AFTERMARKET EMPLOYMENT REBOUNDS

THE AUTOMOTIVE AFTERMARKET led the entire automotive industry in positive employment change last year compared to the year before, according to DesRosiers Automotive Consultants.

Employment levels in the automotive industry as a whole are up, narrowing a gap that emerged at the start of the COVID-19 pandemic in 2023. Still, the industry is about 21,000 jobs below pre-pandemic levels.

But breaking it down by segment, the aftermarket has essentially recovered, DesRosiers noted. Automotive parts and accessories stores were up 5.4 per cent at the end of 2022 compared with December 2021.

Just behind was the automotive repair and maintenance segment, which saw a 4.6 per cent increase for the same period.

“The overall picture for employment in the auto industry was positive for 2022 despite some setbacks in certain segments,” said Andrew King, managing partner at DesRosiers. “Whether this employment recovery continues unabated throughout the broader economic uncertainty of 2023 remains to be seen.”

Other segments that saw an increase included dealers (2.3 per cent) and parts and accessories manufacturing (1.2 per cent) and motor vehicle manufacturing (0.3 per cent).

Amazon Threatens To Gain Young Customers

JOBBERS LOOKING for growth among the young shopper segment are facing a mammoth competitor: Amazon.

The online shopping behemoth has long been seen as a threat. But a new report is warning that future customers of the aftermarket will likely turn to the retailer before their local option.

The report Millennials Put Amazon in Driver’s Seat from Lang Marketing observed that Millennials revere the platform. American Millennials ranked it as the most relevant product/ service brand, ahead of Apple, Google, Nike and Starbucks, to name a few.

“Amazon’s top ranking among Millennials has significant implications for its future sales of automotive parts and repairs,” Lang’s report said. “Amazon has shown a growing interest in the aftermarket as a foothold for gaining access to the massive, trillion-dollar mobility market of the future.”

Millennials range in age from their early 20s to early 40s. Lang noted that Millennials will be the key generation driving the economy for the next 20 years. Baby Boomers will soon fade from the scene and Generation Z consumers await the ability to gain economic traction.

Relevance in the market is the top factor in pegging a brand’s success and impact, Lang observed.

“Millennials have grown up with Amazon, and it has become their go-to buying source for all kinds of goods and, increasingly, services,” it added. “As digital natives, Millennials have not known the internet without Amazon.”