Jobber News October 2011 by Annex Business Media

Jobber News ASRW Gets It Right

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Uni-Select Expands In Florida

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MAGAZINE

Bestbuy Shareholders Upbeat Down East OCTOBER

2011

Serving the Automotive Aftermarket Since 1931

RAISING THE BAR

ON UNDERCAR Engine Tech: Duramax Injector Service Battery Tips for Consumers Crash Parts Survey: Bodyshops Speak Up Automotive Aftermarket Industry Week Previews AAPEX Educational Sessions SEMA Vehicle Technology Centre PLUS: Advice for Stalled Businesses

Visit AutoServiceWorld.com.

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This Month

Contents

October 2011

Vol. 79,

No. 10

RAISING THE BAR

ON UNDERCAR After years of battling a downward spiral in profitability, the brake and chassis categories have more recently seen an increase in the popularity of premium quality products. And with good reason.

18 COVER

Over the Counter

Las Vegas Automotive Aftermarket Industry Week Preview

ASRW Industry Forums Deliver Valuable Solutions; Uni-Select Expands In Florida Market; Good Times Roll for Winners of the Raybestos Brakes Contest; Maslack Marks Milestone Anniversary; Wakefield Opens DEF Facility; Bestbuy Shareholders Upbeat Down East. Jobber News 80th Anniversary From our pages..................................................4, 46

AAPEX: Exercise Your Mind at the AAPEX Learning Forum ...........26 New Vehicle Technology Centre to Debut at the SEMA Show...........30

32 NEW PRODUCTS 38 Engine Tech: Fuel Injector Service for GM 6.6L Duramax Diesel Engines

14 Money & Management: What to Do When Your Business Stalls

Too many business owners do nothing, or too little too late.

16 Market Tracker: Crash Parts Survey: Bodyshops Speak Up

In a survey by our sister publication, Bodyshop Magazine, collision repair facilities speak their mind on OE, recycled, and aftermarket parts usage.

How to keep fuel injectors from becoming contaminated during engine servicing.

Knowledge Building: Top Battery Tips For Consumers

Battery sales will ramp up as the nights get longer and the temperatures drop, and more than a few consumers will find their way to your door looking for the right advice.

45 Autoserviceworld.com Internet Directory 46 Comment THE CHANGE GAME

Departments Appointments................................................................ 8 JOBBER NEWS / OCTOBER 2011

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From Our Pages Vol. IV, No. 2, February 1935 Canadian Automotive Wholesalers Association Now a Fact The idea of a comprehensive all-Canadian association of wholesalers, which has been under consideration for some little time, has finally taken root, and a body known as the Canadian Automotive Wholesalers Association is the result. An organization meeting was held in Montréal during the motor show there, and an Eastern Canadian section embracing wholesalers in all the territory east of the Ottawa line was inaugurated. Officers were elected as follows: Chairman, M.W. Drayton, Canadian FairbanksMorse; Directors, Fred C. Manning, Maritime Accessories, L.P. Gravel, Gravel & Fils, and C.E. Prefontaine, United Auto Parts; SecretaryTreasurer, S. Boyd Millen, John Millen & Son; and representative to tariff committee, C.G. Keyes, Keyes Supply Co. Jobber News 80 Years of Serving the Aftermarket 1931-2011

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ASRW Industry Forums Deliver Valuable Solutions Automotive Service & Repair Week’s first event outside of Las Vegas has proven to be successful. The Orlando, Fla., event attracted strong East Coast crowds, consistent attendance at the autobody and mechanical educational sessions, and solid interaction at industry forums. Just over a year ago, when Automotive Service & Repair Week embarked on a separation from Automotive Aftermarket Industry Week and the SEMA Show in particular, it was unclear how the change would be perceived. However, a strong slate of exhibitors, show floor events, and industry forums provided a successful recipe. Comments from exhibitors and attendees were positive, with most reflecting the sentiment that the tight focus of the show, particularly the NACE portion focused on the autobody sector, provided an efficient experience for both. And many also welcomed the shift from Las Vegas, seeing it as an opportunity to bring the event to businesspeople who would not normally travel to Las Vegas. This year’s ASRW Industry Forum was a particularly outstanding success for both collision repair and mechanical industry professionals in attendance. The forums took place Wednesday, October 5th during the fourth annual Automotive Service & Repair Week (ASRW), and were immediately followed by a networking reception sponsored by Toyota Wholesale Parts at the Orange County Convention Center in Orlando. The forum and reception concluded the first day of education at ASRW 2011, featuring the International Autobody Congress & Exposition (NACE) and the Congress of Automotive Repair and Service (CARS) events. Designed as a vehicle to discuss relevant, thought-provoking topics, the forums were filled with shop owners, managers, and technicians. Moderator of the Collision Forums and Collision Hub Founder Kristen Felder said, “I was impressed to see the diversity of shop owners and employees coming together to discuss their business in a friendly and appreciative matter.” The first Multi-Shop Operator (MSO) Symposium also provided strong content to a sold-out crowd of 150. The day-long event, which took place at the Orange County Convention

Center, featured educational sessions specific to MSOs, a lunch presentation, and an evening networking reception. “The MSO Symposium was one of the most highly anticipated events at ASRW 2011, and it far surpassed all expectations we had for our first effort,” said ASA president Ron Pyle. “We received a tremendous response to this event, both from attendees and sponsors. We have a lot of people to thank for the success of the event, and we look forward to making the symposium bigger and better for 2012.” Pyle continued, “We really took the time to look forward and see what’s on the horizon of everyone’s needs in the industry. These are the topics that are affecting the industry right now and in the years to come.” The 2012 edition of Automotive Service & Repair Week, including the International Autobody Congress & Exposition (NACE) and the Congress on Automotive Repair & Service (CARS), is scheduled for New Orleans October 10-13 at the Ernest N. Morial Convention Center, New Orleans, La. JOBBER NEWS / OCTOBER 2011

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Ontario Charity Tourney Raises $5,000 According to organizer Scott McKenzie, the AIA Ontario Division charity golf tournament raised some $5,000 for the High Five for Kids charity and for the association scholarship fund. Held at the Grey Silo course in Kitchener, the tournament welcomed 90 golfers. The event was a casual affair. “We just told people to play their own ball or play a scramble, whatever they want, because the main thing was to raise money for the cause,” says McKenzie. Next year’s event is already in the planning stages. g

Spectra Premium Adds Price Shopping Tool Spectra Premium has newly added capabilities, teaming with Retail Insight of Oklahoma City, the makers of the WebFetch price shopping tool. The WebFetch tool is the most widely used and accepted method of gathering pricing in the automotive industry, and is used by all major automotive retailers. With the addition of this new capability, more time is spent analyzing pricing data than trying to collect it. The information is timely and cost-effective.

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Uni-Select Expands In Florida Market with Parts Depot Acquisition

Uni-Select has entered into an agreement with Parts Depot, Inc. to purchase certain assets in the state of Florida, giving them an even larger foothold in one of the most important aftermarket markets in the U.S. Uni-Select recently acquired 27 Finishmaster outlets in Florida. The latest acquisition is expected to add 39 points of sale and five distribution centres, and add annual sales of US$87 million. Following the transaction’s closing, Uni-Select will open new stores under its Auto Plus trademark in those locations where leases have been assumed. “This transaction is in line with our strategy of continuing to expand our footprint as we continue our growth in the U.S. market,” says Richard G. Roy, president and chief executive officer of Uni-Select Inc. “The state of Florida is one of the most important automotive markets in the U.S., and Uni-Select’s entry into this market is a significant step in our development plan.” “This development is exciting news for (Parts Depot Inc.’s) customers and employees. Uni-Select will offer employment to the vast majority of our employees, and will provide strong partnership to customers, allowing them to compete and grow in the automotive aftermarket industry,” says Rollie Olson, chairman and CEO of Parts Depot.

Good Times Roll for Winners of the Raybestos Brakes Contest

As a kickoff to the Raybestos Chicagoland race weekend, the winners of the Raybestos Speed Into Savings contest got a first-hand view of the customized 2011 promotional giveaway vehicle: a highly customized 1964 Pontiac GTO built for road racing, powered by a 700 horsepower GM LSX 454 V8 engine, and equipped with Raybestos NASCAR-spec brakes. The Canadian contest winners included installer winner Ronny Pulcinelli and guest Louise Royer, and consumer winner Marc Neveu and guest Mario Neveu. Prior to the Sunday Chicagoland Chase race, the group was invited to tour the track facilities and also enjoyed a shopping tour of Chicago, followed by a top-notch night out in the “Windy City.” Building on the success of the Speed into Savings promotion, Raybestos is planning a follow-up with the King Richard promotion, offering both consumers and installers a chance to win a trip to the Richard Petty Driving Experience Racing School in 2012.

Raybestos Speed into Savings consumer winner Marc Neveu and guest Mario Neveu, Louise Royer, and Installer winner Ronny Pulcinelli pose with the highly customized 1964 Pontiac GTO. Continued on page 8

For more on these and other stories, log on daily to autoserviceworld.com

Jobber News

Editor and Publisher Andrew Ross (416) 510-6763 E-Mail: aross@jobbernews.com Contributing Editor Emeritus Bob Blans Contributing Editor Martha Uniacke Breen Contributing Writers Mark Borkowski, Dennis Mellersh, John G. Smith Sales Manager Jay Armstrong (416) 510-6745 Circulation Manager Selina Rahaman (416) 442-5600 ext 3528. Customer Service Roshni Thava (416) 442-5600 ext 3555 Art Director Choo Hwee Kuan Production Manager Steven K Hofmann (416) 510-6757 Vice-President Alex Papanou President Bruce Creighton 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. Subscription rates*: Canada $49.95 + $3.50 GST + Applicable Taxes per year; $79.95 + $5.60 GST + Applicable Taxes for 2 years; Single Copy Price $6.00 + $0.42 + Applicable Taxes. U.S.A. & Foreign: $62.95 U.S. per year; Single Copy Price $8.00 U.S. * Yearly rates include Annual Marketing Guide (single copy price $72.95 plus $5.00 shipping plus GST $5.46)(U.S. orders payable in U.S. funds). Ontario residents add 8% PST. U.S. & Foreign $77.95 +$5.00 Shipping US Funds. Jobber News is published by BIG Magazines LP, a div. of Glacier BIG Holdings Company Ltd. a leading Canadian information company with interests in daily and community newspapers, and business-to-business information services. All rights reserved. Printed in Canada. The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior consent. Canada Post Canadian Publications Mail Sales Product Agreement No. 40069240 “Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., Jobber News, 12 Concorde Place, Suite 800 Toronto, ON M3C 4J2 Jobber News Magazine (ISSN#0021-7050) is published monthly by the Business Information Group, 12 Concorde Place, Suite 800, Toronto, ON M3C 4J2 US office of publication: 2424 Niagara Falls Blvd, Niagara Falls, NY 14304. Periodicals Postage Paid at Niagara Falls, NY. US postmaster: Send address changes to Jobber News Magazine PO Box 1118, Niagara Falls, NY 14304-1118. From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us via one of the following methods: Phone 1-800-268-7742, Fax 416-510-5140, e-mail: jhunter@businessinformationgroup.ca. Mail to: Privacy Officer, Business Information Group, 12 Concorde Place, Suite 800 Toronto, ON M3C 4J2 Business Information Group 12 Concorde Place, Suite 800 Toronto, ON M3C 4J2 We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities. Association of Business Publishers 205 East 42nd Street New York, NY 10017

ISSN 0021-7050 Online 1923-3477

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Proforce Moving to Larger Facility Proforce Automotive has announced it has moved to larger facilities. The supplier of brake and ride control products is moving to a new location with more than 65,000 sq.ft. of warehousing space, to provide better service, stronger inventories, and increased value. The new location will allow Proforce to carry larger inventories, with new numbers, reduced shipping errors, faster pickup service, and same-day shipping across Canada, says the company. The new address and contact info is: 3081 Orlando Dr. Mississauga, ON L4V 1L6 Phone: (905) 612-0520 Toll Free: 1-877-488-5058 Fax: (905) 612-9979 Order desk email: orders@ proforceautomotive.com Web: www.proforceautomotive.com g

Maslack Marks Milestone Anniversary

More than 60 suppliers and customers attended Maslack Supply Company’s customer appreciation golf event, held to mark the company’s 52nd anniversary. The event was held at the Idylwylde Golf and Country Club in Sudbury, Ont. The business, which is the Aftermarket Auto Parts Alliance member for Northern Ontario, was founded in 1959, and now has more than 200 employees and 13 locations. John Maslack and the company were honoured with the Jobber News Jobber of the Year Award in 1995.

Wakefield Opens Canada’s First Diesel Exhaust Fluid Solutionizing Facility Wakefield opened Canada’s first DEF solutionizing facility in Toronto, Ont. ahead of schedule, after demand ramped up more quickly than expected. At the ribbon cutting, from left to right: Carlos Cervantes, V.P. West Coast sales, CDI; Luis D. Cervantes Jr., president, Cervantes-Delgado Inc. (CDI); Bob McDonald, president, Wakefield Canada Inc.; Don Moerdyke, V.P. manufacturing, CDI; Dave Fifield, COO, Wakefield Canada Inc.; Ross Ayrhart, national sales manager, DEF at Wakefield Canada Inc.; Chris Hughes, director of manufacturing pperations, Wakefield Canada Inc.

Trico Launches New Website Trico Products has launched a new, upgraded website designed to quickly guide consumers, aftermarket auto professionals, and original equipment manufacturers to the information they need. The new www.tricoproducts.com site features new navigation that directs visitors to the products and information most relevant to them. This navigation features front-page tabs for drivers, trade, and OEM visitors that allow each of these audiences to access the content about Trico products specific to their needs.

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Maslack Supply Company celebrated its 52nd anniversary in September. Assembled here are key members of the Maslack organization: (l-r) John Maslack, Randy Roy, Judy Roy, Betty Jane Marks, and Stephen Marks. Photo Courtesy Candid Studios.

Wakefield Canada has opened its H2Blu diesel exhaust fluid (DEF) solutionizing facility in Toronto ahead of schedule. The ribbon-cutting ceremony took place well ahead of the original business timetable. Wakefield Canada has been marketing its own brand of DEF, H2Blu, for less than half a year and its market success has already accelerated the company’s plans for Canadian production. Bob MacDonald, president of Wakefield Canada, cut the ribbon officially opening the high-tech facility that will take prilled urea, the raw ingredient in DEF, and process it into readyto-use H2Blu DEF. The solutionizing facility is housed within Wakefield’s existing lubricant blending plant in Toronto’s Long Branch area. The facility is understood to be the first of its kind in this country. Wakefield sources prill through CDI (Cervantes-Delgado Inc.), a strategic partner of Potash Corp.

APPOINTMENTS

Beck/Arnley has appointed Heath Breedlove to the position of vice-president of sales. In this position, Breedlove will lead sales growth across all channels of distribution in the United States, Canada, and export markets in support of Beck/Arnley’s retail and traditional WD customers, and its independent jobber, service dealer, and DIY customers. In addition to the company’s traditional aftermarket customer base, Breedlove will be responsible for sales to Beck/Arnley’s OE customers, as well as sales to other manufacturers. Breedlove will report to Max Dull, vice-president and general manager of Beck/Arnley. JOBBER NEWS / OCTOBER 2011

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You don’t repair just one vehicle make. We don’t make parts for just one either.

IT’S TIME TO RETHINK WHAT DELPHI CAN DELIVER

Here’s just a glimpse. Ford. Fuel pumps. Nissan. Oxygen sensors. Toyota. Ignition coils. Mini-Cooper. Compressors. Audi. Condensers. General Motors. Radiators. Hyundai. MAF Sensors. Volkswagen. Common rail systems. Honda. Fuel pressure regulators. Where we came from is only a part of where we’re going. Delphi OE DNA. It’s inside every one of our parts.

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To learn more, visit us at AAPEX 2011, Booth #5029

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Bestbuy Shareholders Upbeat Down East

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Bestbuy officially introduced its new board of directors, who gathered for this group pic at the Peake’s Quay dinner.

Gabriel Creates Light Vehicle Part Search for Smart Phones Ride Control LLC has introduced a Gabriel Mobile Part Search available on most smart phones. The mobile part search is available through its website at www.gabriel.com. The easy-to-navigate Gabriel Part Search is available by going to Gabriel. com from a smart phone. The website, sensing that it is being accessed from a smart phone, automatically pulls up the Gabriel Light Vehicle Part Search, which has been optimized for viewability and usage ease for all iPhone, newer Blackberry and Droid platforms. For additional questions, the tool quickly links customers to a Gabriel Answerman line with a click for one-on-one answers and solutions.

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More than 200 Bestbuy Distributors Limited shareholders and suppliers made their way to Charlottetown, P.E.I., to engage in some of the most productive and positive meetings of the year. Naturally, the Bestbuy Buy and Sell also involved some well-deserved social events and networking opportunities, but with two full days of one-on-one meetings between shareholders and suppliers, it was mostly, if not all, business. Some 45 suppliers secured meeting rooms for the Buy and Sell, with most reps coming out of the round of meetings weary but smiling, having

More than 200 shareholders and suppliers gathered at the Peake’s Quay Restaurant for a lobster dinner, complete with local entertainment.

Shareholders Barrie Lydiatt, Dash Distributors, Edmonton, Alta., and Doug Squires and Bill Elton of Colonial Distributors, St. John’s, Nfld., compare notes during a lunch break.

Shareholders Doug and Vanessa Thorne of Auto Magic, Prince George, B.C., were joined by Bestbuy president Jeff VandeSande during the welcome reception on the Delta Hotel’s Harbour Front Patio.

had the opportunity to bring some of Canada’s largest jobber organizations up to speed on what their respective companies have to offer in terms of product, programs, and services. The official festivities kicked off with a reception at the Delta Hotel’s Harbour Front Patio, which overlooks Charlottetown’s storybook harbour. Guests were treated to a selection of seafood hors d’oeuvres, with suitable refreshments to wash them down.

In what has become a tradition at the buying group’s events, a golf tournament to raise money and awareness for the Toronto Hospital for Sick Kids kicked off the week’s events. This year’s venue, Dundarave Golf Course, earned stellar reviews from all attendees, who were equally pleased with the record-breaking warm weather that had been thoughtfully arranged for them by event organizers. Naturally, when in Charlottetown you’re never too far away from a lobster dinner, and the gala event at the notable Peake’s Quay Restaurant filled the bill handily, with all in attendance getting their fill and then some (although steaks were also on order for those who preferred the turf to the surf option.) JOBBER NEWS / OCTOBER 2011

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P R E S S

R E L E A S E

Autologue Computer Systems, Inc. Acquires Multi-million Dollar Software Provider, Chicago-Based SBC Solutions, Inc. SEPTEMBER 1, 2011, AUTOLOGUE COMPUTER SYSTEMS, INC., headquartered in Buena Park, California, acquired SBC Solutions, Inc. in Chicago. Jim Franco, CEO and President of Autologue, says, “I’ve been in the business for over 26 years and recognize that when opportunities avail themselves it makes a lot of sense to do acquisitions of this magnitude. There are 2 compelling reasons for acquiring SBC. First and foremost, is the longevity of the staff and their endless experience in the Automotive Aftermarket. For instance, Jim Green, one of the programmers, just celebrated 30 years at SBC just 2 weeks ago, and he’s still in his early 50’s. This is just one example of the entire staff at SBC, who have spent many, many years servicing, programming and deploying technology to businesses in the Automotive Aftermarket. The second reason is their technology. SBC has been developing systems for the last 34 years, and within the last 5 or 6 years has developed a complete Windows .NET package. This technology is what is needed for this industry. Autologue with over 2000 customers needs a path to take them to the next level, and to run their companies on the latest, state-of-the-art Windows technology. Autologue has full intentions of enhancing the SBC product for their existing customer base by integrating all of our existing phenomenal “eProducts”. ePartConnection is by far the most powerful Internet Parts Ordering software tool to come to the automotive aftermarket! This product allows the Dealer/Jobber and WD to maintain a 24/7 Internet presence. You can provide Activant's PartsExpert Catalog to your installers, commercial accounts, and the "Do-it-Yourselfers". ePart has features such as eTools & Equipment, Fleet Survey, and eToolbox Repair/Diagnostic Information. Also, email notifications, promotional indicators, monthly specials and non-cataloged parts and accessories such as store front end merchandise. Additionally you can display company newsletters, links to manufacturer’s websites and facilitate pass-through ordering to W/D’s and manufacturers. ePaperless Office provides your office staff as well as your customers, the ability to view, print, and email statements, invoices and parts purchased, anytime via the Internet. More importantly, you can save labor costs by eliminating the expense of filing documents, stuffing statements, retrieving and faxing invoices. By utilizing laser printers you can eliminate multi-part invoices, multi-part statements, envelopes, and stamps. Autologue would like to offer you a free trial, so you can see first hand how valuable ePaperless office can be for your company. eDelivery Tracking allows your dispatcher, counterman, and the customer to view when the invoice was printed, when the driver was dispatched, and what parts are on the way. If equipped with GPS tracking on a handheld device, i.e.,an off-the-shelf stylus equipped cell phone, eDelivery will plot on Google™ Maps, the delivery routes, (real time). It also captures the signature on the handheld device and sends the signed invoice directly to ePaperless Office. No scanning! Autologue offers a free trial to “Test Drive” eDelivery so you can realize as much as a 20% increase in efficiencies on your deliveries. eDataCommerce – ATTN: Accounts Payable Department – EDI: Send purchase orders (POs) to the Manufacturer/Supplier, then match the PO and ASN (Advance Shipping Notice) for quantity variances. The invoice is then matched to the PO for pricing variances – done all electronically online. Increases productivity and accuracy by reconciling Accounts Payable on-line and NO FILING, NO PAPER, NO DELAY! eDataAnalysis – AutoCube™ Business Intelligence Software: Data mining software, customize by customer, sales, counterman, product line & more. Simple to manipulate data the way you want it. Manage multiple locations with ease. Increase productivity for management, schedule personnel efficiently with time-of-day sales and counter information. Have reports to see what customers are buying, but also see who are NOT buying key product line items. Valuable feedback that allows you to take action and resolve problems BEFORE they cost you sales! Measure merchandise return percentages by customer and product line. Monitor the value of marketing campaigns to keep track of outside sales quotas. Most importantly, you make the right decisions based on fact-based analysis. We also plan to enhance the existing Autologue customer base by introducing the new SBC Windows technology to them. We see this as a huge opportunity to once again bring technology to the parts distributor to increase their productivity, decrease costs and increase profits. Autologue’s philosophy is a “Customer First” attitude with “Service Beyond Service”, and have instituted at SBC the Autologue model. When the customer calls our 800 Customer Support number, they speak directly to a Customer Service Representative to get answers immediately – no voicemail, no receptionist. During this economic downturn, there is no better opportunity than to experience the Autologue philosophy of “very little or no up-front money for most of our products, and no long term contracts.” We make it easy for our customers to do business with all divisions of Autologue. Try our products for 30-60 days at no charge or no obligation.

SBC will be showcased at AAPEX in November at Autologue’s Booth 3071, and at the AWDA one-on-one meetings.

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MONEY & MANAGEMENT

What to Do When Your

Business Stalls

Mark Borkowski is president of Mercantile Mergers & Acquisitions Corporation. Mercantile specializes in the sale of mid market companies sold to large international strategic or private equity buyers. Tony Johnson is president of Compass North, a firm that helps companies in transition succeed by providing turnaround management, interim executive, and corporate consulting services. www.CompassNorthInc.com

t maybe a safe bet to say business bankruptcies will be going up in the near future, given all the dark economic clouds gathering these days – ranging from the U.S. economy slowing down, to the global government debt crisis, to the over-par Canadian dollar. According to Bankruptcy Canada, business bankruptcies have been falling for the last 10 years; they are 65% lower today than a decade ago. This is truly surprising in the wake of the Great Recession of 2007–2009 and its aftermath; but it is likely the result of low interest rates, businesses cutting back, and a drawdown on reserves rather than anything inherently positive. However, a key question is why do business bankruptcies happen at all, especially with established companies? According to the 1997 Statistics Canada study, Failing Concerns: Business Bankruptcy in Canada, “Almost half of the firms in Canada that go bankrupt do so primarily because of their own deficiencies, rather than externally generated problems.” As to the other half, it may be fair to say that at least half of them could have survived as well, if they had reacted more appropriately to what was going on in their marketplace. So why are most of these businesses dying unnecessary deaths? Seeing Business Danger Clearly Tony Johnson, president of Compass North, believes the answer is twofold: 1. Business owner/operators in companies of all sizes are used to functioning when things go right, so that when things start to go wrong, they fail to recognize and react early enough; and

2. Because of ego reasons and/or misplaced concerns over expenses, struggling company owner/operators typically treat business turnarounds as a “Do-It-Yourself” project, despite the fact that they have little to no training, experience, expertise, or practice in dealing with such circumstances, even though time 14

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is of the essence and their “business baby” is falling into ever more steep decline. Johnston’s solution to this double problem is similarly twofold: 1. Provide an easily visualized model of how businesses fail, so company owner/operators can better picture the dangers and difficulties their business faces should they ever start to stall, spin out of control, and crash; and 2. educate these same people why the DIY approach just invites “death,” and how the smart play is to call in a business turnaround professional. What Happens When Businesses Start to Fail Johnston believes that thinking about airplanes is a great way to picture what happens to businesses when they turn from being healthy (flying well), to being challenged (stalling), to declining (spinning out of control), to going bankrupt (crashing). He says this imagery also helps to point out what happens to those who are in control, why even the best of them easily get overwhelmed, why doing what needs to done for recovery often comes too late, and who best should be in charge of taking corrective action. Johnston points to the June 1, 2009 Air France Flight 447 crash (you can read a summary of the accident at http://en.wikipedia.org/ wiki/Air_France_Flight_447) to explain how the five stages of business failure mirror the five stages of an airplane crash – and how even professional pilots, supposedly well trained, didn’t have the right skills and experience for the rare, unexpected, but deadly dangerous situation they faced. Further, Johnston points to the 1997 Statistics Canada report mentioned above to explain how most such failures are caused by management. He believes that most businesses miss seeing and avoiding going beyond their “point of no return.” Without those in control taking the right, situationally correct actions at the right time, struggling business will still crash and burn. For this reason, the psychology driving JOBBER NEWS / OCTOBER 2011

05/10/11 9:35 AM

those in control is the most critical of issues. Unfortunately, the vast majority of owner/ operators of struggling businesses mismanage threatening situations and all too often react far too slowly, because (i) they are too used to “flying” when the weather is calm and clear; (ii) they have no effective and practiced training in how to keep their “aircraft” under control and pointed in the right direction when “bad weather” hits or difficulty or crisis develops; (iii) they don’t properly or effectively react when their business goes into distress; and (iv) most importantly, they don’t get help from the right type of professionals early enough on, when the situation is still controllable and when there is still “air-room” to effect corrective action. Where to Get the Right Help Surveys tell us that the outsiders to whom business owners and operators most often turn when stressed are first their external accountant, then their lawyer. That’s like talking to your dentist when you have a medical problem or calling the car dealer

when your home’s air conditioning breaks down. For this type of intense, “life-of-thebusiness-in-the-balance” situation, the right type of professional to call in is a business operations professional trained and experienced in turnaround and crisis management (i.e., a turnaround executive or consultant).

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Financial situation stretched or in distress Business results inconsistent, declining, or poor Sales or asset growth rate straining available resources Inventory or accounts receivable growing faster than revenue Efforts not producing desired or expected results Market share loss Persistent operational problems Mounting problems with bankers or suppliers Non-payment of remittances to government Customer complaints and defaults on contracts/commitments People problems in: a. ownership; b. management team; c. work force; or d. customer base. Business troubles suffered by a prime customer or key supplier

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1751_Moneris_Jobber_Oct11_v1.indd 1

JOBBER NEWS / OCTOBER 2011

OCTOBER Finance p14,15.indd 15

9/22/11 2:35 PM

05/10/11 9:36 AM

MARKET TRACKER

Shops Want More Balanced

Approach to Sourcing By Andrew Ross

n a recent survey by our sister publication Bodyshop Magazine, it is clear that shops continue to struggle with the forces affecting their choice of parts. And, while nearly three-quarters of respondents indicated that they were happy with the current mix of OEM, recycled, and aftermarket parts available to them, there are some contentious points. Many are unhappy with the way they feel forced into using parts they would not themselves choose; 43.1% listed their insurance partners’ directives as the number-one driving force in which parts get used. But it doesn’t end there. The survey received 346 responses, including 278 from collision repair facility managers, plus 68 from managers of dealer bodyshops. Overall, the largest number of respondents put their OEM/ recycled/aftermarket parts mix at 60%/10%/30%, though there were a number of responses outside this range. In many comments added by the respondents, it wasn’t just that insurance companies were forcing their hand; it was also the lack of available options. Mostly, the most stinging comments were reserved for aftermarket parts. “Takes too long to get parts and they don’t always fit or work,” was one key comment, echoed in a similar tone by many others, such as “Substandard parts are for insurance pocketbooks, not in the best interest of consumers unless price matters,” to keep the job from being written off. Comments ranged from the resigned – “I would like to have more input as far as the parts we put on vehicles” – to those that challenged insurance company reps to find out for themselves: “I would like the insurance company to come in and work with the aftermarket or recycled parts.” 16

OCT TRACKER P16,17.indd 16

There also seems to be only limited confidence that certifications such as CAPA ensure quality. After decades of existence, it would seem that all aftermarket parts are being lumped into the same category. Clearly there is some work to be done here to separate the quality aftermarket parts from the rest in the minds of bodyshop personnel. It’s not all just a superficial desire not to have to fiddle with parts fitting, either. It goes deeper. “Poor-quality aftermarket parts affect my KPIs with insurance companies,” said one respondent, reflecting a sentiment echoed by many shops. “Insurance, regardless of age of vehicle, should be multilevel and the option of coverage for OEM parts should JOBBER NEWS / OCTOBER 2011

19/10/11 12:09 PM

be [available] as long as the owner wants to purchase additional coverage. Way less issues,” was another common refrain. However, it is important to note that not everyone is unhappy with the situation. It seems that the situation can be highly variable, depending on your location and your local supply chain. “All parties concerned, as far as the ones we deal with here, have stepped up to the plate to offer good-quality parts at a reasonable price and availability,” was a clearly positive response. A number of respondents indicated that the competitive pricing strategies of dealerships and their OEM suppliers have gone a long way to ensure that repairs can be performed using original equipment parts. And a balanced approach works best for the rest. “Although typically we would profit more and it would make more sense with vehicle age to use more aftermarket and used parts,” indicated one respondent, “the dealers have a good discount system and it’s nice to receive parts that are guaranteed-fit, clean, and ready to use when possible. For the other percentage of parts, it’s good to have a nice used/aft mix, as aftermarket has better profit and used is better for the environment.” Perhaps the most all-encompassing feedback was the view that everyone can do better to ensure that a strong supply of all options would improve things.

We should do all we can to ensure that all parties involved are receiving value, cost containment, and speed. Recyclers, an important supplier, were also asked to get more involved. “Better dialogue with recyclers; they need to understand we cannot pay large dollars for parts, or wait while they locate, pack, ship, and bill. Replacing my current aftermarket usage with used would be the most beneficial, but they have to have value: timely, good quality, at the right price. Getting all three from a recycler is inconsistent. It happens, but I cannot bank on it. Perhaps if every write-off was deemed a non-repair, there would be more availability and better pricing.” Generally, shops were receptive to the use of different sources of parts as appropriate – more than 70% were happy with the mix they used, even though they might take exception to how these decisions are made in individual cases. Still, the number of respondents who indicated they would not change a thing in how the system works was plentiful. The goal among those who wanted to effect some change was almost exclusively to get the customer, the car owner, a quality repair in a timely fashion, which is hard to refute.

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1751_Moneris_Jobber_Oct11_v1.indd 2

JOBBER NEWS / OCTOBER 2011

OCT TRACKER P16,17.indd 17

9/22/11 2:35 PM

17/10/11 11:16 AM

COVER STORY

RAISING THE BAR

ON UNDERCAR

By Andrew Ross

xposed to the elements, taking the brunt of rough

That volume of business has also made it an attractive

roads and stop-and-go traffic, undercar components

market for all manner of suppliers, and over the past few

live a generally miserable existence. So it is no surprise

economically challenging years, more and more price-

that brake and suspension components have become

focused level product has found its way onto the shelves of

such important categories for the automotive aftermarket.

those in the supply chain. Continued on page 20

OCT STORY p18,20,22,24.indd 18

JOBBER NEWS / OCTOBER 2011

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NOV east p19.indd 19

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COVER STORY

Continued from page 18

This influx of low-priced product has had a triple impact: first, it forced many who formerly were not intent on adding that level of product to their inventory to do so; it squeezed dollar margins tighter than ever; and it created reputation risk when some of these parts failed to perform. “In the late ’90s, we started seeing entry-level product coming into our marketplace,” says Ramzi Yako, of brake parts supplier ProMax Auto Parts Depot Ltd. “It did have a little impact on the marketplace, but entry-level product could not sustain any growth.” Prices kept going lower and lower on entry-level product just to gain market share, even though the cost kept going up, but prices and profit margins started shrinking. All in all, it wasn’t great news for many in the aftermarket. But fortunately, the tide seems to be turning. “Right now I am seeing more [garages] leaning toward the better stuff,” says Lorne Johnston, a veteran counterperson at General Auto Parts in Toronto, Ont., and the winner of the 2010 Jobber News Counterperson of the Year Award. “A lot of people have changed their tune. They have tired of the cheaper stuff that causes more problems than it’s worth.” He says that for brakes, the problem is noise that can cause technicians grief and comebacks. For front-end parts, premature failure can cause problems. “I’m not saying that it’s a line we carry, but there are parts out there that are just not up to snuff.” How bad can it get? He says he has come across cases where ball joints don’t even last long enough to get the car out of the service bay. “Lower the lift, and ‘ping’!” Johnston says that you have to know the customers and what they’re after. Too often, he adds, when an older application is being called for, it is a habit to lead with the price product. This is a mistake, as cars from the ’80s and ’90s might be a restoration now, and a perfect recipient for premium-level product. Overall, he says, the premium product is certainly on the resurgence, even in the hyper-competitive Toronto market. This shift is supported by research on the topic, at least as far as brake sales are concerned. According to Frost & Sullivan in a report published in August 2010, the sharp downturn in new vehicle sales is a major driver. In the friction segment, increasing demand for higherpriced premium pads and shoes is driving revenues higher, reported the researcher. It found that brake pads featuring the highest grade of friction were the top-selling lines for manufacturers with Good, Better and Best brands. In some cases, suppliers are consolidating their product lines, or 20

OCT STORY p18,20,22,24.indd 20

keeping the Good program for private-label brands that they do not market. To gain market share, suppliers should focus on product quality and customer service rather than price, suggests the researcher. But you have to know when a customer is turning to premium from price. Look for clues, such as when they’ve had a problem, and let them know there’s a better option. “That’s what we promote too,” says Doug Coates, vicepresident, Lordco Auto Parts, whose hundred-plus stores dominate the British Columbia market. “We really don’t have a low-end friction line. We only carry top-quality brands. We are trying to get better product, rather than go to the bottom. “Our Moog chassis business is still growing double digits. We do carry Federal-Mogul’s second line, but it is only 5% of our total volume.

Undercar parts take a beating. Technicians are relearning the importance of using high quality brake and chassis components to ensure a job lasts.

“We continue to keep promoting better problem-solving, OE-quality product. One line that I am particularly proud of is Beck/Arnley. They have an OE line which [comprises] up to 10 different brands. If you order a set of brake pads in that line, it is going to come in the original equipment box. Our customers are really going for that. They want a product they can trust to do the job.” He says that even with the products that Lordco sources directly, the company strives to have solid quality. “We are trying to keep improving our rotors. Because it’s under our brand, we can control it. We are paying more and we are selling that product at a little higher price than what you could in the market. Continued on page 22 JOBBER NEWS / OCTOBER 2011

19/10/11 9:51 AM

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04/10/11 1:09 PM

COVER STORY

Continued from page 20

“And we are actually going to be launching a more premium line. Instead of going to an economy brand, we are going to take it up a notch, for not a lot more money. “And we think that’s what our customers want.” He says that Lordco’s customers really aren’t interested in the price lines. “They can see it in the catalogue, but they want quality. At the end of the day, the way the market is going is that they want to fix the car and get their best opportunity to fix the car right the first time.” And, he adds, the 1,000 customers that attended the Lordco cruise in September are proof that the approach is the right one. “We learn a lot from our customers. I have a lot of respect for our customers. Talk to them about what they want and they will tell you. That’s what we follow. “Our premium customers – they are all over the province – look to us to give them the best product; on the best program, sure, but they don’t want anything less.” It’s as much a philosophy as it is a competitive approach. “We want to keep staying out of the lower-priced, whitebox stuff. We have done that throughout our history and we’re pretty proud of that.” Wayne Coutts, sales manager, automotive division, for Ideal Supply Company, a NAPA associate with 28 branches in Southwestern Ontario, says that he too is seeing a return to quality. “I’ve been at this a lot of years, and everything goes in

cycles. For a while, you’ll hit a cycle where everyone will drive the price down and everyone tries to sell a price-point item. “Then they run into warranty issues, and over a certain amount of time, they’ll creep back up to selling premium product again. “And in the last couple of years I have seen a steady increase in people going to a premium product.” While the economy line product sales are not at as low a level as stated by Lordco’s Coates – different markets breed different realities – it is in the range of 15% among some undercar products, still vastly outweighed by premium product sales. He says that he has seen this particularly in brakes and rotors. He says that it’s difficult to show people the differences, but there really is a difference in quality. He says, too, that some types of customers are more receptive than others. “We have really found that people in the preventative maintenance mode, the service providers who are starting to believe that, are the ones offering the quality products most [often]. They are having fewer comebacks, not having to do the job again; and they’re doing a better job for the consumer because of it, and for not much more money. “There is a certain cost to it,” he admits, “but when you look at what the consumer gets, and doesn’t have to come Continued on page 24

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JOBBER NEWS / OCTOBER 2011

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04/10/11 1:24 PM

COVER STORY

Continued from page 22

back in six months because of noise, or rust issues, they are better off for it.” Coutts thinks it is important for service advisors to offer options to car owners. They’re not always apt to go with the lowest-price product, even when they drive an older car, he says. “My son bought a ’94 Oldsmobile with 70,000 km and not a mark on it. So there are people who keep their vehicles a long time. So you should not decide that someone with a 2001 Buick doesn’t want to put on first-grade quality. There might only be 40 to 50 k on it.” And further to his assertion that shops embarking on the preventative maintenance strategy have more success with premium product sales, he offers that the connection to those shops attending training is unmistakable: business training begets premium brand sales. “And there are financial benefits too, in terms of dollar margins for everyone in the supply chain; and the consumer ends up with a better result too.” He says that as the cycles return to the premium, aftermarket professionals have to relearn how to sell premium, and the value of their service. “I do think we are learning. With the business management training and the technical training, I believe we have a better grade of service provider today. “We are making great headway with service providers, and I believe that when you start looking at reports like J.D. Power and Associates’ that I just read in Jobber News, how the aftermarket is doing a better job than dealers, part of that is the amount of training that a lot of jobbers are doing. “I believe we are managing to pull the industry ahead.” Of course, in the realities of the marketplace, there remains a place for economy product, but this should be handled carefully, says Jason Hathaway, sales and marketing, OE Quality Friction. “There is a very large market that would love to only stock a premium product on their shelves, but some customers are so price-sensitive that they give up quality, safety, and have a high rate of returns when using a lower-grade entry-level product.” He advises caution, as products that don’t meet the needs of the market, or accepted standards, will create problems. “The entry-level programs are down and dirty: cheap products that nobody is really sure what the product is or where it has come from. That’s a real problem in the aftermarket world. There are zero safety standards in the brake pad world. You would think having something that stops a van or school bus loaded with kids would have some kind of 24

OCT STORY p18,20,22,24.indd 24

legislation or standards that the product has to meet.” But, aside from voluntary industry standards, no such regulations exist. “In the past five years, we have seen higher than usual demand for quality brake pads; this could be because of lack of quality in entry-level product,” says Yako. “The major cost of a brake job is labour, not parts, so most mechanics do not want to warranty a brake job because of noise or fade or any other problems.

A resurgence in premium quality undercar parts demand is underway as an increasing number of shops realize the value of a reliable repair to their business and their customer.

“Entry-level product is popular among used car dealers. Most used cars have a warranty on brakes of 30 days or less, so generally they don’t care what type of brake pads they put on the vehicle.” Jobbers, says Hathaway, need to protect themselves by focusing on more than price. “Jobbers have a tough job trying to make sure they keep the right inventory for their customers’ needs. The biggest thing is keeping the installers happy. If you win with the mechanics that are installing the pads problem-free the first time, they will keep using your product.” Still, the trend is upward for premium-quality products. Award-winning counterperson Johnston says jobbers can make the counterperson more effective at selling premium by doing one simple thing: “You have to make sure that you have it on the shelf. You don’t want to upsell the guy today, and then tomorrow, when he calls again, have to tell him you don’t have it!” JOBBER NEWS / OCTOBER 2011

20/10/11 8:31 AM

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Wakefield p25.indd 25

05/10/11 7:13 AM

AAIW PREVIEW

Exercise Your Mind At The

AAPEX Learning Forum

Twenty-eight sessions are free of charge for AAPEX attendees. AAPEX promises to once again provide all members of the aftermarket with a full slate of exhibits, learning opportunities, and networking. Of particular note to Canadians is Canada Night on Tuesday, November 1. Contact the Automotive Industries Association of Canada for more details; visit www.aiacanada.ca.

Learning Forum, visit the AAPEX website, www.aapexshow.com.

AAPEX Learning Forum Sessions

s there are every year, there will be literally thousands of exhibit booths that can fill every day of an AAPEX attendee’s stay; but for those times when you want to exercise more than your feet, there is a hefty slate of learning opportunities. The Automotive Aftermarket Products Expo (AAPEX) Learning Forum will feature 30 education sessions, with specific classes recommended for general aftermarket audiences, warehouse distributors, manufacturers, retailers, auto repair shops, and parts stores. Sessions will take place throughout AAPEX, Tuesday, Nov. 1 through Thursday, Nov. 3, at the Sands Expo Center, Las Vegas, Nev. Twenty-eight of the 30 Learning Forum sessions are offered at no cost. The two additional Lunch & Learn sessions: “Not More Social Media! The Continuing Evolution of Social Media Integration within Marketing Campaigns,” and “New Fuel Technologies: Plug Into Profits with Electric and Hybrid Cars,” require registration and a $25 per person fee. All sessions will be accredited by the University of the Aftermarket and earn continuing education units (CEUs) toward the Automotive Aftermarket Professional (AAP) and Master Automotive Aftermarket Professional (MAAP) professional designations. Sessions will be held at the Venetian Hotel, on the Venetian/ Palazzo Congress Center Level 1, Marco Polo Rooms 701-706. The Lunch & Learn sessions will be held in Marco Polo Rooms 801/802. For information on any of the following sessions and the

OCT preview p26,28,30.indd 26

Tuesday, Nov. 1, 2011 • 2012 Aftermarket Outlook • Increasing Your Competitive Advantage by Communicating a Stronger Philosophy/ Positioning Within Your Markets • Import Parts Explosion: Are You Taking Your Share? • Market Intelligence: Don’t Do Business Without It! • The Four Critical Steps to Increasing Your Sales Management Leadership and Team’s Selling Success • Not More Social Media! The Continuing Evolution of Social Media Integration within Marketing Campaigns (Lunch and Learn session) • Building Successful Categories for Aftermarket Products • Your Business and Your Market Are Being Affected by Your State Legislature • QR Codes 101: What Are They and How Can They Grow Your Business? • Advances in Aftermarket Data Standards • New Vehicle Technologies and their Impact on the Future Wednesday, Nov. 2, 2011 • You’ll Love Working Here! The Performance Power of Workplace Culture • Packaging That Attracts Consumers: Winning Ideas to Generate Sales in the Automotive Aftermarket Continued on page 28

There’s fun stuff at AAPEX too. The one-of-a-kind Bosch Iridium Edition Mustang RTR, custom-built by drifting champion Vaughn Gittin, Jr., will be showcased in the Bosch exhibit. The Grand Prize in Bosch’s Iridium Mustang RTR Sweepstakes, the 2011 Ford Mustang RTR, will be on display and given away to the sweepstakes winner by Vaughn Gittin in the Bosch exhibit on Wednesday, November 2, 2011. JOBBER NEWS / OCTOBER 2011

05/10/11 9:43 AM

Rockland_Pub_8,125 x 10,875_Layout 1 11-09-29 14:37 Page 1

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ROCKLAND P27.indd 27

04/10/11 1:22 PM

AAIW PREVIEW

Continued from page 26

• Salespeople are from Venus, Installers are from Mars • Emerging Business Models: New Pathways to Growth and Profit • Selling Process Techniques: The New Age of Selling • New Fuel Technologies: Plug Into Profits with Electric and Hybrid Cars (Lunch & Learn)

• 2012 Aftermarket Outlook • 5 Trends in 5 Minutes: Trends Affecting the Aftermarket Environment • Your People Are Your Profits – How to Guide Your Employees to be Efficient, Effective and Extraordinary • How a Revived Auto Industry and Continued Emergence of Import Nameplates Will Shape Aftermarket Decision Making • Accessing Repair Information on Today’s Vehicles and the Role of NASTF • Making Packaging a Team Player in Brand Protection

50 INSTALL

Install 50 Goodyear Engineered Products And Choose Your Reward

Thursday, Nov. 3, 2011 • Advantages of Internet Access in the Repair Shop to Increase Productivity • Inside the Shop of Tomorrow and Aftermarket Telematics • Collaboration: Building Stronger Buyer/Supplier Relations • Mode $06 Data and Drive Cycle Diagnostics • Customer Relationship Management for Repair Shops: The Myths and Facts • Share the Knowledge – Gain the Profits • Catalytic Converter OBD-II Diagnostics

AAPEX New Packaging Showcase to Reflect Highest Standards of Design

hile learning sessions are of much importance, and exhibits can be flashy, AAPEX has never lost track of the fact that it is the opportunities that the products shown there present that drives traffic. And now, the packaging that best presents those products is a critical part of their success. The Automotive Aftermarket Products Expo (AAPEX) New Packaging Showcase will reflect the highest standards of design, thanks to a unique cooperative effort by AAPEX sponsoring associations and the Institute of Packaging Professionals (IoPP). Winners will be announced during AAPEX, set for Tuesday, Nov. 1 through Thursday, Nov. 3, at the Sands Expo Center, Las Vegas, Nev. For the second consecutive year, IoPP will lead the judging of the AAPEX New Packaging entries. Judges will evaluate packages for their ability to innovatively, cost-effectively, and sustainably protect, identify, and merchandise products.

Entries may be submitted in the following categories: • Economics: The package addresses a specific economic concern. •E nvironmental Impact: The package successfully addresses current and appropriate environmental concerns. • Innovation: The package demonstrates an application of a “new idea.” • Marketing: The structural design contributes to product image or shelf impact. • Performance: The package is easily filled, opened, dispensed, reclosed, and stored. •P rotection: The package successfully protects the biological, chemical, and/or physical integrity of the product. Extensive enhancements were made to the AAPEX New Packaging Showcase in 2010 as a result of the IoPP partnership, including adding category divisions to highlight features of the package, online judging by experts from IoPP, and an expanded onsite showcase display. This year, IoPP also will sponsor two packaging-related sessions in the AAPEX Learning Forum: “Packaging That Attracts Consumers: Winning Ideas to Generate Sales in the Automotive Aftermarket,” and “Making Packaging a Team Player in Brand Protection.” The New Packaging Showcase is located just outside the main exhibit halls at the Sands Expo Center.

For further details, contact your local Goodyear Engineered Products Rep. or call 1–800–ASK–GDYR www.goodyearep.com The GOODYEAR (and Winged Foot Design) trademark is used by Veyance Technologies, Inc. under license from The Goodyear Tire & Rubber Company. Goodyear Engineered Products are manufactured and sourced exclusively by Veyance Technologies, Inc. or its affiliates. ©2011 Veyance Technologies, Inc. All Rights Reserved.

JOBBER NEWS / OCTOBER 2011 Goodyear_Program2011_1-3pg_JobberNews.indd 1

OCT preview p26,28,30.indd 28

11-05-31 12:17 PM

05/10/11 9:44 AM

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The GOODYEAR (and Winged Foot Design) trademark is used by Veyance Technologies, Inc. under license from The Goodyear Tire & Rubber Company. Goodyear Engineered Products are manufactured and sourced exclusively by Veyance Technologies, Inc. or its affiliates. The Gatorback trademark is licensed to Veyance Technologies, Inc. by The Goodyear Tire & Rubber Company. ©2011 Veyance Technologies, Inc. All Rights Reserved.

Goodyear_RP_MetalCombo_JobberNews.indd 1 goodyear p29.indd 29

11-05-31 12:12 PM 04/10/11 1:17 PM

AAIW SEMA PREVIEW

New Vehicle Technology Center

to Debut at the SEMA Show

ure, there will be lots of hotlooking cars at the Specialty Equipment Market Association Show in Las Vegas, but one new feature worth a look is the Vehicle Technology Center (VTC). The VTC, located in Booth #35185 of the upper South Hall of the Las Vegas Convention Center at the 2011 SEMA Show, will have leading industry experts hosting seven fast-paced sessions and seminars that will identify and explain key industry trends, technologies, and SEMA initiatives. They will include more than 30 experts from leading automakers and suppliers, as well as specialty-equipment companies involved in all facets of specialty-equipment manufacturing and distribution.

Vehicle Dynamics Forum

Sports, will headline this exciting panel and discussion session.

The Future of Performance and Customization

The Future of Performance and Customization will be the focus Wednesday, November 2, 10:00 a.m. – 12:00 p.m. at the VTC Theater. The panel will include Stacey David of “Gearz”; Dr. Dean Tomazic of FEV; and Jim Campbell, vice-president of performance vehicles and motorsports for General Motors.

Vehicle Connectivity: Integrating Automotive and Consumer Electronics

Automotive technology and mobile electronics have extended far beyond the vehicle itself. Vehicle Connectivity is slated for Wednesday, November 2, 1:00 p.m. – 3:00 p.m. in the VCT Theater. Panellists will include Thilo Koslowski of Gartner; Anthony Levandowski of Google; Jessica Steele of Pandora; and Roger Berg of Denso.

The first of the workshops, the Vehicle Dynamics Forum, is scheduled for Monday, October 31 (the day before the SEMA Show officially opens), 1:00 p.m. – 3:00 p.m. Attendees of this session must preregister to get specific instructions on how to enter the show floor and VTC. The panel Performance Engines and will include Wilfried Eibach of Eibach Lubrication Springs; Mark Hellwig and Melanie This VTC session will be held SEMA has put a big push on to grow its refinish White of Hellwig Products; Tim Watts Thursday, November 3, 10:00 a.m. – segment, particularly over the past two years. of Superlift Suspension Systems; 12:00 p.m. The panel includes Lake SEMA Advisor Ed Browalski; Thomas Gillespie of Mechanical Speed Jr. of Joe Gibbs Racing; SEMA Board of Directors Simulation; Santhosh Jogi of dSPACE; and Paul Venhovens chairman Scooter Brothers of Comp Performance Group; of CU-ICAR. Ron Shaver of Shaver Specialty Racing Engines; and John Martin, formerly of Shell Research and Development.

Vehicle Technology Keynote

The Vehicle Technology Keynote, to be presented Tuesday, November 1, 9:30 a.m. – 11:00 a.m., will feature Paul Mascarenas, chief technical officer and vice-president of research and innovation for Ford Motor Company.

Clemson Deep Orange Project

SEMA’s innovative partnership with the Clemson University International Centre for Automotive Research (CU-ICAR) will be the subject of a press conference at the VTC Theatre at 12:00 p.m. Tuesday, November 1.

Performance Branding: Designing and Marketing to Enthusiasts

On the afternoon of Tuesday, November 1, 1:00 p.m. – 3:00 p.m., the discussion will turn to Performance Branding: Designing and Marketing. Myles Kovacs, co-founder of DUB; Stewart Reed of the Pasadena Art Centre; Chip Foose of Foose Design; and Beau Boeckmann, president of Galpin Auto 30

OCT preview p26,28,30.indd 30

Off-Road Racing and Performance Forum

Slated for Thursday, November 3, 1:00 p.m. – 3:00 p.m. in the VCT Theater, this session will address how the industry is evolving in this thriving marketplace. The panel will include motocross and off-road champion Ricky Johnson of TORC, Justyn Amstutz of NPA Auctions, and other speakers to be added.

Project Green Camaro

A special session scheduled for Wednesday, November 2 at 12:00 p.m. in the VTC Theatre will feature Source Interlink Media Group vice-president Doug Evans and Circle Track magazine editor Rob Fisher for a look at the Circle Track Project Green Camaro, and a discussion of how green technology and performance can not only coexist, but also create new business opportunities. Visit www.semashow.com for more information. JOBBER NEWS / OCTOBER 2011

05/10/11 9:45 AM

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NEW PRODUCTS Commercial Charger/ Starter Clore Automotive’s Solar Model No. 2001 is a 12-volt roll-around commercial jump starter that provides endless jumps for auto dealerships, auction houses, fleet operations, implement dealerships, and other starting environments with high vehicle counts and stubborn starting situations. The 2001’s power is delivered from a user-installed Group 31 battery (not included). It features retractable input and output cable to save space and provide easy cable management; five-foot jumper cable leads; large pneumatic wheels and a small footprint, allowing easy manoeuvrability on all types of terrain and in all shop environments; a rugged, impact-resistant case and industrialgrade construction; and more. Clore Automotive www.cloreautomotive.com Headlight Aimer Offers Printer Option, Language Selection Fore-Tenn Marketing has introduced the Vision II Pro Image Processing Headlight Aimer by American Aimers, Inc. Its patent pending design offers innovative features and technology, including a colour LCD display

for bright detailed images, automatic levelling for floor slope, automatic positioning for vehicle misalignment, and a select language screen that allows the operator to choose between English, French, or Spanish as a preferred language. An optional printer and dust cover are also available. Fore-Tenn Marketing www.fore-tenn.com SBI Announces New Web-based Catalogue S. B. International, Inc.’s Web-based valvetrain parts catalogue provides real-time updates on additions to the company’s comprehensive line of replacement valvetrain parts for close to 3,000 applications, including late-model domestic and import passenger car, light truck, performance, marine, agricultural, heavy-duty, and forklift/industrial. Based on SBI’s CD-ROM catalogue, the SBI Web-based catalog allows the user to search by part type/ part number, vehicle type, engine manufacturer, or specific engine IDs and make codes. Also, quick SBI part lookups can be done using any one of several applicable progressive-size search functions, as well as with an OEM/ aftermarket supplier part number interchange search function. S.B. International www.sbintl.com Continued on page 34

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Permatex’s new Permatex Wiper Restore revitalizes wiper blade rubber to extend blade life and improve overall wiper performance. The product’s water-based, silicone emulsion formula features a special surfactant that aids in cleaning, softening, and conditioning the wiper blade rubber to make it more pliable, which increases wiper flexibility and helps to minimize chatter, streaking, and skipping. Permatex Wiper Restore works on both old and new blades, is alcohol- and petroleum-free, and will not deteriorate the blade rubber. It comes in a specially designed single-use 1.25 g pouch, with enough conditioner for up to three blades. Permatex www.permatex.com ATF for Type HP/Matic J Beck/Arnley’s new Premium OE Automatic Transmission Fluid for Type HP/Matic J vehicles is a superior quality formulation of high-performance base oils and carefully selected additives, including a unique mix of friction materials for the specific pressure settings present in Subaru, Nissan, and Infiniti automatic transmissions, which helps promote optimum shift quality. Use Beck/Arnley Premium OE Automatic Transmission Fluid for Type HP/ Matic J where Type HP, Matic D, or Matic J automatic transmission fluid is required for Subaru, Nissan, Infiniti, and other make vehicles. Beck/Arnley www.beckarnley.com Expanded Rear Wiper Blade Line Federal-Mogul has expanded its popular offering of Anco rear wiper blades to include 16-inch applications for more than 2.6 million late-model applications, as well as an additional 12-inch blade that covers nearly 500,000 Toyota 4Runner models. Featuring original equipment look and fit, Anco rear wiper blades provide excellent wiping performance and reliability as well as fast, easy installation without the need for extra connectors. New Anco rear blade coverage includes Lexus GX470, RX350 and RX450h; Toyota Prius and Sienna; Honda Insight and Odyssey; Subaru Forester and Impreza; Chrysler Town & Country; Dodge Caravan; Volkswagen Routan; and Toyota 4Runner (2003-2009). Federal-Mogul/Anco www.AncoWipers.com Continued on page 36

OCTOBER Product p32,34,36.indd 34

JOBBER NEWS / OCTOBER 2011

05/10/11 9:14 AM

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04/10/11 1:07 PM

NEW PRODUCTS Dodge Diesel Throttle Position Sensors

for general component inspection. Its power equals that of a 75W lamp, and it has an inspection range of up to 6 ft (1.8 m) or more. The Dual-Max is extremely compact and lightweight, weighing just 5.8 oz (164 g). Tracerline Products www.tracerline.com Four-Post Lift

Airtex Engine Management has introduced two non-contact throttle position sensors that eliminate wear issues and significantly reduce repair costs on Dodge Ram 2500 and 3500 diesel trucks. The new Airtex TPS sensors, now available for 1998-2007 Ram 2500 (Airtex #5S5351) and 3500 (#5S5352) models, feature problem-solving “Hall Effect” integrated circuitry that eliminates the wear-intensive contact associated with OE parts and aftermarket alternatives. Repetitive motion of the contact fingers across the resistor board on conventional sensors can wear holes in the board, causing engine hesitation. The new Airtex parts’ innovative design eliminates this contact and is also significantly more resistant to shock and vibration. Airtex Engine Management airtexproducts.com Extended Life Blue Coolant for Asian Vehicles Beck/Arnley introduces Extended Life Blue premium OE extended life antifreeze/coolant as part of its new, comprehensive line of high-quality OE fluids specifically designed for Asian vehicles. This ethylene glycol-based, pre-diluted antifreeze/coolant was created for Asian engine cooling systems that specify the use of “extended life” antifreeze/coolant. Beck/Arnley’s Extended Life Blue antifreeze/ coolant utilizes Phosphated Organic Acid Technology, also known as Hybrid Organic Acid Technology (HOAT), so it contains no amines or borates, and is free of silicates that may harm water pump seals by causing gel formation that can clog the radiator. Beck/Arnley www.beckarnley.com Dual-Headed Flashlight for Refrigerant Leaks Tracer Products has introduced the new Tracerline TP-9355 Dual-Max, a cordless, multi-function, dual-headed LED flashlight that is ideal for refrigerant leak detection in all types of air conditioning and refrigeration systems. The powerful Dual-Max flashlight features a high-flux blue light LED on one end for fluorescent leak detection, plus a high-flux white light LED on the opposite end 36

OCTOBER Product p32,34,36.indd 36

Mohawk Lifts introduces a new TR-30 four-post 30,000 lb. capacity auto and truck lift. Mohawk’s TR-30 features all-position safety locks, pivoting approach ramps, and a 6’11” lifting height. Mohawk’s TR-30 is ALI/ETL-certified to meet the one and only nationally recognized safety standard for vehicle lifts. The Mohawk TR-30 is designed, welded, and manufactured in the U.S.A. Mohawk Lifts www.mohawklifts.com Engine Bearings For Nissan Engines King Engine Bearings has introduced new rod and main bearings for Nissan engines in its popular XP Engine Bearings line. The enhanced tri-metal, copper lead construction with nickel barrier of the XP Bearings features King’s proprietary SecureBond advanced adhesion process, which provides superior stability between the top and intermediate layers. King XP Bearings for Nissan applications include rod bearings and main bearings for SR20DE, SR20DET non-GTIR engines. These XP parts are available in STDX, STD, and 010. Extended sizes may become available in the future. All King performance bearings feature greater rod bearing height that improves bearing to bore contact/heat transfer and reduces spin potential at high RPMs. King Engine Bearings www.kingbearings.com

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ENGINE TECH

Keeping It Clean:

Avoiding Injector Contamination Fuel Injector Service for 2001-10 GM 6.6L Duramax Diesel Engines

uel injectors on 2001-10 GM 6.6L Duramax diesel engines may become contaminated during engine servicing, potentially leading to external and/or internal fuel leaks. The cause is debris between the injector line and the injector line nut, which may fall into the injector fuel inlet upon removal. To avoid this, refer to the following procedures for servicing the fuel injectors and lines.

Removal of Fuel Injector Lines

1. Before removing the fuel injector line, use regulated compressed air to blow any debris from between the fuel injector line and the fittings. Wipe the two fittings clean of debris. 2. Spray Super Lube, P/N 10953474 (in the U.S, P/N 12346241), or a lithium grease equivalent, between the fuel injector line and fittings to assist in containing any debris during removal. 3. Remove the fuel injector line and upper and lower valve covers. After the fuel line is removed and the fuel injector inlet is exposed, do not use compressed air to clean debris. Using compressed air can allow debris to enter the fuel injector inlet and damage the fuel injector. 4. Immediately after removal of the lower valve cover, use a vacuum source to remove any contamination in the fuel injector inlet.

Fuel Injector Cleaning and Inspection

The fuel injector must be cleaned with the proper cleaning equipment. Do not use abrasive cleaning methods such as a metallic brush to remove deposits. Cleaning an injector with improper tools may damage the fuel injector. 1. Use a soft bristle non-metallic brush and fuel injector cleaner, P/N 88861804 (in the U.S., P/N 88861802), or equivalent, to remove any deposits from the nozzle tip and the copper washer sealing area before reinstallation. 2. Inspect the fuel injector nozzle tip for cracks, dents, or other damage. 3. Inspect the nozzle tip for any signs of discolouration (dark yellow, tan, or blue) due to excessive heat. Note: If 38

OCT ENG TECH P38,40.indd 38

any damage is found, replace the fuel injector. Clean and examine the fuel injector bore before installing the new fuel injector. Either new injector sleeves or a different casting may be required if damage exists in this area. 4. Clean the fuel injector high-pressure lines by performing the following steps. 5. Inspect the fuel injector high-pressure line for excessive corrosion, scale, or rust to the sealing surface. 6. G lass beads clean rust, scale, and corrosion from metal parts without any damage. Continued on page 40

The AERA Technical Committee generated this Tech Bulletin (TB 2563). It is reprinted here with permission of the AERA. Visit www.aera.org for more information.

JOBBER NEWS / OCTOBER 2011

05/10/11 9:48 AM

SBI p39.indd 39

04/10/11 1:23 PM

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Continued from page 38

7. Use an abrasive blasting cabinet with medium-size media glass beads to clean the high-pressure lines and fittings. Note: Medium size media glass beads have a cleaning and peening action, and do not remove metal. They do not have the quick abrasive action of sharp-edged media. Important: Prepare the fuel lines before placing in cabinet. Black plastic electrical tape or equivalent will protect the fittings outside the coating from being removed with the media. This must be done to all sixteen high-pressure fittings.

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OCT ENG TECH P38,40.indd 40

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8. U se pipe cleaners to block the ends of the high-pressure lines so the abrasive blasting glass beads will not contaminate the inside of the pipes. Before removing the pipe cleaners, clean them by using regulated compressed air to blow away any debris and/or media glass beads from the pipe cleaners. 9. When using an abrasive blasting cabinet or equivalent, make sure you only clean the inside of the fittings and as much of the fitting threads as possible. 10. There may be some area of the fitting or line that the glass beads did not clean very well. Disregard any surface that did not clean up, as long as the area of the fitting is clean at the bite edge or sealing surface. Replace any suspect high-pressure line if the glass beads cannot remove corrosion, scale, or rust from the sealing surfaces, and/or pitting or any other damage is found. 11. After cleaning all of the fuel injector high-pressure line fittings with the glass beads, clean by using compressed air to blow any debris and/or media glass beads from inside and outside of all the fittings and lines. Afterwards, wash thoroughly with All Purpose Parts Cleaner, P/N 88901247 (in the U.S., P/N 88862650 Brake Parts Cleaner) or equivalent. Repeat this process until all of the debris and/ or media glass beads have been removed from the fittings and lines.

Fuel Injector Installation

Install the fuel injectors and lines using the proper tools, wrenches, and torque valves. An under-torqued fuel injector line will not seal properly, and an over-torqued fuel injector line may damage the fuel injector fitting. An improperly sealed or damaged fuel injector line or fuel injector fitting may cause a fuel leak. 1. Run the engine at idle for 10 minutes. Inspect for external fuel leaks while the engine is running. 2. Stop the engine and wait 10 minutes, then check the engine oil level. This will be the initial oil level. 3. Run the engine at idle for 5 minutes while commanding the fuel pressure to 160 MPa using a scan tool. 4. Stop the engine and wait 10 minutes, then check the oil level. • If the engine oil level is more than 4.7 mm (3/16 in.) above the initial oil level, refer to Fuel Leak Diagnosis (Inside of Engine), and Fuel in Engine Oil procedures in the Engine Controls and Engine Mechanical sections of the AERA publications respectively in the appropriate service information. • If the engine oil level is less than 4.7 mm (3/16 in.) above the initial oil level, the repair is complete.

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05/10/11 9:49 AM

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9/8/11 3:15 PM 04/10/11 1:06 PM

For the Counterperson

October 2011

Knowledge Building:

TOP BATTERY TIPS

FOR CONSUMERS

here is little doubt that your battery sales will ramp up as the nights get longer and the temperatures drop. TAnd it is also likely that more than a few consumers will find their way to your door looking for the right advice. While some information may seem like common knowledge to you, such as how a starting and charging system works, this may not be knowledge that every consumer has – or even really understands. Accordingly, here are some basic tips that will be useful for you to pass along to the consumer, and also to pass along to your trade customers so that they can do the same.

Why Your Car Won’t Start

While often it is, in fact, the battery that is at fault when temperatures start to drop, it could also be the case that interior or accessory lights have been left on (today’s cars have far more of these than previously), or it could be due to an alternator that is not charging the battery properly. The battery has to power the starter to make the engine rotate before it can start running itself. In practical terms, after that the battery is just along for the ride.

The average life of a battery in Canada is about 4-1/2 years, but several factors can drastically shorten its life. Some examples include: Extreme temperatures. Faulty vehicle charging system. Running electrical equipment with the vehicle off. Frequent short-distance trips. Trips of less than 20 minutes may not give your vehicle enough time to fully recharge the power depleted from the battery when the vehicle was started. If the battery is one or two years old it should still be operating well, and a starting problem may have another cause. Simple tests performed by many auto parts stores and service stations can determine the health of a battery and of the alternator, the two key components in the system. Why Your Battery Died When It Got Cold

“It started fine yesterday.” There is a direct correlation between how much energy a car battery can generate, and the temperature outside. In addition, Continued on page 44

OCT COUNTER p42 44.indd 42

05/10/11 8:57 AM

Lorne Johnston, General Auto Parts, Toronto, Ont. 2010 Counterperson of the Year

Do you know who the

Best Counterperson is?

The 2011 Jobber News Counterperson of the Year Award seeks to reward the very best of the frontline workers in the Canadian automotive aftermarket. Anyone can nominate a counterperson, and anyone is eligible. Evaluation and selection of the winner will be made on the basis of experience, training, as well as customer and store owner comments. While not mandatory, participation in and organizing of training clinics, proficiency in computer cataloguing programs, and professional certifications such as Red Seal and ASE Parts Specialist will all be , considered strongly in a nominee s favour.

Formally named the Abe Schwartz Counterperson of the Year Award, it is named after the late owner of century-old British Auto Supply in Toronto, who worked behind the counter for more than half a century.

The 2011 Jobber News Counterperson of the Year Award is sponsored by:

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Nominate your choice online at www.autoserviceworld.com or complete and mail the form below to: Jobber Awards c/o Counterperson Award,12 Concorde Place, Suite 800, North York, ON M3C 4J2 or fax to 416-510-5140.

I nominate:__________________________________

The reason I believe this nominee deserves this award is:

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COUNTER PERSON 2011 p43.indd 43

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04/10/11 1:11 PM

Continued from page 42

it actually takes more power to get the engine turning over when it gets colder. A battery will typically only provide 65% of the power at zero degrees Celsius that it did in summer, and only 40% once the temperature drops to minus 18 degrees C, all while the energy demands to start the car increase rapidly. So it is easy to see how a battery that may be providing less power than it did when new can become easily overmatched when the temperatures really drop. In addition, as the days get shorter, people use their lights more and operate heater fans; along with slower driving conditions, which could mean time spent at idle when the battery is not being charged by the alternator, this adds to the load on the battery. Ironically, although most people think of batteries failing in the winter, it is in fact summer weather that really hurts them: the high temperatures can literally boil off much of the electrolyte in a battery, severely disabling it. Warm weather means starting duties are relatively easy, though, and that’s why a badly damaged battery can go unnoticed until the weather gets cold. There is a saying in the automotive industry that rings true: “Hot weather wounds batteries; cold weather kills them.” What’s the Right Battery?

Batteries have been the subject of standardized ratings for many years; however there are a few numbers you should be aware of, and a few you should be wary of. The first is the battery size and style that is right for your car. The Battery Council International (BCI) group size tells you

which battery fits in your car. This is important, because not every battery output rating is available in every size. Here are some examples of different group sizes for different car models: Size 75 – General Motors cars; Size 65 – big-bodied Ford, Lincoln, and Mercury cars; Size 35 – Honda, Nissan, and Toyota cars; Size 34 – Chrysler cars; and Size 34/78 – with two sets of terminals to fit some Chrysler and some General Motor models. Cold Cranking Amps (CCA) is the most important output rating of a battery. It is listed on every battery and in the owner’s manual. This number is the rated output of the battery at minus 18 degrees C. Do not confuse it with Cranking Amps (CA), which is a much higher number, as it is rated at 0 degrees C. Always choose a battery that is as close to but always the same or higher CCA than the rating stated in the owner’s manual. Reserve Capacity (RC) is also an important number, as it states how long you can run accessories (lights, radio, etc.) without charging, in minutes. Warranty is also an important consideration, but not just because of the peace of mind it offers. The internal construction of a battery is not visible, but better, more robust batteries will have longer warranties. Typically a warranty will have a period of total replacement, which could be from less than two years to more than four, with a prorated warranty outside this period – in some cases to seven years. Some warranties also include a free jump start for a certain period. The best advice is to choose a battery with the appropriate battery rating and the best warranty that fits your budget.

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05/10/11 8:59 AM

probably clean up some emissions off-throttle, which is good and healthy for the sport. When you also consider the change NASCAR made this year with the E15 fuel, the sport is definitely heading in the right direction and doing some really good things.”

engineers are second to none, and it is that realization by NASCAR that kept fuel injection on the sidelines; the NASCAR people know how to monitor cheating with carbs, but they weren’t so confident about being able to do it with fuel injection. “Almost all of the engineers that work in Dodge Motorsports

Automotive Internet Directory Visit these companies directly at their web addresses or check out the growing list of Hot Links at www.autoserviceworld.com. To find out how your organization can be included in this directory and on the web, contact aross@jobbernews.com

AUTOMOTIVE PARTS & ACCESSORIES Goodyear Engineered Products www.goodyearep.com/aftermarket www.goodyearbeltsandhose.com The officially licensed belt of NASCAR. Gatorback, the quiet belt. You can never replace Goodyear quality. NGK Spark Plugs Canada Limited www.ngksparkplugs.ca The World Leader in Spark Plugs, Oxygen Sensors and Ignition Wire Sets. Used by 87% of the World’s OE Manufacturers S.B International Inc. www.sbintl.com “We keep engines humming”

AUTOMOTIVE RECYCLERS Carcone’s Auto Recycling and Wheel Refinishing www.carcone.com With over 32 years of experience Carcone’s Auto Recycling & Wheel Refinishing is your one stop for quality recycled products and wheel refinishing needs. Call today at 1-800-263-2022 or visit us on line at www.carcone.com Standard Auto Wreckers View Our Online Inventory @ www. standardautowreckers. com or call 416-286-8686. Experienced Shipping Department to Ensure Parts Arrive Safely.

HAND CLEANERS GOJO Industries, Inc. www.automotive.gojo.com GOJO is a leading manufacturer of skin care products and services for many marketing including automotive and manufacturing. GOJO continues to pursue a commitment of creating well-being through hand hygiene and healthy skin.

OCTOBER INTERNET p45.indd 45

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28 Page #

Agna Brakes (www.agnabrakes.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IFC AIA Canada (www.aiacanada.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 ATP Inc. (www.atp-inc.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 AUGUST COUNTER p26,28.indd Autologue Computer28Systems (www.autologue.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 12, 13 Battery Direct (www.batterydirect.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Chevron Global Lubricants (www.chevronlubricants.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Delphi Product & Service Solutions (www.delphi.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Epicor Software Corporation (formerly Activant, www.activant.com) . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Equus Products Inc. (www.equus.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 FBS Distribution Co. Inc. (www.fbs-online.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Jobber News Counterperson of the Year Nomination Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Mevotech Inc.(www.mevotech.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OBC NGK Spark Plugs Canada Ltd (www.ngksparkplugs.ca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Mann + Hummel USA (www.mann-hummel.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Moneris Solutions (www.moneris.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15, 17 OE Quality Friction (www.oeqf.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Proforce Automotive (www.proforceautomotive.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Promax Auto Parts Depot (www.autopartsdepot.ca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Ride Control LLC (www.gabriel.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Robert Bosch Inc. (www.bosch.ca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Rockland World Parts (www.rocklandworldparts.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 S.B. International (www.sbintl.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Transit Warehouse Distributor (www.transitwarehouse.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 University of the Aftermarket (www.northwood.edu/aftermarket/) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Valvoline Canada Limited (www.valvoline.com) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IBC Valvoline Motor Oil Mythbusters Quiz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Veyance Technologies (Goodyear Engineered Products, www.goodyearep.com) . . . . . . . . . . . . . 28, 29 Wakefield Canada (www.wakefieldcanada.ca) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 JOBBER NEWS / OCTOBER 2011

The E.R.I. Group

Kerr Machine Shop Group Inc.

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Editorial Comment

THE CHANGE GAME

T From Our Pages Vol. IV, No. II, November 1935 Atlantic City Calls Feverish activity will be the order of the day in the huge Atlantic City Auditorium for some time prior to the opening of the great Automotive Service Industries Show. This year there will be 335 exhibitors using 846 booths and covering 85,544 square feet of space. Those of us who think back . . . must admit that the growth has far gone beyond our wildest dreams. You, Mr. Jobber, can find the opportunity of a lifetime in attending these shows. You can sit in sessions with hundreds of fellow jobbers who are facing exactly the same problems you face. Somewhere you will find one who has a solution which is yours for the listening. Jobber News 80 Years of Serving the Aftermarket 1931-2011

NEXT MONTH

November will feature Jobber Technology, with a special focus on getting mobile. Plus Undercar, Chemicals, and Heavy-Duty Truck Opportunities. 46

OCT EDITORIAL p46.indd 46

hose who read last month’s editorial will recognize this as a Part II of sorts, though I hope you will agree that it stands alone, too. The basic theme of last month’s comment was that statistics are great as long as you know how to interpret them, which few do, and it is very easy to get caught up in the “inevitability” mindset. The key for every business is to look at the things you can change to improve your situation – and to the credit of many of you out there, this is not an earth-shattering revelation. But what can you change? Well, just about everything, if you’re willing to do so. For a business, though, it’s often that willingness which is lacking. In the most extreme case, management of a company might be so unwilling to change the way the business operates that they actually allow the company to fail rather than rethink it. For most, however, it is less extreme; there are things every business can change to improve the way it operates. There are five areas every business should look at on a regular basis and in good, honest detail. The benchmark for much of this has to be purely financial. You can decide not to do something for human factors, but initially at least, you should only focus on the money. Your customers: Are you attracting the kind of customers you need, and are you dealing with your existing customers in the way you would like? The first part is a tough thing to change; the second slightly less so, but still a tough nut to crack. To put it simply, if you don’t have the customers you want, go out and talk to the ones you do want and find out why they’re not buying from you. Then ask yourself if the changes you’d have to make are worth it financially. It’s as simple as that. Really. Enough said. Your suppliers: Are they helping you reach your goals? These days, suppliers who go the extra mile to do more than just sell you products should be more important to you than ever. Judged purely financially for the business, a supplier that helps you build your business is a major part of your future success. A personal relationship with a supplier rep should be what drives him to work with you to help you achieve success; it should not serve as a replacement for it. Your systems: Are you still having to put a new shovelful of coal into your computer every morning? Time to ante up. But even if you have a relatively modern system, is it user-friendly? Does it give you the information and controls you need easily? Does the support work for you? Talk to your counterpeople and accountants. Talk to your customers about the paperwork. Are they really happy with the system, or do they constantly have to devise “workarounds” to get what they want? In short, does it work for your business and people, or do they work for it? Your people: Staffing is the biggest challenge any business has. Making a change has its risks, but you know that. I’m not for a minute suggesting that you callously dismiss any member of your team for a misstep, but if you have a chronic underperformer, a disruptive force, he needs to go as quickly as possible before he infects the entire company. For those who are willing to grow with you, make sure they are trained constantly, and rewarded well. Have an open-door policy for every member of the company to bring helpful ideas. And remind them regularly that this exists. You: Yes, you can change. In the words of iconic comedy character Red Green (with apologies to all the women reading): “I’m a man, but I can change. If I have to. I guess.” Yes, you can change the way you approach the business, and might have to if you are to see different results. All of these things are well within your grasp to change. And, in my experience, they can be very rewarding changes to make. Andrew Ross, Publisher and Editor aross@jobbernews.com JOBBER NEWS / OCTOBER 2011

05/10/11 9:01 AM

ÂŠ 2009, Ashland Canada Corp. *Source: Thomas Penway Research Poll of ASE Mechanics in the United States

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A SPECIAL SUPPLEMENT BY

40 Dedicated to Serving

Customers

for 40 Years

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40 BERCO AUTOMOTIVE SUPPLY

Dedicated to Serving

Customers for 40 Years

Berco Automotive began as so many businesses do: growing from

“Back then – forty years ago – we didn’t know the things

the idea that its founders could do a better job than the

we know now,” says Chester with a smile, “but we did know

company they were working for.

that nothing was easy. It was going to be tough. We would

Brothers Chester and

have to go through the meat

Nick Salvati had already

grinder, as they say. That’s

built strong reputations with

what we had to do. We had

customers as two men who

to really struggle.

know how to provide expert machining

and

engine

rebuilding services.

“There were a lot of customers between us, and we had a good reputation. They

What they had under-

knew what capabilities we

estimated was just how

had, and we got so busy,

quickly

working day and night, to

that

reputation

would take hold in their new venture. And how that was a challenge too.

make this thing work.” After 40 years, Berco Automotive still remains a family affair. (L-R) Chester Salvati, son Nick Salvati Jr., Nick Salvati’s son Anthony, Nick Salvati Sr., and Chester’s son Frank.

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Nick Salvati and Chester Salvati knew they had a lot to offer when they opened their doors, but demand was so high they were forced to work seven days a week to keep up.

“We both had good jobs, but we always wanted to go on our own,” says Nick. “In December 1971, we put equipment in the shop and started to work seven days a week.” And that’s the way it stayed for two years: seven days a week, and long days at that. “One day I looked at Chester and said, ‘We have to hire someone or we’re both going to end up in the cemetery!’” says Nick. And with that Berco’s staff started to grow, though only a little at first. Finally Chester and Nick could at least take Sundays off. Today the member of Modern Sales (37 years and counting) boasts 15,000 square feet, about half dedicated to the machine shop, and some 25 employees, including five counter staff. The tone for that success was set at the beginning. “It was a tough market back then, but we had a lot of power in our hands,” says Nick. “We were fully experienced in the machine shop, and we had the equipment: crank grinder, line bore machine, etc. We were the only ones to handle some machining jobs. “If you machine a block ten thou,” he says by way of example, “when you do the rods, you have to de-stroke the rods ten thou. Not too many people knew about this, and we had the experience.” For its first decade, Berco remained focused on the automotive machining business, but starting with the late 1970s, some critical changes were made. “Any business is competitive,” adds Chester. “But through the recession of the early ’80s, we had to make changes. This is when we started selling automotive parts and taking on construction and industrial in the shop. And it was full speed again.” Before the shift, Berco Automotive earned 80% of its income from the machine shop, with 20% coming from incidental parts sales. “Around 1980, we started to see 50/50; now we’re almost 70/30 parts to machine shop.” Through all those changes, says Chester, success has come through the efforts of staff, including many long-term employees. “As with any business, what makes us a success is the people. We’ve had some here for as long as 35 years. “We help our customers any time they need information and need to make a decision. Our people are the experienced ones. They know their parts and know what is needed to make a successful job.”

Today, a very capable office staff helps keep Berco Automotive humming smoothly. (L-R) Camelia Barz, Chester Salvati, Lily Fei, Nick Salvati and Emilee Young.

While Chester and Nick can look back at some fond memories, they don’t dwell on it. Nick says they’ve always had a eye on the future, but with an optimistic outlook, even decades ago, when he recalls the pessimistic attitude of many. “The days of the points and condenser were dying away. The engine business was going to die out. But as of Continued on page 4

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today, with computers and sensors, there is more market and more business for our industry. There is so much more, and this is where there has been change; and this is better for any jobber business.” Of course there have been changes, many of them. In the early days, Berco ran on the sweat and muscle of Chester and Nick. Now it runs on data. “Any engine or cylinder, we have the data and the specs that are required. Most of the jobs we do, we send the sheets so we can be sure the job is right.” The machine shop is well equipped with a full selection of equipment for blocks and heads, although the crank grinding business isn’t what it used to be. Berco is also one of the few shops in Toronto that can handle some of the bigger diesel truck and industrial engines. Chester and Nick believe that Berco is one of the biggest and best equipped shops in the city. 4

While the auto parts business now makes up a large part of Berco’s sales, the machine shop remains a critical part of the operation. At top, Remo Saraceni takes a moment from working on a cylinder head. Frank Quintieri shows off the Serdi 60 valve seat and guide centre (above right) and the Rottler S8M surfacing machine (at left).

Of course, with 70% of business now coming from auto parts sales, investments in ensuring that the data and equipment are there to help those customers has been an important factor. Perhaps it is because both Chester and Nick know the value of the right equipment from their early days in the shop, or perhaps it is the influence of the next generation of the Salvati family – Chester’s sons Nick and Frank, and Nick’s son Anthony – but Berco has always tried to have the right equipment at hand. Recently, Berco added the Epicor Eagle system. “It has already helped us in many ways to do better things and get better information,” says Chester. “We always tried to stay on top of those things. There are no more of the days of doing things manually; everything is computerized.”

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Bill Wells works on a large diesel crankshaft.

“With the increasing complexity in the marketplace out there – we have all experienced it – and parts proliferation, you need to manage your inventory and your numbers so carefully; you need up-to-date systems that can give you the analysis and the reporting that you need,” says Anthony Salvati. “The old systems will give you the basics, but you need to be able to drill

down and find out where the opportunities are.” Anthony says that Chester and Nick have always been forward-looking, having been computer-driven from the early 1980s, but the recent change is a big leap forward. “This new Eagle is the step into the next century. You can pull up a report, click a button, and it will drop a report into Excel for you. I can look at things in lot of different ways. “The key these days is to have the right parts on hand – we deal with everything from Honda Civics to Ford tractors – and because we are so diverse, we do need the system. I can’t even imagine how you could run a business without a system like this.” Another important key to Berco’s success has been its membership in Modern Sales Co-Op, which goes back some 37 years. “And the relationship has really grown,” says Anthony. He points out one of the many things that have created a good match between Berco and Modern Sales. “[Our business] has worked well with Modern and its diversification strategy. If you look at some of the products we Continued on page 6

Excellence.

Congratulations on 40 Years of Excellent Customer Service.

www.activant.epicor.com

1-800-380-9015

automotive.marketing@epicor.com

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have in the warehouse, it is not just pads and rotors; it helps us cater to the industry customers, the construction guys who we deal with – I can sell a guy a shovel if he wants one – and that helps us in offering something [unique] to our customers, since we weren’t strictly automotive anyway. It has mirrored really well with us.” Berco is of course a family business, and now with three family members besides Chester and Nick, it is looking down the road at continued success. And then there is the extended Berco family, too, who can take some comfort in the knowledge that you don’t get special treatment just because your last name is Salvati. “Nick and Chester didn’t play any favourites with us,” says Chester’s son, Nick. “We were like any other employee; they were tough on us, and it helped us over the years with discipline.” “The first day for me was like everyone else: you were handed a broom and told to

You don’t repair just one vehicle make. We don’t make parts for just one either. Ford, Nissan, Audi, GM, VW and more. Delphi OE DNA. It’s inside every one of our parts. Learn more at delphi.com/am ©2011 Delphi Automotive Systems, LLC. All rights reserved.

Congratulations Berco Automotive on 40 years! 6

A very capable sales staff keeps customers happy. Clockwise from top left: Frank Salvati, Douglas Simpkins, Graham Mumberson, and Nick Salvati. Anthony Salvati (middle left) handles much of the IT responsibilities.

clean,” adds Anthony. “You started by cleaning the floors and driving the delivery truck. You did the dirtiest jobs.” “The one thing that both taught us along the way was that the customer is always right,” adds Chester’s son, Frank. “We built our reputation on finding parts that nobody else would find. That helped us build a very strong reputation, and that is one I think that stayed with us every day. “When we come through, it is a win-win situation for us and the customer. They trust us. That is one thing that was instilled in us early: the payoff may not be today, but in the long run it will pay off. “That customer-service focus is at all different levels of the company. That’s the culture we’ve created, and the new people coming in really pick up on that.

2011 SPECIAL SUPPLEMENT

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“At the end of the day, it is about providing that superior customer service; everyone from the driver to the person inside has that attitude. It is very easy for the new people to pick up on that.” As it happens, their conversation with Jobber News was the first time that Chester Salvati had heard the next generation talk about what they see in the business, and how they feel about what they have learned. “It is the first time I have heard this from them,” he beamed, “and that makes me proud and happy. I think that they will do what they are supposed to and they will have no problem.” Chester Salvati and Nick Salvati pose with a sign that says it all. “I had some outside experience,” says Anthony. business and working with people you have known your whole (For 14 years he worked in finance for one of the world’s life. You work hard when you need to work hard, and you have largest consumer-goods companies.) “And being the next fun when you need to have fun.” generation, there is a huge source of peace coming into the “It’s a different challenge every day,” adds Frank. “It’s family company. In the corporate world you can feel a bit lost, wonderful. We’re ready to do another forty years.” but it is so much more satisfying knowing you are in a family

CONGRATULATIONS TO BERCO AUTOMOTIVE ON YOUR th ANNIVERSARY

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2011 SPECIAL SUPPLEMENT

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On behalf of fellow Modern Sales Co-op members, its Board of Directors, and staff, it is our pleasure to congratulate

Chester and Nick Salvati

on celebrating their 40th anniversary in business. This is quite an accomplishment, and one that they should be proud of. To achieve this longevity, you also have to have dependable sources of supply, with quality suppliers, and competitive pricing. We would like to thank Berco Automotive for choosing Modern Sales Co-op 27 years ago to be their primary source of supply. As Chester and Nick take on much lesser roles within the company, they are in good hands with the strong capabilities of young Nick, and Anthony Salvati, who are now looking after directing Bercoâ&#x20AC;&#x2122;s future within the automotive aftermarket. Modern Sales looks forward to contributing to their continued success for many years to come. Once again, congratulations Chester and Nick, and we wish you all the best in the future.

Itâ&#x20AC;&#x2122;s All About Opportunity Linking over 330 vendors with a nationwide membership. Consistent growth with a winning diversification strategy. Financially responsible, recognized leader. Technology driven. Focused on equality, growth, fairness and integrity. MODERN SALES CO-OP | www.modernsales.ca | memberservices@modernsales.ca | Tel.705.733.1771 | Fax.705.733.0770

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