Jobber News - November 2024

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Motorcade St. Catharines

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.

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A CUSTOMER-CENTRIC APPROACH

It’s time to tip our hat and recognize the top jobber in Canada this year. The 2024 winner of the Jobber of the Year Award is Motorcade’s St. Catharines, Ontario, branch.

The location had a pair of shops nominate them the last two years, and that speaks volumes to the judging panel. When your customers are so passionate about the job you do, it means you’re doing something right. It speaks louder than a vendor or business partner because the customer is relying on their parts distributor to drive their success.

And upon seeing how the St. Catharines branch operates, it’s easy to see why they have such a passionate customer base.

“Your customer is the most important part of your day," manager Shannon Black told me.

It's a simple concept, really, but one that can easily get lost in the daily hustle and bustle. It’s easy to slip into a habit of treating each customer as a transaction and lose that little bit extra on the extra customer service side of things. In a worst case, the customer is seen as little more than a necessary evil, to be tolerated in the pursuit of profits.

But that’s not happening under Black’s watch. By focusing solely on serving the needs of wholesale clients, they’ve been able to develop a deep understanding of their customers' pain points and needs.

To further emphasis this, the store only serves the needs of its wholesale clients. This allows them to develop a deep understanding of their customer’s pain points and needs. It's a laser-sharp focus that stands in contrast to a one-size-fits-all approach of some other jobbers who — to the frustration of some of their customers — will treat the customer off the street in the same manner as the professional.

This commitment to building long-term relationships, rather than short-term gains, has solidified their reputation as a trusted partner in the industry. It's a mindset. Motorcade's St. Catharines branch team is laser-focused on the customer with the onhoist order. Parts in the warehouse are ready to go in six minutes. They made multiple daily runs to Toronto to get the more unique items.

They also have a strong rapport with their customers, with many staff members having put in decades of tenure, which has helped build deep familiarity.

"My main business philosophy is that that person on the other side of the phone is your best friend," Black says. "They are the person that pays your paycheque. They take care of us. We need to take care of them."

It's a philosophy that should serve as a model for the entire automotive aftermarket industry. By putting the customer first, Motorcade has not only built a thriving business, but has also set a standard for what customer service in the auto care sector can and should be.

President & Managing Partner | Delon Rashid

Head of Sales & Managing Partner | Peter Bulmer

Corporate Office

48 Lumsden Crescent, Whitby, ON, L1R 1G5

They’re an example all parts distributors should follow — the entire industry would be better for it.

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WHY THERE’S A ‘SENSE OF URGENCY’ AROUND INDUSTRY CHANGE

We are in a time of transition, shop owners need to keep an open mind, they need to learn what motivate the new generation and adapt the work environment to make it more appealing to them. Just like we did when we first started, they are looking for opportunities to build a future on, and our old ways no longer offer what they are looking for. We need to listen, learn, and adapt to the new reality.

U.S. AVERAGE AGE CONTINUES ITS RISE

Smart educated consumers hold on to their vehicles longer because there are much more important expenses in life than a car. I’m surprised that Americans are holding onto their cars longer than Canadians.

Rob Nurse, Bob Nurse Motors

WHAT’S YOUR BRAND REPUTATION WORTH? NOT AS MUCH AS YOU THINK

When a new owner takes over in an existing business, he and his staff may not relate well with the current client base. I’ve seen it even when service writers change and the client doesn’t get the exact feeling they got before. The value in a sale is less because of that but in some situations, it may be better. The phone number, email address and websites along with social media imprint already out there and maybe what will be transferable and produce a new owner some instant clients. The location may be a real good one and if the current operator secured a good long affordable lease or owns the building in a good traffic area then they can get monitory value for that forward thinking . A new owner needs to look at all the things that can produce cash flow and the sooner the better. Taking over someone’s 30-50-year business does have a value if the old owner has made the name a household name or landmark.

Rick McMullin, Ricky Ratchets

HOW CONSUMERS SEE DEALERS COMPARED TO INDEPENDENTS

People just want honest competent people fixing their cars. The longer one stays in this industry the more competent they should become. We as an industry for both dealership and aftermarket sectors have to do our best not to put the sale above the customers' best interest. But it happens all the time, regardless of it happening on purpose or by incompetence. You can not sell $2,500 worth of

suspension work with new tires on a vehicle with the frame out of it. But what happens if the tech missed the frame being out of it before the repair? He didn’t do it on purpose. It can easily be done, even if your shop has routine DVI’s in place.

Rob Nurse, Bob Nurse Motors

REPAIR DEMAND RISES AS OUTLETS FALL

Unfortunately, the old saying, ‘If you want to play you are going to have to pay’ applies in this scenario. Equipment costs and tech costs have increased which gets passed on to the consumer. Shops that chose not to keep up with technology are falling off as they lose customers. “I am not equipped to do the work” drives customers away to find a shop that can look after their vehicles. Vehicles are very complicated now basically eliminating the DIY sector. DIY people are finding out that “Google Garage” is not a reliable source of information anymore. Only the strong will survive in the auto service business.

Bob Ward, The Auto Guys

THE IMPORTANCE OF BEING CONVENIENT

This concept may work if the shop is lacking business or is slow. But during the busy time, you do not want your customers to get comfortable and expect you're going to drop everything for them every time. Are we going to actually take a tech off a $2,000 job when the bays are full to do an oil change on the lot in the rain with a jack and axle stands? I don't think so. Remember we need to educate our customers! They need to be taught that cars are complicated and waiting for a service to be completed is not practical.

Once again, we continue to underestimate the consumers' ability to learn and adapt. The most unprofessional thing a shop can do is bump one vehicle to service another without an appointment. Firstly, we need to eliminate the term oil change it is a thing of the past. Secondly, we need to eliminate 15 minutes from all automotive services. Because of extended service intervals, a vehicle needs more than an oil change. It may require tire rotation, filter checks, brake inspection etc. We need to educate the consumer and the bean counters who invest in quick lubes it takes more than 15 minutes if you are actually servicing vehicles properly. A vehicle owner’s lack of planning does not constitute an emergency for a shop. Good shops use a scheduling system for maximum shop efficiency which also is in the best interest of the vehicle owner. The logic behind that article speaks volumes as to why our industry struggles to get ahead.

Bruce Eccles, Eccles Auto Service

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Honouring the Past

The Aftermarket Guild, the refreshed version of the Automotive Fellowship Society, got the band back together and added more. The group opened its membership to all genders, welcomed in several new members and opened up a Hall of Fame wing to honour Canadian industry trailblazers. Eleven members were part of the inaugural induction. See the full list and recap by scanning the QR code

CANADA OUTPACES EXPECTATIONS ON EV, PHEV PURCHASES

CANADIAN CONSUMERS ARE doing their own thing when it comes to buying battery electric vehicles and plug-in hybrids.

New data from Statistics Canada highlighted a significant increase in zero-emission vehicle (ZEV) registrations, reaching 12.9 per cent of all new vehicle registrations in the second quarter of 2024.

Stats Can noted that 65,733 new ZEVs were registered in Q2, a 30 per cent increase from the previous quarter. When hybrids are included, more than 106,000 low-emission vehicles were added.

Meanwhile, data from S&P Global Mobility line up with this strong growth. Its Q2 2024 Canadian EV Information and Analysis showed a ZEV market share increase, now sitting at 13.4 per cent (BEVs: 9.9 per cent; PHEVs 3.5 per cent), up from 12.5 per cent in the first quarter.

S&P’s findings show that internal combustion engine registrations continue to trickle downwards with ICE vehicles making up 75 per cent. Still a dominant number but down from 82 per cent at the start of 2023.

“Comparing ZEV penetration between Canada and the US, Canada continues to outpace its southern neighbour,” S&P’s report said. “Over the past four quarters, the US has maintained an average ZEV penetration rate of 10 per cent, while Canada proudly stands at 13 percent”

S&P expects that ZEV market share will reach 16 per cent by the end of 2024, climbing to 21 per cent in 2025 and 30 per cent by 2026.

“Nonetheless, achieving the 2024 forecast could be challenging,” it noted. “Considering

historical volumes, seasonality, and industry trends, a more conservative projection pegs 2024’s final ZEV market share at around 15 per cent.”

It also pointed out that long-term projections face additional clouds as Quebec will begin the phase-out of ZEV incentives starting next year.

“This reduction from $7,000 to $4,000 for BEVs and from $5,000 to $2,000 for plug-in hybrid electric vehicles (PHEVs) could dampen demand as cost savings for consumers diminish,” S&P’s report said.

CONSUMERS LACK DATA ISSUES UNDERSTANDING

A RECENT PAPER HAS found that Canadians have little knowledge of data access and control in their vehicles.

Fewer than a third (29 per cent) of drivers say they clearly understand who has access to the data their vehicle produces, while most (63 per cent) want to know who controls that data, according to the study, Data dynamics: Exploring vehicle owners’ data awareness, ownership and sharing, published last week by AIA Canada.

The study highlighted the growing awareness of the amount of data consumers leave behind as everyday actions — such as shopping, watching videos online and driving habits — produce data valuable to stakeholders for various purposes.

In addition to wanting more clarity on who has access to their vehicle’s data, more than half (51 per cent) of respondents said they want a better understanding of how much data is produced. Meanwhile, 39 per cent said they wouldn’t know where to find their vehicle’s data.

Transtar hosts open house

Transtar Aftermarket Solutions hosted shops owners and technicians at its Mississauga office for an open house on September 25. They were able to chat with vendors about their products.

Three-quarters of respondents believe the vehicle owner should own the data. Only 10 per cent said the vehicle manufacturer is entitled to it, and just four per cent said the company that developed the technology collecting the data should have ownership.

More than three quarters (78 per cent) of respondents believe vehicle manufacturers have a responsibility to do more to educate owners about vehicle data ownership.

The report is free for AIA Canada members or $199 for nonmembers.

NEW,

USED PRICES ON DIFFERENT PATHS

THE CANADIAN AUTOMOTIVE market has experienced notable shifts in both the used and new car segments as used car prices continue to soften and new car prices eased their upward trend over the last few months.

Starting in the third quarter of 2023, the demand for used cars began to soften year-over-year, the AutoTrader Price Index for June reported. Along with the decrease in demand, an increase in used car supply — credited to strong new car sales and trade-ins — has led to a decline in used car prices. In June 2024, the average used car price dipped by 1.1 per cent from the previous month, settling at $36,342, an 8.3 per cent decrease compared to the same period last year.

That’s a higher decrease than reported by DesRosiers Automotive Consultants, which reported a 4.5 per cent drop in purchase price of passenger vehicles in June 2024 compared to June 2023.

New car prices, meanwhile, have shown stability since the beginning of the second quarter of 2024. Average new car prices in June were $66,807, a 0.8 per cent increase year-over-year.

AutoTrader noted that the stabilization of new car prices is thanks to manufacturers bringing back incentives, including more competitive interest rates, making new vehicles more affordable. In June, AutoTrader reported, interest rates on new car loans dropped to 5.3 per cent, down from 6.2 per cent in November 2023.

QUALITY THE PROS COUNT ON.

And interest rate cuts have helped as well. As more cuts are expected — two or three more before the end of the year — AutoTrader expects to see a boost in sales in the second half of 2024.

IMPACT OF STRIKES AT PORTS

WHILE A TENTATIVE DEAL was reach on wages, the union representing the International Longshoremen’s Association allowed discussions around automation and benefits have been extended to January 15.

Still, the impact of the multi-day strike was felt. Analysist reported a backlog of ships waiting to unload thousands of containers of cargo, containing billions of dollars in goods.

As the strike kicked off, the U.S.-based Auto Care Association warned to major disruption to the aftermarket industry. It noted that estimates show that a day of disruption takes five days to recover. The group also stated that almost a quarter of aftermarket parts come through the East and Gulf ports.

“Each day that this strike continues, not only does our industry lose out on hundreds of millions of dollars in business, but the nearly 300 million Americans who drive are more at risk on the road as access to

service and repair of their vehicles diminishes,” Auto Care Association president Bill Hanvey said just after strike action was put in place.

The ILA, representing U.S. dockworkers, rejected the United States Maritime Alliance’s (USMX) final proposa in early October, kicking off their first coastwide strike in nearly 50 years. Picket lines were set up at waterfront facilities, affecting all Atlantic and Gulf Coast ports.

Meanwhile, In Canada, the Port of Montreal saw its own labour unrest. Workers at the Viau and Maisonneuve terminals, which account for 41 per cent of container traffic, went on a three-day strike starting Sept. 30, halting operations at two of the port’s busiest terminals. The Syndicat des débardeurs du port de Montréal (SCFP) union said it was frustrated over failed mediation efforts, saying their efforts to avoid the strike “have not borne fruit.”

STIGMA STRONG FOR WORKING IN TRADES

GENERATION Z REMAINS hesitant to pursue blue-collar careers due to societal stigmas and misconceptions, according to a new report.

The Annual Blue-Collar Report: Gen Z and the Trades Need Each

Other found that Gen Z is wary of blue-collar careers, even as these jobs offer stability and growth. It looked into how Gen Z navigates education and career decisions, highlighting the need to overcome stigmas associated with blue-collar careers.

According to the report, 76 per cent of Gen Z respondents agreed that a stigma exists around attending vocational schools instead of pursuing a traditional four-year university degree. It also noted that many Gen Z members are interested in blue-collar careers but they just don’t realize it yet.

One-third of respondents believe white-collar jobs are less stable today compared to their parents’ generation, and 41 per cent worry that artificial intelligence will reduce future job opportunities.

Despite these concerns, Gen Z identified attributes commonly associated with blue-collar jobs, such as flexible work hours (73 per cent), job stability (61 per cent), and overtime pay (58 per cent), as appealing.

More than half (51 per cent) of respondents cited family as the most significant influence on their career decisions, yet 61 per cent said their parents have not discussed vocational school as an option.

Furthermore, only 17 per cent reported receiving information on the benefits of vocational training, a figure significantly lower

than for bachelor’s degrees, community colleges, military service and entrepreneurship.

CONCERN OVER RETAIL SALES DATA

JUNE’S AUTOMOTIVE RETAIL sales data revealed notable declines across various segments, including those in the aftermarket, raising concerns within the industry.

DesRosiers Automotive Consultants (DAC) reported a “worrying” drop in automotive retail sales for June, with declines observed across multiple segments.

New vehicle dealers led the way with an 8.6 per cent decrease in sales compared to the same month last year, while used vehicle dealers saw a 6.1 per cent decline.

The aftermarket also saw a significant drop-off. Automotive parts, accessories and tire stores reported a 7.6 per cent decrease in sales for June 2024 compared to June 2023. DesRosiers noted that even though monthly data can be volatile, the scale of the decline is alarming, especially considering the impact of the CDK software outage that affected the industry in June.

reliable

INFLATION DRIVES UP AUTO MAINTENANCE COSTS IN CANADA

CANADIAN VEHICLE OWNERS are facing rising costs for maintenance and repairs as inflation continues to impact the automotive aftermarket.

The J.D. Power 2024 Canada Customer Service Index—LongTerm (CSI-LT) Study found that the average cost of a dealership visit has climbed to $465, up from $432 a year ago, a 7.6 per cent jump. Similarly, visits to independent shops have increased, but at a lower rate to $273 from $262, up 4.2 per cent.

Macro-economic conditions and higher interest rates are not only driving up costs but also prompting owners to keep their aging vehicles longer. According to the study, 40 per cent of visits to dealerships and 24 per cent of visits to aftermarket shops were for repairs, compared to 31 per cent and 21 per cent, respectively, in 2021. This trend, J.D. Power noted, indicates that more owners are choosing to invest in repairs rather than purchasing new vehicles.

Dealerships continue to dominate the auto service and repair market, holding nearly half (48 per cent) of the market share. Independent shops and quick lube locations capture 27 per cent and 11 per cent, respectively.

Pavindeep (Pav) Ghangas is now part of the Western Canada sales team with Wakefield Canada. He is responsible for the Lower Mainland and Vancouver Island territory.

Wakefield Canada added Patrick (Pat) McCrea to its Western Canada sales team, responsible for the traditional automotive and commercial/heavy duty dealers and fleets.

The Automotive Parts Services Group announced that Jeff Koviak will take over as CEP at the start of next year, replacing the retiring Larry Pavey.

Curtis Goodwin will become VP of Alberta and Saskatchewan stores at Fountain Tire. He was most recently general manager for the same region.

Fountain Tire named Nason Higinbotham as VP of its stores in B.C., Manitoba and Ontario. He was most recently the GM of the company’s B.C. and Yukon stores.

Yves Richard is now VP of supply and wholesale at Fountain Tire. He also chairs the board of Goodyear’s Canadian Commercial Tire and Service Network.

On the Road

Bestbuy Distributors Buy & Sell

September 15-18, 2024

Richmond, B.C.

The Vancouver area played host to the Bestbuy Distributors Buy & Sell event where shareholder members and vendors got together for the annual event. Things kicked off with a welcome reception at the River Rock Casino & Resort, the home base for the event Attendees networked with each other for the night on the resort’s marina as the sun set. The next day featured different activities for the group. One set headed to the Richmond Golf & Country Club while the other took a day tour through the region. After a day of meetings, the whole crew headed to Grouse Mountain for the group night out. The event wrapped up after another full day of meetings.

Stats that put the North American automotive aftermarket into perspective

10.4%

The first half estimated increase in new vehicle sales in 2024 compared to the same time in 2023. Subcompact SUVs led with a 47.6% increase.

DesRosiers Automotive Consultants

Costs to repair EVs in Canada are higher than ICE vehicles ($4,958), plug-in hybrids ($5,665) and mild hybrids ($5,302).

Mitchell

11%

the same time in 2023. Ontario dropped 14%; Quebec went

36%.

Équité Association

$273

The average cost of a visit to an independent shop rose 4.2% in the last year. A trip to the dealer cost $465, up 7.6%.

J.D. Power

$6,534 61% $66,807

Most of Gen Z have not had a conversation with their parents about attending a vocational school and a career in the trades.

Jobber

Average prices for new cars jumped 0.8% year-over-year in June. Meanwhile, used prices dropped 8.3% to $36,342.

AutoTrader

62%

The number of Canadians unaware that inflationt pressure should be measured when tires are cold, increasing to 69% among younger drivers.

Tire and Rubber Association of Canada

The Auto Care industry is expected to grow 5.7% in 2024 after growing 8.6% in 2023. It’s predicted to reach $617.3 billion in 2027.

2025 Auto Care Factbook

1,380,879

Ford led the way in recalls in the second quarter of 2024. For the first half of the year, 14 million vehicles in total have been recalled.

BizzyCar

Atlantic Canada saw an increase in vehicle thefts in the first half of 2024 compared to
down

THE RETURN OF THE COMMUTE

Will the service business boom as more Canadians start driving for work?

Work from home is dead. Long live work from home.

The above statement is of course an exaggeration. Even in 2024, many of us are still managing our business meetings in pajamas.

But recent data from Statistics Canada shows that more Canadians are commuting this year. About 16.5 million people headed to work by mid-year, up 3.7 per cent for the same period in 2023. This number has been steadily increasing since the post-pandemic lows of 2020 and 2021.

Currently, only about one in five Canadians are mostly working from home. The number is still higher than 2016, when less than one in 10 Canadians were staying put, but significantly lower than 2021.

More significantly, commute times are back up across most major cities, close to levels comparable to 2016. The national average for the first half of the year was 26.4 minutes — primarily driven by commutes made in a car or a truck. The stats also show that longer commutes (one hour or more) are on the rise as well.

Overall, every number points to a significant increase in vehicle kilometres travelled — the strongest indicator of the health of the automotive aftermarket. As more companies mandate return to work, or at least more days in the office, the trend will only continue to grow.

This shift holds the usual benefits for the aftermarket. More vehicles and longer commutes directly equal to wear/ tear, regular and preventative maintenance, towing services and so on. But there are a few things to consider for success in the post-pandemic reality. Also, despite more mileage, there might be confounding factors that may keep demand more depressed than normal.

The Canadian economy poses the biggest threat. Financial hardship generally equates to reduction in vehicle kilometres travelled, but currently we find ourselves in a strange situation. Unemployment rates are high and consumer spending is low, but people are driving more.

Will drivers delay or abandon their regular maintenance activities? Faced with an emergency repair, will they choose to work from home for more days, look at alternative means of transport and defer the repair? Whatever the outcome might be, it is possible that the continuing economic climate may dampen the expected service boom.

I think there will still be enough dollars to go around but part stores and service shops might have to get a little creative to attract more customers. Here are some strategies to stand out from the rest:

Offer time-based discounts

Hybrid work is here to stay, which means most office workers spend at least two-three days per week in their home office. These customers may have the flexibility to get repair or maintenance work done on a regular day during regular hours and not necessarily wait for after-hours or on the weekends.

Service shops can attract these vehicle owners with middle-ofthe-week deals (think “a buck a shuck” oysters or “happy hour” drinks offered by many restaurants and bars on weeknights). These discounts will be attractive to a majority of Canadian households currently as they still try to balance higher mortgage payments and cost of living increases.

Explore in-commute promotions

In-vehicle advertising is an emerging area. If you have used navigation apps such as Waze, you may have seen fast food or gasoline ads pop up when in active use. As drivers spend more time commuting, there might be opportunities to promote

BUILT

maintenance specials, winter tire packages and comfort/ convenience accessories right on to the car dashboard or attached smartphone.

The market is still nascent, especially in Canada and maybe out of reach for smaller shops in the short-term in both access and cost. But regional and national service chains and part stores may want to explore this opportunity to get a head start.

Invest in customer loyalty programs

Service-facing organizations almost always have a loyalty program, but smaller businesses have a harder time rewarding repeat customers. In times of economic hardship when customers are looking for the best bargain, it is especially important for shops to at least have the opportunity to offer them the best possible deal.

Without a way to connect with customers on a regular basis, such chances may get lost. There are plenty of affordable solutions such as Montreal-based Kangaroo and London, Ontario-based DataCandy, to name a few, that can manage customer loyalty for local shops through digital interfaces. When deployed in tandem with e-commerce solutions such as Shopify, they can become powerful tools to track customers and ensure they come back to your shop or store.

THE ROAD.

Kumar Saha

2024

The customer isn’t just a means to an end for a business. They’re the beating heart of the company, the very reason an automotive parts distributor opens the doors every morning.

And taking that task seriously is what separates the good stores from the great ones. They don’t approach customer service with a transactional mindset — it’s a relationship that is formed over time, one in which trust is developed and secured, all while ensuring the customer is given what they need for their automotive service and repair shop to be successful.

That’s what’s happening at the St. Catharines, Ont., branch at Motorcade Industries and it’s why they’re the 2024 Jobber of the Year.

A customer-centric approach is evident in every facet of the branch’s operations, from the store’s physical expansion to the way manager Shannon Black and her team manage expectations and

build long-lasting relationships.

She has cultivated a family-like atmosphere where employees and customers alike feel valued and respected. It’s a philosophy that has not only helped the Motorcade branch thrive, but has also set a standard for what automotive parts distribution can and should be.

Running a successful automotive parts business is about more than just selling parts, Black explained. It’s about putting the customer first and fostering a family-like atmosphere where employees and customers alike feel valued and respected.

“The big picture is the same: Your customer is the most important part of your day,” she said. “Getting them the parts they need affects their business. And they’re more than just your customer.”

This customer-centric approach is evident in the way the store has grown over the years, expanding their 15,000-square-foot store to better accommodate the ever-changing needs of their clients.

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‘YOUR CUSTOMER IS THE MOST IMPORTANT PART OF YOUR DAY’

They serve the entire Niagara region, a large geographical footprint with Lake Ontario to the north and Lake Erie to the south, with 30 inside staff, seven company drivers and 27 broker drivers. Being able to serve a diverse group of clients with a large variety of needs meant the store had be able to accommodate all sort of requests.

While she admitted that she places a heavy focus on keeping items in stock, no one can keep every product needed in the warehouse. That’s why the store has makes two trips to Toronto and back every day to get the parts their customers need.

And to stay focused on their key customers, they don’t accept any retail requests — everything is wholesale.

“Our customer base is on-hoist orders for automotive shops and we don’t really deal with retail at all,” Black explained. “We have a few people we may have dealt with a long, long time ago that might have been at a shop at one time and maybe they have their own business.

With a focus on their professional customers and aspirations for only getting better, The St. Catharines branch of Motorcade Industries is the 2024 Jobber of the Year // By Adam Malik

Manager Shannon Black, centre, is flanked by sales reps Dan Kovacs, left, and Mario Torelli, right

But besides that, it’s just professional and wholesale.”

Expectations

The branch typically gets a part off the shelf and out the door in six minutes. That’s how they see themselves as standing out from the crowd.

However, customer expectations need to be managed. Not every part will arrive immediately and not every part is in the warehouse. Black emphasized the importance of under-promising and over-delivering.

“I teach these guys to under-promise, over-deliver, but I also teach these guys that they have rapport,” Black explained. “I’ve probably been talking to a lot of these customers for 30 years, so and I have people on the desk that have the same amount of experience.”

But even for a newer member of the staff who hasn’t been around that long, Black imparts on them the need to develop a relationship with the customer.

“You talk to these people every single day — they become more than just a customer,” she said. “And we have the best customer base. We’re not dealing with retail. Our customers are wonderful. They really are. If they’re upset, there’s a reason for it. You deal with it. And we really don’t have a lot of issues with our customers.”

This long-standing relationship with customers is a point of pride for Black, who sees them as more than just clients.

“My main business philosophy is that that person on the other side of the phone is your best friend,” she said. “They are the person that pays your paycheck. They take care of us. We need to take care of them.”

Developing that rapport is crucial for staff. Not every phone call that comes in needs to be strictly business — and it often never always is.

“Right off the bat, the people on the other end of the phone like to joke around, or they talk sports or they even [sass] each other a little bit — but they have fun. Really, in a day, we have a lot of fun,” Black explained.

And that’s important because when you feel that the customer is your friend, you want to do more for them.

"You talk to these people every single day — they become more than just a customer."

FOR BEING NAMED JOBBER OF THE YEAR!

“They are not to tell the customer that they can’t get [a part] until they’ve asked two other co-workers. And it’s a normal thing. You’ll hear them down there, ‘Hey, I can’t find this. I’ve tried this, this and this. What do you think?’”

One of the key members of the team was Nick Nedeff. He was with the Motorcade branch for 50 years, coming in to work every day, even until he few months before died in 2017 at the age of 93. He only took one vacation and that was to attend the wedding of a close relative

“Nick poured his heart and soul into this store,” Black said. “He was a lot of fun to joke around with and an amazing mentor.”

It speaks to the close-knit nature of the team at the branch. “People like to get up in the morning and look forward to coming to work,” Black explained.

Staffing

No doubt that staffing remains the top challenge for Motorcade St. Catharines. But when you have such a great relationship with your customers, they become your advocates. Black explained that her shop clients will often recommend people come work for her.

But even so, the challenge is to make sure they fit in within the culture that the branch has set — it’s a team that will go out for dinners together or have a group outing. So she developed strategies to ensure she brings on individuals who will thrive in the branch’s close-knit environment.

For example, she’ll bring in a potential new hire for a day with pay and see how they fit in. And she can tell pretty quickly when someone just isn’t the right fit for the place. But when they are, it clearly shows.

“One thing that sticks out with the young people I have now is they

get excited,” Black said. She’s seen her younger staff get pumped about the journey to look for a part they have trouble finding at the start.

“Then they actually come up with a part. At the end, they get excited. That right there shows how much they care. And that’s huge.”

She has other staff members who had no knowledge of working the counter and wanted to learn. They came to her and said, “‘If I don’t have enough experience, then how do I get experience?’” Black recalled. “And they’re just very driven. And you can see that, as opposed to somebody that’s not.”

But they’re also not thrown into the fire. A person new to the role will always sit with a more experienced staff member until Black feels they’re good enough to be on their own.

And all staff will back each other up. If one parts picker is sick or they’re busy, someone will be there to help things moving.

Background

Black is a long-time veteran of the auto care sector. She began her career as an automotive technician. But after having her first child, she moved into the management side of things at a local car dealership where she held roles such as parts manager and service manager. After moving on to another dealership which later closed, the opportunity came up to run this Motorcade branch. She went up against 18 other candidates — all men.

Facing a male-dominated field, one might expect Black to have encountered significant obstacles, but she maintains that her gender was never an issue. “It was a long process. But no, it was very professional, and it was probably the best interview that I’ve ever been to,” she says.

Black’s unwavering confidence and competence have been the driving forces behind her success, not only in landing and thriving in the role at Motorcade, but in navigating the maledominated automotive industry as a whole.

“I’ve never had any issues, not at all. The people I’ve worked with who have seen how hard I worked, that has never been an issue,” she said. “It’s more of an issue from outside looking in, [like] the people that you’re working on their vehicle. Never with the people that I’ve actually worked with.”

Now, with 16 years under her belt at Motorcade, Black has become a respected leader in the industry, her passion and dedication serving as an inspiration to those around her.

Supporting their customers’ efforts

While Motorcade’s St. Catharine’s branch may focus on providing top-notch service and parts to its wholesale customers, the store also takes pride in its involvement within the local community and the broader automotive industry.

Rather than lead their own initiative, they look to support the causes that are close to their customers’ hearts. For example, Black noted, one customer is involved with a women’s support centre in Niagara Falls and they sold raffle tickets on their behalf to help out.

But they also support their customers efforts to improve their own operations. Black explained that the Niagara area is different than others — there are many smaller, privately-owned shops in the area. They have a strong and loyal customer base.

The COVID-19 pandemic shifted how some of these shops

operate. “I think everybody realized what was important. I really do. I realized there was a lot of getting back to basics, getting back to family time.”

That meant closing the shop on weekends or taking long weekends when desired. The shop’s customer base was strong that they could do those things — but only if Motorcade’s St. Catharines branch was able to help these shops get those customers serviced while the doors were open.

“It’s become very different because people have started to take extra long weekends and close their doors on Saturdays,” Black said. “And we support them in any way possible that we could.”

Advice

As with every Jobber of the Year Award winner, Black was asked what advice she would give to her peers.

“Respect is huge, and it goes both ways. If you give respect, you get respect,” she said.

And that goes for both staff and customers. There needs to be respect provide by both ends. It shows that you care.

“If they’re in a bind and they need something, we will do absolutely everything we can to get them what they need,” Black said.

It doesn’t matter if the customer made the mistake — if they did, then you should do everything you can to help them get out of the bind — and if you made the mistake, accept responsibility and move on.

“That goes a long way. Honesty and respect for everyone,” Black said.

CONGRATULATIONS

DRiV congratulates Motorcade St. Catharines on their Jobber of the Year 2024 win.

SKF Timing Chain Kit

Designed and approved to OEM quality standards. Enginereed by SKF

For technical support and insights visit: vehicleaftermarket.skf.com or scan the QR code to know more about the SKF products.

JOBBERS FEEL THE PRESSURE OF INDUSTRY DEMANDS

Reflections on industry trends and succession planning in the automotive aftermarket

Having grown up in a multi-generational jobber business, I often reflect on both the past and future of the industry. Some of my fondest memories involve attending industry events with my grandfather and father or spending time on the golf course with other jobbers, where camaraderie thrived.

Back then, the aftermarket landscape was shaped by a strong entrepreneurial ecosystem. Market by market, jobbers were wellknown fixtures, with deep relationships in their communities. They built trust with their customers, creating family-like bonds. While there was competition, everyone had their slice of the pie — each jobber knew where they stood in the competitive landscape, fostering mutual respect across businesses.

In the Hamilton, Ontario, marketplace for example, the industry began shifting in the 1990s and early 2000s. A once-balanced market with local family-run jobbers and small corporate-owned stores evolved rapidly. Small competitors positioned at the lower end of the market started absorbing business from used car lots and garages, which focused on budget-conscious customers.

Despite these shifts, the industry was still in a growth phase. With demand steadily rising, the number of competitors in Hamilton grew from a handful to close to 30 aftermarket competitive locations, as well as facing aftermarket pressures from the OE dealers — not to mention lubricant, and equipment specialist businesses that went direct channel.

But the first signs of major disruption in wholesale distribution came when large, publicly traded parts distributors began to implement strategies that fundamentally changed the landscape. By opening company-owned stores stocked with tens of thousands

of square feet of inventory, these businesses essentially established mini-distribution centers. This allowed them to bring inventory closer to customers, transforming central distribution hubs into high-margin profit centers and lowering the price to the ASPs cutting out a level of distribution.

Meanwhile, parts proliferation significantly increased the amount of inventory required, putting pressure on jobbers to invest heavily in stock. At the same time, the rise of e-commerce further accelerated change.

A notable example was Worldpac, which took the Hamilton market by storm with its expansive inventory, efficient logistics and innovative B2B e-commerce platform, Speed-Dial. Over the course of just three years, it became nearly impossible for us to compete in the import parts segment. I would estimate that one in every three import part sales during that period went to Worldpac.

Unfortunately, many jobbers — ours included — were not equipped to adapt to this level of change, lacking the necessary technology, talent and succession planning to respond effectively.

We often looked to the Greater Toronto Area (GTA) to anticipate trends. The evolution of Motorcade provided a glimpse of the future. Its sale to Entrepôt Autoparts set the stage for the next phase: A wave of mergers and acquisitions across the industry.

As the need for larger inventories grew, jobbers increasingly relied on credit facilities to finance stock expansion. At the same time, on the service side of the business, garages and repair shops took a different path by investing in real estate and diversifying their business models. The asset-light nature of service operations — combined with healthy margins — made them attractive to

In fact, in both Canada and the U.S., automotive service providers have become popular targets for private equity, with many mid-market firms adding them to their portfolios.

However, the same has not been true for jobber businesses. Financial buyers have historically avoided this segment due to its low margins, high asset requirements and limited free cash flow. These characteristics make jobber businesses less appealing to outside investors, which has forced many operators to approach growth cautiously.

Opening new locations in unfamiliar markets (“greenfielding”) requires a strategic, long-term investment to build trust and relationships from scratch. While same-store sales are often a safer growth strategy, expanding into lower-tier segments of the market carries risks, particularly around accounts receivable.

As a result, many jobbers opted to maintain the status quo, using their businesses more as retirement funds than as engines for future growth.

When I chose to join my family’s jobber business after university, I was well aware of the challenges. Although some jobbers have successfully passed their businesses to the next generation, many of these businesses are not positioned as growth engines. Without reinvention and reinvestment, they risk becoming obsolete as the industry evolves.

My experience managing and modernizing our family business gave me a rare opportunity to buck this trend. Over the course of a decade, I focused on strategic modernization — investing in technology, processes, and talent to keep the business relevant and competitive.

However, as I witnessed firsthand, large corporations with access to scale, capital and centralized resources have a significant edge.

Their ability to streamline operations and leverage economies of scale allows them to maintain profitability, while smaller businesses struggle to replicate these advantages.

The recent wave of M&A activity in the industry underscores the realities many jobbers now face. Long-standing family businesses are being acquired for modest valuations, as large distributors continue to consolidate the market. This trend makes me reflect on my own experience within our family business and the decisions I had to make to maximize its value.

Even with solid succession planning, the growing demands of the industry put significant pressure on independent jobbers to either scale up or consider exit strategies.

As I look to the future, I see that the path forward for jobbers will require reinvention. Businesses must modernize, invest in new capabilities and adopt more sophisticated planning processes if they hope to remain competitive.

The industry is changing rapidly. Those who are not prepared to evolve will find it increasingly difficult to keep up. For jobbers with the foresight to embrace change, however, there is still opportunity — whether through strategic partnerships, investments in technology or developing new business models.

Succession planning, in particular, will play a critical role in ensuring that these businesses can transition successfully to the next generation and continue thriving in an increasingly complex market.

Zakari Krieger is the Fix Network, Canadian vice president of Prime CarCare, responsible for the Canadian retail business, encompassing the Speedy Auto Service and Novus Auto Glass business lines

On the Road

Automechanika Frankfurt

September 10-14, 2024 Frankfurt, Germany

Automechanika Frankfurt welcomed 4,200 companies from 80 countries for its bi-annual event in Germany. Attendees took in the very latest product and innovation solutions for retail outlets and shops. With 26 halls and 172 countries represented, visitors were able not only to view the latest technologies but also try some of them out themselves in the outdoor exhibition area. Top trends discussed this year were electrification, vehicle connectivity, driver assistance systems and digitalization.

THE ROAD AHEAD FOR RIGHT TO REPAIR

While progress on the periphery is being made, standalone legislation is needed — and you can help make that happen // By

Throughout 2024, the right to repair has gained significant traction in Canada. With Bill C-244 and Bill C-294 in the final stages and under review by the Senate, the right to repair movement shows no signs of slowing down.

While not directly tailored to the auto care industry, these bills represent a significant step toward a broader national framework for the right to repair movement.

Bills C-244 and C-294 propose critical amendments to the Copyright Act, allowing individuals to bypass digital locks for specific purposes. Bill C-244 focuses on allowing consumers to bypass digital locks to repair and maintain products, ensuring they do not infringe on copyright law while servicing their goods. This means that individuals can legally bypass these restrictions — a significant win for repair advocates.

Bill C-294, on the other hand, addresses the need for interoperability between different programs or technologies, ensuring that one system or device can work seamlessly with another without infringing on copyright laws.

Although these bills make headway in addressing repair rights, they do not include a specific carve-out for vehicles. No penalties are outlined for non-compliance by original equipment manufacturers (OEMs) in the automotive industry, which leaves a significant gap for our sector. Furthermore, the bills stop short of addressing the root issue for automotive right to repair — consumer data ownership.

While we are encouraged by the progress of Bills C-244 and C-294, the goal remains to achieve standalone legislation for the automotive right to repair. Similar to the legislation passed in

Australia, such a law would demonstrate a commitment to our industry and consumers' unique needs.

Standalone legislation would establish that consumers own their vehicle data, allowing them complete control and free will as to where they take their vehicle for maintenance and repair.

When it comes to achieving standalone right to repair legislation, consumer support is key. A recent study found that 94 per cent of Canadians agree that they should be able to get their vehicles serviced at any repair shop, and 83 per cent believe automakers should be legally required to share repair data with independent shops.

For consumers, the right to repair is about protecting their choice. It ensures they can shop around for the best price and service, maintaining healthy competition in the market. For the automotive industry, it is about safeguarding the livelihoods of over 500,000 workers who depend on access to repair data to service vehicles across Canada.

While Bills C-244 and C-294 represent meaningful progress, our work is far from over. We will continue advocating for standalone automotive legislation that guarantees consumer rights, fosters competition, and holds manufacturers accountable. To advocate for the right to repair, visit our website, righttorepair.ca, to get started.

F-150 CATBACK EXHAUST

Thermal R&D Exhaust

Performance has unveiled a catback exhaust system for 2021 and newer Ford F-150 trucks equipped with 5.0L V8 engines. The system features a deep, aggressive exhaust not. With multiple exhaust tip options the exhaust system is engineered to enhance the sound, appearance and performance of the F-150. It comes with a three-inch Mandrel Bent Tubing for maximum exhaust flow, boosting horsepower and torque, two finish options (polished or black ceramic coated) and dual tip or larger single tip options. www.thermalrd.com

PORSCHE DAMPERS

Revised KW V3 Classic Dampers for Porsche 911 (F Body) are now available for all engine variants and model years from KW Automotive.

Featuring adjustable compression and rebound, these dampers boast forged spindles, making them ideal restoration companions. Furthermore, original torsion bars can be retained, adjusting the lowering achieved by the usual air-cooled Porsche (F Body, G Body) method of turning the bars.

The KW V3 Classic dampers for the classic Porsche 911 can also be adjusted separately in the low-speed compression and low-speed rebound stages. This allows the preset basic setup to be further fine-tuned individually.

www.kwsuspensions.net

24_010910_Jobber_News_NOV_CN Mod: October 11, 2024 10:28 AM Print: 10/28/24 page 1 v2.5

AIR PURIFIER

SKF has partnered with CabinAir to launch the SKF Smart Air Purification System in the automotive aftermarket, enhancing incabin air quality for a healthier, safer driving experience. This system removes over ten times the pollutants compared to traditional methods, efficiently capturing ultrafine particles, viruses, and bacteria. It combines active particle charging with mechanical filtration, outperforming conventional passive systems. The system also integrates with the Nordzone™ app for real-time air quality monitoring, ensuring a healthier ride and reducing the risk of virus transmission among passengers. www.vehicleaftermarket.skf.com

E-COMMERCE FUNCTIONALITY

TVL Communications introduced a new functionality for carrying out e-commerce for tires and rims with the newest Stox’s Distribution tire ordering catalogue. Once identifiers are obtained from their representative, hundreds of shops using the software can connect to the new Stox transactional site and place their orders through the “Transfer to AB Magique” button. The shopping cart is transferred directly on their customer’s estimates. www.vlcom.com

CAR-TOONS

OIL FILTER HOUSING KITS

Standard Motor Products (SMP) expanded its Standard Oil Filter Housing Kits, offering applicationspecific solutions, not universal fits. Addressing common failures like oil leaks in Pentastar 3.6L units, these kits are designed for specific models, including the latest OFH111 for vehicles like the 2024-20 Jeep Grand Cherokee. Each kit comes fully assembled with all necessary parts for a complete installation, ensuring vehiclespecific fit and performance. The kits also match the original thermal characteristics to maintain proper oil cooling, providing a comprehensive, tailored solution for oil filter housing replacementsy. www.standardbrand.com

DEF CLEANER

Rislone introduced the DEF Crystal Clean, a cleaner designed for the selective catalytic reduction (SCR) systems in diesel vehicles, aimed at restoring power and performance by eliminating crystal contaminants. Specifically formulated to clean SCR systems safely and effectively, the product works on all vehicle sizes, dissolving crystal deposits throughout the entire system without voiding vehicle warranties. Compatible with all UREA DEF/AdBlue fluids, it supports vehicles with various emission control devices. Usage varies by vehicle size, with a dosing guide provided for effective application. www.rislone.com

BAYWATCH

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

939 Warden Ave Scarborough ON M1L 4C5 Info@hotspotAutoparts.com | www.hotspotautoparts.com

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