We bel ieve in hel ping jobber stores create val ue. We bel ieve that pr ice is not why your customer s choo s e and remain w ith you. We bel ieve that retur n s shoul d be proce s s ed quick ly and w ithou t f u s s , i t ’s your mone y. We bel ie ve t he enem y i s an y t hing th a t s l ow s you dow n . We bel ie ve in c ar ing. We bel ieve that a def ec ti ve par t is the wor s t situation f or you, your c us tomer, and their cu s t om er. We bel ie ve t h a t pl ac ing a n or der s houl d no t r e q uir e a c om pu t er s c ienc e de gr e e. We bel ieve th a t a per s on pic k ing up t he phone t o a s s i s t you i s s t il l r el ev ant . We bel ieve th a t no del i ver y dr i ver s houl d w ai t . We bel ie ve th a t your e ffi c ienc y s t ar t s w i t h our s . We bel ie ve in t e c h nol og y and in no v at ion . We bel ie ve i t ’s n a t ur al t o w a n t t o r e c ei v e y our or der q uic k ly. We b e l i e ve th a t h a v i n g a p r o d u c t l i n e w i t ho u t c o m p r e h e n s i ve c o v e r a g e i s po i n t l e s s . We b e l i e v e y o u c a n ’ t s e l l f r o m a n e m p t y s h e l f. We b e l i e v e w e l l- p a c k ed o r d e r s s av e t i m e . We bel ie ve in del i ver ing m or e s peed , m or e s el e c t ion and m or e s uppor t . We buil t and gr e w t hi s en tire c omp any on t hat ide a. IF Y OU A
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Mark your calendars for the 49th Annual Shad’s R&R Golf Tournament on Thursday, June 13th. All proceeds to Muscular Dystrophy Canada.
START TIME 10:00am SHARP!!
If you would like to become a sponsor or make a donation to SHAD’s R&R For the Kids, please contact one of our board members directly.
Shad’s Board of Directors
Chairman Brad Shaddick brad.shaddick@driv.com
• Kristine Brown KBrown@wakefieldcanada.ca
• Luc Champagne luc.champagne@autosphere.ca
• Andrew Connor aconnor@dormanproducts.com
• Mike Fazackerley mike.fazackerley@matthewscott.com
• Charlie Grant cgrant@gbsales.com
• Patricia Lazzarotto patricia.lazzarotto@firstbrandsgroup.com
• Mark Potts mpotts@driv.com
• Malcolm Sissmore malcolm@sissmore.com
• Scott Stone Scott@promaxauto.com
• Jeff Van de Sande jvandesande@uapinc.com
• Sean Williams swilliams@uniselect.com
• Cameron Young cameron.young@ca.bosch.com
• Jason Yurchak jasony@worldpac.com
The automotive aftermarket stands at a pivotal juncture in its storied history. While fond reminiscences of the "good old days" continue to fuel our industry, a wave of fresh opportunities is rapidly approaching.
Today's industry is caught in a dichotomy. With vehicle electrification on the rise, focusing solely on this area may not be feasible due to the current limited client base. Yet, overlooking the necessity to accommodate electric vehicles would be to dismiss a trend poised to significantly influence the sector.
Indeed, traditional internal combustion engines vehicles remain our industry's cornerstone. However, their dominance is waning. Recent data from S&P Global Mobility indicate that ICE vehicles made up about 78 per cent of new vehicle registrations in Canada last year. That’s a decrease from 84 per cent in 2022. Zeroemission vehicles, including battery-electrics, hybrids, and plug-ins, are becoming increasingly prevalent on Canadian streets. Are we effectively preparing for the shift?
“Because if we’re not embracing that change, we’re resisting it,” said Ryan Bruno, incoming chair of the Automotive Industries Association of Canada.
I had an interesting conversation with Bruno that spanned many topics in the auto care industry. I had not met him prior to our chat. Those who know him may be aware of his ability to offer up many smart insights.
The quote above is just one example. As chair, Bruno wants to ensure that Canada’s aftermarket isn’t watching change pass by without action. Further to that point, resisting change today means having to deal with it at a quickened pace tomorrow.
“We often hear that, 'Today things are changing faster than they ever have.’ But my view is actually to look at it a bit differently and say, ‘Things are changing at a slower pace today than they ever will again,’” Bruno said.
This perspective is particularly apt as our industry undergoes unprecedented transformations, not only in electrification but across all fronts.
Consider advanced driver assistance systems (ADAS), a relatively recent development. How many shops currently have the capability to perform recalibrations in-house? The rise of third-party ADAS specialists signifies a missed opportunity for traditional shops, diverting potential business to new market entrants. Or, even worse, these vehicles are being sent to dealerships, removing that business entirely from the aftermarket.
Bruno, with his roots in the collision sector, recognizes the immediacy with which his field encounters new vehicle technologies, contrasting with the mechanical sector's more gradual exposure. He sees untapped potential for cross-sector learning and cooperation.
“Why can’t you take something that’s evolved over here organically but take that concept and bring it to the other side, or vice versa?” he wondered.
As we navigate these changes, whether it’s adapting to industry shifts, capitalizing on new opportunities or learning from each sector, the aftermarket faces an opportunity to connect its past success with future opportunities.
We want to hear from you about anything you read in Jobber News magazine. Send your email to adam@turnkey.media
Just from the numbers quoted here, the solution is obviously straightforward. If the dealerships can earn another $400K-500K a year, put $100K of that directly on top of what the techs already make. Both parties win. The dealers make a lot more money, the techs get a better share and you will have a lot more people entering the trade. There is a big reason why I decided to become selfemployed for the last 40-plus years of my career. I love the trade, but the employee-employer dynamics have always been out of kilter.
Larry Larratt, Riverbend AutomotiveI firmly believe the issue is with the power lines not being able to sustain the increased demand. Especially when the governments are trying to eliminate fossil fuels for furnaces, water heaters, stoves and barbeques. There are older areas in our cities where the power lines are near capacity now. Nobody is upgrading them yet.
Bob Ward, The Auto GuysThere are thousands of businesses across Canada that are for sale due to the owners retiring or soon to retire. Lots of them are turnkey businesses and the amount of people that refuse to buy a business that is all set up is staggering to the mind. Affordability in big centers is beyond ridiculous, but in smaller towns it is incredible how inexpensive a lot of them are. Tools and shop equipment are the largest items in most businesses and getting a client list is a huge amount of work. Most shops have all this done when the owner wants to retire. Government and private loans are everywhere, with few taking advantage. I started 25 years ago in a one-bay shop, and I was scared to death to lose my shirt. Ten-bay shop now, three good employees and constantly busy.
Barry Dale, Trinity RepairYou have the option to make it a teachable or terrible moment. We had a similar incident with a double-gasketed spin-on oil filter in an older high mileage vehicle. The twist was the owner upon seeing an oil leak elected to keep driving the vehicle to his house, several miles away in traffic. Upon finding the issues, there was an a-ha moment. Instead of berating the tech, my response was how can we salvage this vehicle and the customer. Calmly assessing the situation a resolution was reached that everyone found agreeable and positive. A procedure was put in place to verify the removal of the old gasket
prior to installation of a new filter so that this seemingly amateur mistake could not reoccur.
Dave Mellner, readerI agree with Dave. “Live and learn.” Make it a learning experience and discuss or put procedures in place to avoid it happening again. No technicians like comebacks of any kind , losing your cool only aggravates the situation. If you lead by example what kind of example are you setting by screaming and yelling.
Bruce Eccles, Eccles Auto ServiceIt boils down to a procedural issue. If procedures are followed things like this wouldn’t happen. This would be an opportune time for a staff meeting to review all procedures. You also need to read the tech when you discuss the issue with him in private. Your reaction will depend on his reaction to the situation. The situation should be documented and put in his file.
Bob Ward, The Auto GuysWe have never and will never do flat rate. Hourly or salary is the only way to go,
Sean Greenberg, Seamless Auto CareThe aging customer fleet also makes the flat rate times allowed misleading and often unattainable, the older and rustier the average vehicle becomes the longer it takes to perform the work. Flat rate shouldn’t exist for anything more than five years old.
Glenn Kroeze, Western TurboIn our town, the dealerships and Canadian Tires are flat rate. Both Canadian Tire stores are almost closed due to not finding any technicians. The one next to our store only has a licenced tech two days a week and one lube technician and they have a 12-bay shop. We have got some really good hires from dealerships because the techs are tired of warranty work, which is significantly less than regular flat rate pay. It’s a win-win for the independents who can score some specialized technicians.
Vinnie Klimkosz, Vinnie’s Mr. FixitAnother problem that has occurred in the past is where a welllearned technician gets paid a flat rate of 1.1 hours to repair a wellknown problem on a wiring harness while a lesser-learned mechanic gets paid 3.1 hours straight time for the same repair. Is there any wonder why techs are retiring early or leaving the trade because of this one reason alone? I have been saying for years that the more capable techs are getting penalized and the less capable techs are getting rewarded. Glad I am done.
Barry Makins, Makins Automotive
VEHICLE KILOMETRES travelled by Canadians have fallen back to Earth and substantially subsided, according to new data from AIA Canada.
The Vehicle travel trends in Canada: Q1 2020 to Q4 2023 report shows that Canadians eagerly got behind the wheel in 2022 before tailing off and hitting a four-year quarterly low to close out 2023.
AIA Canada partnered with Inrix, which manages vehicle traffic data, and researcher Clarify Group on the report. It shows median kilometres travelled, number of trips and average distance travelled compared to a baseline — represented as a fraction of what would be expected without a global pandemic.
“This baseline provides us with a ‘typical’ period before COVID-19 so we can observe if, when, and where mobility trends among passenger vehicles are returning to pre-pandemic levels,” the report stated.
Kilometres travelled in Q4 2023 were down 58 per cent from the same time the year before. Even the middle quarters, which cover the summer months, saw significant reduction in kilometres travelled compared to 2022.
The slowdown was attributed to a weakening economy as higher interest rates, inflation and energy costs take a toll, as well as changing work practices.
“Shorter trip durations compared to other quarters suggests a tendency for drivers to take more local journeys compared to longer drives, especially with work from home,” it added.
The full report includes national and province-by-province breakdowns across the categories as well as further insights. It is available for free to AIA Canada members and $399 for nonmembers.
THE AUTOMOTIVE AFTERMARKET is reporting a positive trend in sales growth among retailers, with significant optimism for 2024.
DesRosiers Automotive Consultants collaborated with Automotive Aftermarket Retailers of Ontario members to unveil insights into the performance of the Canadian automotive aftermarket in 2023, alongside predictions for the year ahead.
“In recent years, the automotive aftermarket had maintained strength even as significant portions of the auto industry witnessed significant setbacks,” observed Andrew King, DesRosiers managing partner. “Despite lingering parts availability and pricing issues, the aftermarket saw significant success in 2023 with more growth expected in 2024, this time in step with a recovering new light vehicle sales market.”
The survey’s findings indicate that members saw 2023 as a year of growth for the sector, with half of respondents reporting a sales increase of one to 10 per cent. Another 37 per cent witnessed growth exceeding 10 per cent.
The majority of retailers (69 per cent) anticipate single-digit sales growth in 2024. A small 8 per cent are optimistic, expecting sales to rise by more than 10 per cent.
The survey also highlighted ongoing parts supply challenges from both jobbers and new vehicle dealers, albeit with some improvement noted over the year. While 67 per cent of retailers faced supply issues from jobbers in the first half of 2023, this number dropped to 52 per cent for the year.
Additionally, retailers reported a noticeable increase in parts prices in 2023 compared to the previous year, with over half of the responses indicating price hikes of 6-10 per cent from both jobbers and new vehicle dealers. Despite the clear inflationary pressures, DesRosiers noted, there was a slight easing in the rate of price increases from the early to later parts of the year. Scan
LEADERS FROM O’REILLY AUTOMOTIVE joined hundreds from across the Canadian automotive aftermarket for Vast-Auto Distribution’s annual convention in Montreal last month.
O’Reilly announced in December 2023 that it had acquired Vast-Auto. Chief executive officer Brad Beckham was in attendance at the event and interacted with guests to exchange ideas and insights.
The convention saw more than 650 attendees from parts stores, repair shops, suppliers and Vast Auto Distribution team members. The agenda was packed with presentations, including the unveiling of the new Parts City Auto Parts program for stores and the Certified Auto Repair program designed specifically for repair shops. In addition, participants took part in a variety of seminars related to M 360 Mechanic, Auto Mecano, and OCTO Auto Service Plus.
Several awards were handed out. The Quebec Store of the Year was shared by Perry Auto Laval and Distribution BAMM. Ontario Store of the Year was Robins Auto Parts. Atlantic Store of the Year winner was Atlantic Auto Parts Resource.
Scan the QR code above to see the full list of winners from the event.
ZERO-EMISSION VEHICLES took a larger share of new vehicle registrations early on last year and help those gains to close out 2023.
Battery electrics made up 8.8 per cent of new registrations in 2023 (up from 7 per cent in 2022) while plug-ins accounted for 2.8 per cent (1.9 per cent in 2022). That puts ZEVs at a combined share of 11.7 per cent, up from 8.9 per cent in 2022.
Hybrid electric vehicles were 10.7 per cent of the market last year, compared to 7 per cent the year before.
Internal combustion engines accounted for 77.6 per cent of new registrations in 2023, down from 84.1 per cent in 2022.
British Columbia leads the country again in adoption rates with nearly 23 per cent of new registrations being a ZEV. Quebec jumped from from 13 per cent ZEV registrations in 2022 to more than 20 per cent. The Yukon ranks third — tied with Ontario — at 5.9 per cent BEV registration share.
WHILE NOT WANTING to label current driving trends as either a new normal or a return to normal, an industry analyst highlighted that annual mileage has largely returned to expected levels.
“From an annual mileage perspective, that’s returned to pretty much what we would expect and call normal going forward,” said Todd Campau, aftermarket practice leader at S&P Global Mobility, during the webinar, Insights on Vehicle Miles (Kilometres) Travelled in Canada, hosted by S&P Global Mobility.
The more noticeable impact of the pandemic is evident in the estimated odometer readings over a vehicle’s lifetime. The two years of multiple lockdowns and increased remote and hybrid work essentially acted as a pause button, particularly for those who used their vehicles mainly for commuting.
“If a vehicle was expected to last, let’s say, 300,000 km before the
pandemic, it’s still likely to last 300,000 km after the pandemic,” Campau explained, adding that during the height of the pandemic, vehicles typically used for commuting saw a dramatic reduction in usage, accumulating far fewer kilometres than in typical years.
This decrease in usage is expected to extend the average age of vehicles. “Because the kilometres travelled paused for essentially a year or two, we could see another year or two on the average age of the vehicle,” Campau said.
This extension of vehicle lifespan is primarily due to lower odometer readings, as vehicles did not accumulate as many kilometres during 2020 and 2021.
TOTALENERGIES MARKETING CANADA announced the renewal of its partnership with Bestbuy Distributors.
The company said the collaboration is a significant step in its strategy to broaden its market presence in Canada by integrating its lubricants into Bestbuy’s distribution centres in Mississauga, Ontario, and Edmonton. This move is set to streamline the availability of TotalEnergies’ products for Bestbuy’s independent shareholders nationwide.
The company noted that the partnership aims to elevate service standards and ensure closer proximity to customers.
Olivier Gauthier, president of TotalEnergies Marketing Canada, emphasized the strategic importance of this alliance, stating it will bolster the company’s presence within Bestbuy’s network, enhancing lubricant availability and delivery quality for all members.
ATLANTIC CANADA’S COAST TIRE & AUTO SERVICE and Andy’s Tire Group announced a merger effective March 1.
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The joint operation will bring Coast Tire’s 26 commercial and consumer tire and auto retail locations, a commercial retreading plant and wheel refinishing facility together with Andy Tire’s 20 stores, three distribution centres and two retreading plants in the Maritimes, effective March 1.
Andy’s Tire Group operates under the banners of Andy’s Tire Shop, Scotia Tire Service, A-1 Tires, Miller Tirecraft and Fleet Retreading.
In an announcement posted to LinkedIn, the new group — which didn’t note a combined name for the entity — noted the importance of both companies remaining locally owned and operated while expanding each other’s reach
MONEY IS THE TOP REASON why a vehicle owner may avoid repair and maintenance work, according to a study.
The survey performed by MarketWatch found that two-thirds said a “lack of funds to pay for maintenance and care” was a reason for waiting to tackle car issues. The second most common reason in the 2023 MarketWatch Generational Car Care Survey was a “lack of knowledge or awareness of car maintenance practices” (36 per cent).
More than three-quarters of Millennials (78 per cent) said they can’t afford their repairs, leading all age groups, followed by 68 per cent of Gen Z. Still, the majority of each age group cited cost — 61 per cent of Gen X and 57 per cent of Baby Boomers.
As for where such services will be done, Boomers will most often choose a dealer (39 per cent) before an independent or small chain (37 per cent). Gen Xers are fairly evenly split between an independent (28 per cent), dealer (25 per cent) and a national chain (24 per cent). Millennials will opt for the dealer most often (34 per cent), followed by an independent (30 per cent) and national chain 17 per cent). Gen Zers were second-most likely to see an independent first (35 per cent) compared to 27 per cent who would go to the dealer first.
The overwhelming majority of respondents (91 per cent) believe
they are very responsible or take care of their vehicle as best they can. About 78 per cent of them said they stick to the recommended service schedule that’s listed in their owners’ manuals
A RECENT STUDY BY J.D. POWER reveals a noticeable decline in vehicle dependability three years postpurchase, marking a concerning trend for vehicle owners across the U.S.
The 2024 U.S. Vehicle Dependability Study highlighted an increase in the number of problems encountered by nearly two-thirds of automotive brands, with the industry average hitting 190 problems per 100 vehicles (PP100), up from 186 PP100 in the previous year. This four-point year-over-year increase underscores a growing issue in long-term vehicle reliability, the group noted.
Frank Hanley, senior director of auto benchmarking at J.D. Power, pointed out the unusual nature of the deterioration, attributing it to the challenging production period these vehicles underwent.
“This can likely be attributed to the tumultuous time during which these vehicles were built, and owners are keeping their vehicles for much longer,” he said. “In fact, the average age of vehicles on American roads today is approximately 12 years, which underscores the importance of building a vehicle designed to stand the test of time. Automakers must ensure new vehicle technology introduced today will still meet the customer’s needs years down the road.”
The 35th annual study, which assesses 184 specific problem areas across nine major vehicle categories, found that infotainment systems are the most significant source of owner frustration, with issues nearly double those of the next problematic category, exterior. Notably, connectivity problems with Android Auto and Apple CarPlay, along with built-in voice recognition difficulties, top the list of infotainment system grievances.
Isabelle Labrie is the new vice president of organizational excellence at Transit. With the company since 1997, she will oversee continuous process improvement.
Transit’s new chief operating officer is Simon Bourque He joined the company in 2009 as finance director.
Andréanne Lepage is Transit’s new operations director. She has been with the company since 2019 and will oversee improvement of automation efficiency.
Lenny Levac is now vice president of sales for Canada with Liqui Moly. Dave Bibb will take on the same role for the company in the United States.
Kal Tire announced Corey Parks as its new president. Robert Foord will transition to the role of executive vicechair of the board for the company his father founded.
Fix Network created the new position of global vice president of strategic operations and appointed Nick Spiers to the role. He was previously director of strategic initiatives.
Ethan Love is now senior manager of business intelligence and data service at the Aftermarket Auto Parts Alliance. He joined the Alliance in 2014 as a category analyst.
Josh Hessling is now senior manager of content at the Aftermarket Auto Parts Alliance. Hessling joined the Alliance in 2011 as a data analyst.
Dave Johnson is now president and CEO of the National Institute for Automotive Service Excellence. He replaces Tim Zilke, who retired on Dec. 31.
Ana Meuwissen will lead government affairs initiatives and team at MEMA, The Vehicle Suppliers Association upon the retirement of Ann Wilson.
NTN Bearing Corporation announced the addition of Kevin Huckins to its automotive aftermarket sales team as regional sales manager for the western region.
Another area where dissatisfaction has grown is with driver assistance system alerts. Despite owners having three years to acclimate to their vehicle’s alert systems, complaints have increased, particularly with features like lane departure warnings and automatic emergency braking.
600,000
Hyundai and Kia vehicles were recalled in Canada due to a problem with the anti-lock braking system that can start a fire. More than three million were recalled in the U.S.
National Highway Traffic Safety Administration
74%
Most 18- to 20-year-olds reported a stigma with going to a vocational school over attending a traditional four-year university.
The index score for consumer automated vehicle readiness dropped two points from 2022 and is now down five points since 2021.
J.D. Power 2023 U.S. Mobility Confidence Index (MCI) Study
$58,000
39% Baby Boomers will choose a dealer for repair work over an independent (37%). Gen Z was most likely to choose an independent (35%) first.
2023 MarketWatch Generational Car Care Survey
$262
Despite an increase of $15 year over year, the average cost to visit an independent shop was less than the dealership, which was up $38 to $432.
J.D. Power
9.6%
Parts and accessories store employment was up in June compared to the same time last year. Repair and maintenance saw a 5.7% increase.
DesRosiers Automotive Consultants
1,200 km
Toyota says it may be able to make a solid-state battery with a range of 1,200 km (745 miles) that could charge in 10 minutes or less.
Toyota
The Ford Mustang GT saw a 41.5% price increase over the last 10 years when adjusted for inflation. It cost $31,000 in 2013.
69%
A Baby Boomer is most likely to get vehicle issues taken care of right away. 41% of Gen Zers said the same, but 38% would do it when convenient.
2023 MarketWatch Generational Car Care Survey
February 16-25, 2024
Toronto, Ontario
It was a record-setting year for the Canadian International AutoShow in Toronto, which was visited by more than 371,000 attendees. Four days set single-day attendance records. And they got to see the latest in automotive offerings from 42 brands, up from 24 the year before. The hot topic was battery electric vehicles as several were unveiled during the show. Wakefield hosted a reception the day before the show opened to the public to unveil the new logo for Castrol with remarks from Shannon Spano and Hasan Zobairi. The Barenaked Ladies were the featured performers during VIP Night
Last year, I wrote about the impact of inflation on auto part sellers and workshops. At that time, technicians and shops were finding it difficult to source parts at reasonable costs, citing it as their top pain point in a research study conducted by U.S.-based firm IMR Inc. Repair professionals were also uncertain about the future and did not see price hikes going away any time soon.
Latest Eucon data from the U.S. market shows the tide may be turning for parts pricing. After a staggering 20-point increase in aftermarket prices (on a base index of 100, calculated from millions of data points tracked by Eucon) between 2019 and 2022, price hikes appeared to be easing off by the end of 2023. Price changes remained flat in the second half of last year — way lower than the historically expected one-half to 1 per cent price quarter-over-quarter growth. On
the flip side, OE dealer prices were still climbing — moving up by nine points in 2023 alone.
Eucon expects aftermarket prices to remain flat — or even decline slightly — this year. OE prices will continue to see marginal increases in 2024, before evening out in the latter half of the year.
Many will sigh a breath of relief at this news, taking it as a sign that inflation is waning in the industry, the same way it is stabilizing across both the U.S. and Canadian economies.
But the flat numbers only paint half the picture of the pricing landscape. The devil is in the details.
As I have mentioned in earlier columns, the evolving retail landscape — along with the post-COVID experience — has completely changed how OEMs, retailers and suppliers price their parts. As unit growth begins to stall thanks to improving
"But rest assured, prices are moving up and down deep within each portfolio, allowing market actors to optimize and grow their revenue."
part quality and electric vehicle penetration, pricing has become a key lever in how industry players grow revenue and profit.
But customers will not tolerate constant price hikes. Companies have to balance their margin requirements with the market’s willingness to pay. As a result, they are adopting new pricing strategies. These novel approaches will keep competitors on edge, despite the relative stability in overall price changes.
So, what are some of these new strategies? Let's explore.
The most obvious change I see in the industry. The aftermarket — at all levels of distribution — has been traditionally slow in making price adjustments, beyond the typical promotions and sales offered by retailers.
At the top of chain (OEMs and suppliers), adjustments were — and, in many instances, still are — done once a year. Now, many competitors are moving to quarterly or monthly pricing action to make sure they are responding adequately to changing market conditions. Fast price actions also allow them to quickly roll back any downward or upward price changes that may impact sales and revenue.
The result? Infinite optimization. No profit opportunity or market share risk is missed.
price elasticity (the relationship between demand and cost), seasonal patterns, product type, channel to market and many others to create an ever-evolving price.
Value-based pricing — along with the added speed and depth — is hard to do with spreadsheets. As a result, many aftermarket stakeholders are rapidly adopting pricing software that allows them to automate pricing with pre-set rules and logic.
Algorithmic approaches allow competitors to make constant micro changes across their products These small actions, when aggregated across many companies, may make the market appear sluggish or flat.
But rest assured, prices are moving up and down deep within each portfolio, allowing market actors to optimize and grow their revenue.
Traditionally, aftersales pricing has been driven by A-parts — the big sellers.
Companies would monitor the top half of their portfolio and make any necessary changes. They would either leave the bottom half alone or simply extrapolate the changes downstream from A-parts, with some nuance added for category or market positioning.
But now pricing managers are digging into their B- and C-parts and making more targeted strategies for these products. For instance, B-parts (the mid-level sellers) can often be captive for OEMs, which means customers may be willing to pay higher prices for them as alternatives may not be readily available.
For aftermarket suppliers, these parts may not get much attention from rivals or customers. As a result, even small pricing changes could have a significant impact on volumes. While these revenue increments may be smaller than that generated by top-tier parts, they allow companies to get closer to their financial goals when minimizing changes to high-impact, volume sellers in a relatively flat market.
For the longest time, aftersales pricing managers simply used a costplus approach — prices based on landed cost and internal margin targets. In recent times, stakeholders adopted a combination of costplus and market-based strategy, which married profit targets with competitive positioning considerations.
Many companies are now implementing value-based actions. This strategy considers multiple factors: Customer willingness to pay,
Ryan Bruno has a long family history in this industry. He’s bringing his experiences growing up in the family collision business as well as time spent in other sectors into his role as the incoming chair of AIA Canada
By Adam Malik
If there ever was someone who grew up in the auto care industry, it’s Ryan Bruno. With a rich family history on the collision side of the automotive aftermarket, Bruno brings a unique perspective to his upcoming role as chair of the Automotive Industries Association of Canada.
His experience is deeply rooted in hands-on work from his formative years in the family shop to his broad experience across different sectors, such as banking, telecom and insurance, in areas that include policymaking and mergers and acquisitions advisory.
As the landscape of the automotive aftermarket continues to shift, Bruno is focused on leveraging his skills to foster change and innovation in this industry.
Bruno’s path to leadership in the automotive industry was anything but linear. Starting from humble beginnings in his family’s collision shop, which opened about 50 years ago, he learned the ropes of the business from a young age.
He got his first paycheque at eight years old. But he’ll admit that he wasn’t technically adept like the rest of his family.
“I have three brothers and a couple of them are a bit more technically oriented,” Bruno said. “They could fix a car — I couldn’t.”
He hung around the shop and helped out where he could. But he often found himself working in the office rather than on the shop floor. As time went on, Bruno learned how to negotiate with insurance companies and manage workflow. He found that side of the business more interesting than school. So he hit the pause button on education and actively started managing the family business.
Bruno’s father and three partners started CSN Collision Centres. He’s now the president of the company but he didn’t stick around for too long at first.
“I wasn’t a tradesperson,” Bruno said. “So I thought, ‘You know what, I should probably go back and finish my education.”
While he intended just to get a piece of paper saying he finished school and then return to CSN, he found all the things he’d learned in the collision business served him well in university, like working under pressure and with different stakeholder groups.
It turned out that he found the business world interesting. He had a stint with the Bank of Canada where he helped shape policy rate decisions and did M&A advisory in the banking world, working with private equity clients,
continued on page 18
and continuing in that area in the telecom industry. He then went to work for an insurer where he handled investor relations and broker investments.
Then Bruno got a call one day from one of CSN’s partners. They wanted to bring him back into the fold. For someone who grew up in the industry and being part of the company’s beginnings, he couldn’t say no to returning to his roots.
His journey underscores a theme prevalent in many aftermarket careers: The magnetic pull of the industry that often brings individuals back, enriched with broader experiences and new ideas.
“I think for a lot of people, when you’re part of this business, it’s part of you,” Bruno said.
It was always in his mind that he’d come back to the aftermarket — after all, that was his plan when he went back to school. He just didn’t think he’d go on a longer journey. And that journey is one that he’s thankful for.
“There was an opportunity to learn a bit more … before coming back,” Bruno said. “And it just had to be the right time and also the right opportunity and everything else.”
Returning to the auto care sector, Bruno brought a wealth of knowledge and fresh perspectives with him. He aims to keep looking at things from a holistic, big picture point of view, especially being the first AIA Canada chair with a collision-focused background in about a decade.
He didn’t understand the role AIA Canada played in collision until he got more involved with the group. In fact, he at first didn’t think there was a national association representing the collision industry. Bruno now understands that there is and has been one for a long time. He wants to spread the awareness of AIA Canada further.
“My assumption that the collision industry didn’t have a national association was incorrect. And the problem wasn’t that it didn’t exist — the problem was that there was not enough engagement from the collision industry with AIA Canada,” Bruno said.
And that’s important because there are many lessons the collision side can share with the mechanical side. It’s the collision repairers who generally see newer vehicles before they hit the aftermarket sweet spot, which is when they leave dealership bays after the warranty period for independent shops for maintenance and service. And it’s not uncommon for a repairer to do, say, suspension work. So they can come across tasks, issues and information that can help other areas of the industry.
“The aptitude is similar, sometimes the work is similar, but the market environment is very different,” Bruno observed.
Under his guidance, Bruno aims to bridge the gap between the mechanical and collision sides of the industry, fostering a more integrated approach to automotive repair and service.
“Why can’t you take something that’s evolved over here organically but take that concept and bring it to the other side, or vice versa?” he asked.
One year in the grand scheme of things isn’t very long to affect change. Instead, it’s about building on what his predecessors have
done and setting things up for the next person who fills the seat.
“It’s really just continuing down go down that path that we’ve been on,” Bruno said. “I would say not a ton of change but just continuing to make sure that things are continually progressing.”
Bruno is particularly passionate about tackling the industry-wide issue of labour shortage. He advocated for a strategic approach to attracting and retaining skilled labour, focusing not only on immediate solutions but also on addressing the root causes of the labour crisis.
“It’s a critical issue today — we’re not going to fix it today. But if we take the right steps today, we might be able to help it,” Bruno said.
It comes down to the ‘why’ of the issue. People say it’s not an attractive profession — why? Trades professionals are leaving the profession — why? And so on. By questioning the ‘why’ behind current challenges, he believes the industry could uncover deeper insights that can lead to more effective, long-term strategies.
For example, rather than looking at the ease of getting into the industry — there are programs, courses and training available — an issue might be the perceived standards of the industry that are turning people off.
Customers shouldn’t experience wildly different outcomes based on which shop they visit.
“Maybe what we need to do is we need to raise the bar in terms of standards,” Bruno suggested, emphasizing the importance of standardization and certification to elevate professional standards across the industry, thus improving consumer trust and safety.
The vast majority are doing things by the book as they should be but there’s a pocket that is not, he suggested. They’re tarnishing the rest of the good apples.
“Is that what is causing the lack of people coming in?” Bruno wondered. “So I think spending a bit more time to get to the root cause and understand, ‘What is the root cause?’ And what we might find is that, as an industry, maybe we actually have more control than we think in improving that.”
Could that mean a greater effort toward industry standards set by the industry itself? Standardization, Bruno argued, across all repair sectors could boost consumer confidence through consistent quotes and work quality. Mandatory certification programs and skills assessments may help elevate baseline competencies.
“Customers shouldn’t experience wildly different outcomes based on which shop they visit,” he observed.
This is something AIA Canada has been working on with the collision side in recent years. And it’s important. If the industry doesn’t take hold of setting standards, it could be left to outside parties to set them instead, Bruno warned.
He used environmental sustainability as another example of an opportunity for the aftermarket to decide for itself what works best, rather than regulators stepping in and creating their own with
disregard to how they may impact the aftermarket from top to bottom.
“If we lead the way on issues like reducing waste and energy use, we maintain control over our destiny,” Bruno explained.
This is where AIA Canada is well-positioned to provide guidance and best practices, allowing shops, distributors and jobbers to gradually implement profitable changes. Without co-ordinated industry action, Bruno warned external mandates could undermine competitiveness.
Bruno admitted he wasn’t all that aware of AIA Canada and its purpose until he joined the association. How many others are currently in the same boat he was?
It comes down to awareness and asking the industry how the group can help them, Bruno said. Whether it’s creating awareness of an issue, helping them not feel overwhelmed or identifying a business opportunity, AIA Canada can play a role for its members. The message needs to get out.
“Sometimes we need to push people. Sometimes we need to push ourselves,” Bruno said.
And relevance will be important with so much change on the industry’s doorstep. Bruno doesn’t see change as a challenge though. He sees everything as an opportunity.
“We often hear that, 'Today things are changing faster than they ever have,’” Bruno said. “But my view is actually to look at it a bit differently and say, ‘Things are changing at a slower pace today than
We often hear that, 'Today, things are changing faster than they ever have.’ But my view is actually to look at it a bit differently and say, ‘Things are changing at a slower pace today than they ever will again.
they ever will again.’”
So the industry needs to embrace change. “Because if we’re not embracing that change, we’re resisting it,” Bruno said.
Take electric vehicles. Rather than dwell on the challenges they present, he sees the business opportunities that are being created, such as higher-margin jobs and cleaner work.
Even in gas-powered vehicles, he pointed to all the electronic components they have these days. “I don’t think there’s too many newer cars where you’re doing engine overhauls,” Bruno said. There’s opportunity to expand service offerings.
He brought up operational changes that can benefit a shop, such as cutting back on energy usage — if a shop can find ways to be more environmentally friendly, the return on investment can be great. Plus, to his earlier point, doing so would get the industry ahead of government requirements that come down the line.
“With all these changes, there’s new opportunity,” Bruno said. “And I think it’s an exciting time.”
“YOU
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
Bestbuy Distributors celebrated 70 years in 2023.
The SunSplash incentive trip has built lasting bonds
One of the core challenges facing jobbers today is how to enhance the business using strategies and tactics that improve their value proposition and set them apart from the competition in their market.
Over a lifetime of being around a family business and a group of large jobber stores, I came to see that the business, as many others like ours, had the right vision in terms of building relationships and offering great customer service. However, it needed to go through a complete digital transformation to really be able to use data and digital systems to drive actionable insights within the business.
Some key examples of this included setting up IP phone systems with advanced analytics and reporting to monitor customer service metrics when calling our jobber stores.
While online and parts ordering integrations are increasingly utilized within the value chain of the jobber store, a significant aspect of the business, particularly for non-application parts, still involves shops calling the store and speaking to the parts counter staff to source parts and supplies.
In my experience, leveraging an IP phone system with advanced reporting and monitoring capabilities enabled us to establish KPIs and operate at a high level of service. We regularly monitored metrics such as dropped calls, average answer times, calls handled by each counter person, inbound and outbound calls and so on. This enabled us to distinguish our service from the competition and uphold high levels of accountability and transparency within the business.
Another example was the implementation of SMS to CRM interfacing, allowing clients to text counter staff pictures and ask questions regarding service. One major complaint we identified was that when we experienced late deliveries, our dispatch would call the shops, which often aggravated them. Upon surveying our clients for service improvement ideas, the feedback overwhelmingly favoured text messaging as a better communication option. As a result, we
For many jobbers, this dilemma arises: Should they wait for the warehouse distributor or their banner to provide support, corporate innovation or resources, or should they rely on their own entrepreneurial spirit to find solutions and drive these types of changes?
built a system to streamline the process and enhance the customer experience.
For many jobbers, this dilemma arises: Should they wait for the warehouse distributor or their banner to provide support, corporate innovation or resources, or should they rely on their own entrepreneurial spirit to find solutions and drive these types of changes?
At the shop level, there are many resources, including 20-groups — a group of shops that generally don’t operate in the same geographical region but work in the same industry — banners and franchise networks that provide these types of support mechanisms.
At the jobber level, however, these types of support mechanisms are much more limited.
There are generic CEO groups that jobbers can join to network with other professionals. The jobber business, like many others, is complex. My advice is to find these support resources as it’s crucial to gain insights into the best business practices employed by other professionals within their respective industries.
I had the opportunity to spend close to a decade with UAPNAPA as an associate member with my stores and can attest to the transformational shift and resources that NAPA provides jobbers, including accounting services, digital systems, and retail services.
While the banner and business system support were critical in helping us modernize our business, I still believe in the power of a 20-group for jobbers to address the isolationism that many face. Many operators spend the majority of their time managing from within the walls of the business.
This type of support mechanism can bring progressive ideas on various business topics, including human resources, insurance, tax, and succession planning from outside the confines of their business.
Active in more than 130 countries, TotalEnergies puts all facets of sustainable development at the heart of its projects and operations for the well-being of the population. Established in Canada for 15 years, the company has earned a reputation in the Canadian market for the quality of its mechanical lubricant solutions. Their Montreal plant manufactures and distributes a line of high-quality lubricants—engine oil, transmission fluid, universal tractor transmission oil, hydraulic oil, greases, etc.—for passenger cars and heavy-duty and industrial markets, designed to meet specific requirements of industries and consumers across Canada.
One of TotalEnergies’ value-added services is its local lab. It serves to provide its clients with real value-added services and expertise. Lubricants used in its client’s equipment can be analyzed on site and provide valuable information such as warning signs for potential issues that can lead to major failure and issues for a customer’s activities. Its LabServices offers a holistic analytical service for new and in-service lubricants. The program is designed for customers operating a fleet of vehicles and also for a wide range of industrial equipment. This is a definite value-added service to help their customers across the country achieve substantial cost savings and efficiency in their processes.
Local production, transportation and logistics, customer service and nationwide presence are what set TotalEnergies apart. Their MyLubPortal, an advanced 24/7 solution, is a centralized service that saves clients from having to search multiple places to find the information they’re looking for. Available on desktop or mobile, it gives clients access to all the latest products, promotions, and news from TotalEnergies Canada, track orders, browse product catalogues and technical datasheets, and get lubricant recommendations. On the logistical and transportation side, TotalEnergies puts a lot of resources into establishing the best delivery schedule for a vast country like Canada, where the weather is very unpredictable. Its transportation and logistics coordinator optimizes client delivery schedules to ensure they get the right products at the right time. TotalEnergies also uses intelligent smart tanks, which uses a pressure sensor to measure the level of contents to remotely view
and manage the stock level of tanks via a 24/7 portal. They’re a costeffective solution supported by sophisticated devices and specific communication networks
In its centennial year, TotalEnergies Canada stands at the forefront of pioneering innovative solutions. TotalEnergies is committed to growing its Quartz Auto Service centres, their latest initiative to provide a stateof-the-art facility with the promise to revolutionize the automotive service industry in the Canadian market. It will provide unmatched quality and service by trained professional teams in partnership with independent mechanical shops. With a focus on efficiency, reliability and sustainability, Quartz Auto Services offers a range of services designed to keep client vehicles running smoothly while reducing their environmental footprint. For more information on TotalEnergies Canada, visit totalenergies.ca.
Vehicle age shows no signs of slowing down.
Motor oil needs will continue to vary, forcing distributors to have many options available
By Adam MalikVehicles are getting older. And that’s not set to slow down for at least the next couple of years.
As average transaction prices reach around $53,000 and new vehicle supply improves yet remains below ideal levels, Canadians are retaining their vehicles for extended periods. As a result, jobbers must stock a broader range of parts, components and fluids to accommodate a wider age range of vehicles.
“Parts proliferation in the car and light truck aftermarket will soar for the foreseeable future, increasing inventories and the logistical burdens on manufacturers, distributors, retailers and installers,” noted Lang Marketing in its recent report, Aftermarket Parts Proliferation Explodes.
As average vehicle age grows, the vehicle age range is extended for which aftermarket inventories need to supply.
“The growth of older vehicles [is] shifting mileage from newer to older cars and light trucks,” Lang reported. “This increases the need for older-vehicle parts to remain in inventories for an extended time.”
But this situation isn’t only growing the number of parts needed to remain in inventories. It’s adding new ones, such as motor oil options that can handle older, higher-mileage vehicles.
“With consumers being price-conscious, they are keeping their vehicles longer,” explained Sean Nguyen, Pennzoil’s technical scientist and automotive lubricant specialist. “Thus, they are accumulating more miles in these vehicles. Shop owners need to have available synthetic high-mileage oils available for these highmileage vehicles.”
Lenny Levac, vice president for sales in Canada for Liqui Moly, pointed to motor oil additives that can rejuvenate aging seals.
“This can be used with any new motor oil when doing a new oil change,” he told Jobber News. “Additionally, to this, regular oil changes will help this older vehicle, make it longer.”
Suppliers are committed to working with their distribution partners to ensure they’re up to date on the latest offerings. So when a shop calls looking for a recommendation or a specific product, the
jobber will know what to give them.
“We are working closely with our distribution partners to foster an effective partnership that caters to the needs of customers,”
Nguyen told Jobber News. “We are committed to equipping our distribution partners not only with the correct range of products for their vehicles but also with essential knowledge and expertise in motor oil.”
Levac stressed the importance of listening to the market and keeping abreast of changes.
“Being so active in the market helps tremendously see where the DIY is going and the pros. With our offering we see both segments growing here,” he said.
One thing being seen is consumers in search of cost savings.
“Customers do have finances top of mind here in Canada,” Levac said. “With costs continuing to rise in so many aspects in Canada, we need the most value we can find out of the products we purchase.”
And oil service is one of the most important and basic needs for a vehicle. Customers may look to bypass this.
“While consumers may be tempted to extend their drain intervals to stretch their buying dollars, we advise against it,” Nguyen said.
Furthermore, Levac added, it’s important for jobbers and shops to also engage with their suppliers to ensure they’re getting what they need.
“The relationship between us and our customers and partners is so profound and sustainable that we only need to continue on the right path to be successful,” he said.
There is ongoing collaboration with the industry, noted Nguyen.
“In the upcoming months and year ahead, we have several opportunities to collaborate with our distribution and shop partners,” he said. “This includes ensuring that their counter staff is well-versed in essential motor oil information, providing education regarding the upcoming changes in 2025 with the new GF-7 specification, and gaining insights into consumer hesitancy and resistance towards their purchases.
MEMA Aftermarket Suppliers Global Summit
February 1-2, 2024
Hollywood Beach, Florida
Global automotive aftermarket leaders gathered in south Florida to discuss key issues taking place in the industry at the MEMA Aftermarket Suppliers Global Summit. They focused on global trade, international relationships, changing demographics, strategy and more. The event marked the start of Tara Cevallos’ role as chair of the Overseas Automotive Council, which helped put on the event. Attendees heard from MEMA Aftermarket Suppliers president Paul McCarthy, Toyota’s Leila Afas as well as other top advisors and experts.
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
Purolator Filters, a division of Mann+Hummel, announced the company will now provide its product application catalogues with filtration information for Mann-Filter, Purolator, WIX products and more all online. The catalogues can be accessed at: www.mannhummelcatalogs.com/products. These catalogues will be updated as new offerings and brands become available. Users can view, download, and print a copy of each catalogue for free. The website will continue to offer professionally printed catalogues to customers at a minimal fee.
www.mann-hummel.com
Dana Incorporated has introduced the Ultimate Dana 60 rear semi-float axle and Ultimate Dana 44 AdvanTEK front-drive unit as a premium performance offering for the Ford Bronco SUV. The Ultimate Dana 60 features Spicer chromoly steel axle shafts, Spicer ring and pinion gearing, a nodular iron diff cover, and heavy-duty brackets. The Ultimate Dana 44 AdvanTEK frontdrive units are built to handle the Bronco SUV’s high-torque engine, provide increased strength and durability, and offer a choice of gear ratios for optimum performance when upgrading tire size and other driveline components, such as half shafts.
www.danaproparts.com
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 from BMW, Volkswagen, Audi and Volvo from 2016-2021. The new calipers are direct OE replacement parts designed to the manufacturers’ OE specifications. Application coverage includes Audi A3 Quattro, Q3; BMW 228i Gran Coupe, 228i xDrive, i3, i3s, X1, X2; Mini Cooper, Clubman, Countryman; Volkswagen Arteon, Atlas, Tiguan, and the Volvo XC90. www.ate-na.com
KW Automotive has introduced a new coilover suspension for the BMW 5 Series Touring (G31) equipped with rear air suspension. Much like the BMW 6 Series GT (G32), this suspension manufacturer has specifically tailored the rear shock absorbers of its coilover suspension to suit vehicles with air suspension. Under the component approval process, the BMW 5 Series Touring (G31) can be lowered by 30 to 55 millimetres at both axles. The KW V3 coilover suspension is available for BMW 5 Series Touring models with rear-wheel drive.
www.kwsuspensions.net
SKF has added a new lineup of timing chain kits. They come packaged with all components needed for a complete engine timing chain replacement and feature an anti-friction chain for maximum strength and durability. The kit’s components include sliding guides, chain tensioners and sprockets. It’s designed with high-strength, heat-treated steel and the latest wearresistant technology to increase longevity. The timing chain prevents unnecessary friction or slippage between the chain and sprocket teeth. The kits are highly customized to perfectly match vehicle specifications and facilitate faster replacement. www.skf.com
SKF has released a new smart air purification system that upgrades most vehicles’ factory-installed cabin air filters. This provides a higher level of air purification to filter impurities, such as pollen, smoke and particulate matter from wildfires and heavy traffic. The system provides a constant flow of clean, fresh air, reduces carbon dioxide levels and flushes out odours, airborne viruses and bacteria. The particle-charging technology gives airborne particles an electrical charge as they enter the system, making them “stickier” so they get trapped more effectively in the filter..
www.skf.com
www.vlcom.com
Now available from Epicor is a new B2B e-commerce platform to serve automotive replacement parts distributors and their customers. The cloudbased Epicor Commerce for Automotive (ECA) solution is designed to help automotive parts distributors and other users increase sales and customer satisfaction by providing up-to-date, customer-specific part pricing and availability. Major features of the new B2B eCommerce platform include self-service account management, multi-seller support, easier lookups, third-party integrations, buy again functionality, promotions management and quote builder. www.epicor.com
OTC announced that Anyline has launched its Tire & Vehicle Analytics platform. It delivers realtime, actionable insights for automotive service providers, fleet operators and OEMs. Tire & Vehicle Analytics allows tire sidewall, tire tread, VIN, license plate, driver’s license and odometer scans to be tracked, analyzed and correlated with external data sources, to provide fresh insights and help to identify the 27 per cent of all tires on the road which are dangerously worn out. By comparing the wear of various tire brands across different vehicles and geographies, recommendations can be made about the optimal choice of tire for any set of circumstances
www.anyline.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
