is important to stay grounded, listen and learn as much as possible about the business, industry, products, and customers. Take time to discuss situations and options with your colleagues. It is important to understand that business is a team effort. No single department or person will help the company succeed. Drop department silos and have lunch with colleagues in different departments, take the time to learn what they do and how it impacts the business, because that knowledge will come in handy.

What advice would you give someone either starting in the industry or looking to transition into the industry?

Early in my career, I was taught that it is easier to edit than create. So, for young professionals, do not be offended or upset if people critique your work or make suggestions. Instead, learn, grow and continue learning for each experience.

About the Young Professionals in the Aftermarket

Young Professionals in the Aftermarket (YPA) is an Automotive Industries Association of Canada (AIA Canada) committee comprising of young executives, of 45 years or younger, in the Canadian auto care sector. The Committee’s mandate is to ensure the future growth and prosperity of the aftermarket industry.

26 JULY / AUGUST 2023 www. autoserviceworld .com

BAYWATCH TMPS COVERAGE

Schrader’s coverage of its EZ-sensor family of products has expanded with applications launched for 2019-2027 Ram 2500 and 3500 vehicles. Additionally, Hyundai Azera vehicles from 2011-2013 and 2014-2018 are covered. Users will have had to do a software update on Schrader programming tools, released on Jan. 9. If using ATEQ programming tools, these received a fourth-quarter update for 2022 that was released in January. For Bartec tools, software updates are needed from 64.0.22, released in August 2022 and onward. Users of other programming tools are asked to contact their supplier to check the latest software updates and new coverage release dates.

www.schradertpms.com

LUG NUT WHEEL SOCKETS

Milwaukee Tool added to its Shockwave Impact Duty sockets line up with new 1/2 Drive Lug Nut Wheel Sockets. The sockets feature a durable, non-marring sleeve to protect rims during tire changes while ensuring the durability of the sleeve. The sleeves are colourcoded gray and red to distinguish between metric and SAE sizing. Constructed with thin walls, the sockets are optimized for users to access the tight spaces around lug nuts. Users can attach the sockets to half-inch drive impact wrenches, drivers and adapters.

www.milwaukeetool.ca

MINI PRY BARS

Mueller-Kueps released the Mini Pry Bar Kit (No. 276 100). The pry bars have a black oxide finish to help protect the tool against corrosion. It comes with hardened and tempered steel to provide durability. The six-sided shaft makes the prybar stronger than its rounded shaft counterparts. The pry bars have an ergonomic two-component handle for a comfortable and secure grip. Two different tip widths and an angled design give the user maximum leverage and options.

www.mueller-kueps.com

OIL FOR COLLECTOR, CLASSIC, RACING

Wakefield Canada announced the launch of

Castrol GTX Classic motor oil. The new product has been developed specifically for classic and collector cars and racing applications. GTX Classic is a highperformance formula for push-rod, flat-tapped engines and performance cam applications. It’s blended with high zinc and phosphorus content

to help prevent premature aging, wear and metal fatigue. It also features minimal foaming and high resistance to thermal degradation. It’s compatible with gasoline and alcohol-based fuels and is currently available in the 20W-50 grade.

www.wakefieldcanada.ca

COCKPIT GAUGES

A new line of VDO Cockpit International GEN

www. autoserviceworld .com JULY / AUGUST 2023 27

BAYWATCH

II gauges with 26 gauges covering eight different functions is now available. They include 3 3/8” (85mm) speedometers and tachometers as well as 2 1/16” (52mm) voltmeters, oil pressure, gear pressure, water temperature, oil temperature and fuel gauges. The rust-resistant steel housings gauges and are available in dual

scale (U.S./Metric) and single scale metric variants. The tachometers feature LCDs along with traditional pointers and are available for generator or magnetic sender feeds. The speedometers are available for 120mph/200kph and 85mph/130kph versions

www.vdo-instruments.com

WHEEL CHARGER

Clore Automotive has introduced the new

Continental brushless blower motors –true fit with plug and play installation

Continental brushless blower motors deliver true OE performance and unsurpassed quality, backed by our deep technical expertise and solid customer support. These blower motors restore the original cooling performance and feature OE mounting locations and plug-and-play electrical connections for quick, easy installation, right out of the box.

Find the right part at:

www.continentalaftermarket.com

Pro-Logix Wheel Charger Model PL3740. It brings versatile service to today’s busy shops, from battery charging and engine starting to battery maintenance and power supply support for a variety of applications. It provides shops with the ability to manage a variety of lead acid battery types, including AGM batteries. It also has charge settings for flooded and AGM/spiral wound batteries to provide each battery charged gets exactly the power it needs. application specific blower wheel to deliver genuine OE performance. Continental’s new blower motors will be available to the aftermarket in the first quarter of 2023.

www.cloreautomotive.com

ENGINE MANAGEMENT SENSORS

Continental announced new knock, cam, and crankshaft sensors to its OE-engineered engine management sensor line. Application coverage Audi A3, A4, A6, A8 Allroad, Q7, RS5, RS7, S6, S7, S8, and TT; BMW Series 1, 2, 3, 4, 5, 6, 7, M Series, X3, X5, X6, Z4, and Z3; Infiniti QX56, Mercedes Benz C230 and SLK 230; Mini Cooper, Countryman, and Paceman; Nissan Altima, Armada, Cube, Frontier, Maxima, NV200; and VW Atlas, Beetle, CC, EOS, Jetta, Golf, Passat, Phaeton, and Touareg. The program covers more than more than 12 million vehicles in operation in Canada and the U.S.

www.continentalaftermarket.com

PERFORMANCE VALVE SPRINGS

Elgin Industries has launched a broad new line of Elgin Pro-Stock performance valve springs engineered specifically for General Motors LS based engines. The new valve springs are designed for use with the brand’s performance camshafts, including the Sloppy Stage 2 hydraulic roller lift cam. The new Pro-Stock valve springs include an array of advanced features designed to ensure durability and valvetrain performance, including: Micro-engineered surface finish, multilayer fatigue enhancement, proprietary heat-treat process and beehive and conical spring geometries..

www.elginind.com

28 JULY / AUGUST 2023 www. autoserviceworld .com
CO7002 7-2023 Jobber News_Blower_Motors_HalfIsland_Print_V1.indd 1 5/23/23 9:15 AM

AUTOMATIC A/C RECHARGING MACHINES

The Rotary R3AC Series A/C recharging machines are a vehicle diagnostic tool, designed to automatically service the refrigerant in vehicle air conditioning systems. These machines provide North American automotive service professionals with a quick, efficient and cost-effective way to recover, recycle and recharge R134a and R1234yf refrigerant gases. Three models are now available: Single-gas R3AC50-A (R134a refrigerant compatible); single-gas R3AC60-YF (R1234yf refrigerant compatible); and dual-gas R3AC80-AYF (both R134a and R1234yf compatible) that automatically purges between gas changes. www.rotarylift.com

BOSCH RELEASES

Bosch added three braking parts, 16 fuel and water pumps, two ignition coils, 30 sensors and one fuel injector in the first quarter of 2023. Bosch’s braking parts and assemblies include the new Bosch Hydro-Boost Braking Assembly, the QuietCast Disc Brake Pads and Bosch Blue Disc Brake Pads. Included in 16 new fuel pump parts is the Bosch Auxiliary Water Pump, equipped with a sealed pump chamber, an independent

heating system and an EV and hybrid compatible cabin heat control system to complement the increasing use of ADAS and Body Electronics. www.boschautoparts.com

WINDOW ASSEMBLIES

ZF Aftermarket announced 56 different new part numbers for Lemförder window regulators, motors and related assemblies for various 1999-2018 Audi, BMW, MercedesBenz, Volkswagen and Volvo models. The full line of Lemförder window regulators includes more than 1,800 SKUs covering 95 percent of the aftermarket. ZF Aftermarket plans to release 300 more in North America in 2023. www.zf.com

www. autoserviceworld .com JULY / AUGUST 2023 29
23_003853_Jobber_News_JUL_CN Mod: May 16, 2023 10:00 AM Print: 06/02/23 1:30:40 PM page 1 v7 SORBENT ESSENTIALS ORDER BY 6 PM FOR SAME DAY SHIPPING π SHIPPING SUPPLY SPECIALISTS COMPLETE CATALOG 1-800-295-5510 uline.ca BAYWATCH ADVERTISER INDEX NAPA www.napacanada.com 24 32 2 NGK Spark Plugs ngksparkplugs.ca 15 19 Schaeffler www.repxpert.us 22 Uline www.uline.ca 29 27 PartSource www.partsource.ca 31 Induction Innovations www.theinductor.com 20 Shop Of The Year www.autoserviceworld.com/awards 21 Total Energies www.totalenergies.ca 25 Continental IAM www.continnentalaftermarket.com 28
Dorman www.dormanproducts.com/tour 23 EV World www.turnkey.media/evwsubscribe 4

CAR-TOONS

30 JULY / AUGUST 2023 www. autoserviceworld .com

James Hinchcliffe trusts in PRO-SERIES FOR Q UAL I TY T H E PROS COU N T ON,

JAMES HINCHCLIFFE Canadian IndyCar Driver and 6 time race winner

NEW ADAS LIFT

TURN A SINGLE BAY INTO A MAXIMIZED

TO THE

BRING YOUR BAY MAX

ADAS BAY MAX LIFT

Designed specially for ADAS calibration, while providing safer and more efficient mechanical repair and wheel alignment in a single standard bay space.

ALL SYSTEMS ADAS CALIBRATION

MECHANICAL REPAIR

WHEEL ALIGNMENT

PROFIT CENTER

PREMIUM LIFT FEATURES

The innovative table riser, rolling jacking beams, stainless steel radius plates, runway air inflation, and LED undercarriage lighting are all standard.

DRIVE ON/OFF AND IN ANY DIRECTION

Front and rear open runways paired with the unique flush-mount H shape configuration increases floor space, allowing for all systems ADAS calibration.

IA900 + MSULTRA

A single system complete diagnostics, alignment, and ADAS workflow. One Maximized Bay.

Maxisys
AUTEL ACADEMY TECHNICAL TRAINING Visit autel.com/us/academy and register today for hands on automotive diagnostic, repair, service, and ADAS instruction. AUTEL.COM FOLLOW US @AUTELTOOLS

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.