We reached out to 10 leaders on the distribution side of the aftermarket to share their thoughts on the uncertainty and opportunity awaiting the industry in 2025. There's much to be excited for but it comes for those ready to take on the challenges
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Jobber News is Canada’s longest-established publication serving the distribution segment of the Canadian automotive aftermarket. It is specifically directed to warehouse distributors, wholesalers, machine shops, and national accounts.
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THE THEME OF 2025: UNCERTAINTY
The automotive aftermarket industry navigates a complex landscape in 2025, grappling with economic headwinds and political uncertainty. The past year has been a testament to the resilience and adaptability of this sector, which has weathered significant challenges and emerged with valuable insights for the future.
However, that future could change rapidly. Canadians are seeing reduced inflation. Interest rates are following suit. While this is good news, much damage has been done. Furthermore, as Canada’s political future remains in question and the latest war of words between our leaders and those south of the border, there’s plenty of uncertainty to go around.
Perhaps this is why Canadians are choosing to save, not spend. During the fall’s Talk Auto Event, it was pointed out that Canadians are spending more on semi-durable goods. Think small kitchen appliances, clothing and the like. The point being that Canadians are shying away from making big purchases like they used to and instead opting to save their money.
Despite this trend, industry leaders are optimistic that consumer confidence will rise, leading to increased vehicle repairs. Those who have put off getting their shocks replaced, for example, may finally get around to that knowing there is more breathing room on the financial front.
Of course, the impact of tariffs and political unpredictability cannot be overlooked. The automotive industry has shown remarkable resilience in the face of inflation and economic strain, but the potential for new tariffs and retaliatory measures poses a significant risk.
Canadians will head to the polls this year, we just don’t know when. Political instability leaves business in a holding pattern — will a new government have an impact on the way business is done? Will new tax burdens be implemented or will current ones be eased? What incentives — or disincentives — will be put in place? And when could any of this happen? This uncertainty pauses business progress.
And the economic outlook remains heavily influenced by political factors from the United States, with significant uncertainties on the horizon. The potential for tariffs from the south adds more to the layers of complexity of strategic planning.
At the time of writing, the tariff threat hadn’t come to fruition but was still on the table. The unknown of when, and perhaps even if, Canada will face these tariffs only adds to the uncertainty the automotive aftermarket is facing. When, or if, they ultimately come through, higher costs can be expected.
That’s not to say the industry isn’t ready for a dynamic year in 2025. One way to approach uncertainty is through collaboration. And this industry has proven repeatedly that it can work together to navigate the current economic climate and position itself for growth.
This issue features valuable insights from industry leaders, offering strategies for navigating the current economic climate, leveraging technology and embracing innovation to drive future success. As we move forward, the ability to adapt to changing market conditions and embrace new opportunities will be key to thriving in an everevolving industry.
President & Managing Partner | Delon Rashid
Head of Sales & Managing Partner | Peter Bulmer
Adam Malik Managing Editor, Jobber News
me know what you think. You can reach me at adam@turnkey.media
We want to hear from you about anything you read in Jobber News magazine. Send your email to adam@turnkey.media
THE BENEFITS OF ASSOCIATION MEMBERSHIP
I am writing this because I am starting to see business owners shying away from being a member of a professional association. Personally, I belong to several associations because of the networking and education I receive. Yes, I must actively seek participation but the rewards are many. I have been a long-time member of AARO (Automotive Aftermarket Retailers of Ontario) and have made many very valuable friendships with knowledgeable members. It is these interactions with my network that have helped me through several challenges. In these "new" times with so much information available on the internet, there is no replacement for experience that other business owners have and are willing to share. I strongly feel that without personal networking we will become lost. We need human interaction for assistance. Relationships are still a very important part of our lives. Rely on other business owners’ strengths for help. The only way to do this is to belong to associations with like-minded members. Like anything else in today's world, you need to work your network to get results. Simply being a member of an association to get perks is not enough. By expanding your support library and utilizing it will bring rewards.
Bob Ward, The Auto Guys
WHY YOU NEED AC IN YOUR SHOP NOW
I had installed air conditioning in the shop about 15 years ago. It is discouraging that the industry is just realizing that we should treat our technicians the best we can. The install cost was likely recouped in 1 week of good productivity. Sadly, customers often reacted like we must have money to burn because the ‘whole’ shop was comfortable. As if us grease monkeys didn’t deserve it. I often had a vehicle outside with the hood open to appear open.
Ron Finney, Finney’s Auto Service
We installed AC 2 years ago in Central Virginia. It was 105 degrees f in the parking lot. AC full tilt was 85-88 in the shop but no humidity. Even though it would be hot for a home it was pleasant for working. We also have three oil burners for heat in the winter. Worth every Penny. Many shops have neither heat nor AC for their employees.
Stephen Konyndyk, Endurance Auto Repair
4 STEPS IN THE AI JOURNEY FOR THE AFTERMARKET
I don’t understand why people are embracing a technology that takes away any thought processes we may have. This will only make people be less analytical and not be able to learn.
Bob Ward, The Auto Guys
U.S. AFTERMARKET SEES FLAT DEMAND
Wow, I knew this was coming years ago. If you look at the economic indicators from product sales through product jobbers and distributors, the numbers will not coincide with the reduced growth from our traditional automotive aftermarket results. This is due to an increase in imported brands. Don’t get me wrong. I am not against market competition. What I see as a source of this downturn is the complacency of our home-grown manufacturers in not nurturing their commercial customer markets, driving them to find alternatives. This is not new. The problem has been building upon itself for years and we’ve lost too many as a result. How many more manufacturers will have to sell out or die before the reality sinks in?
Bob Paff, Automotive Service Business Network
GETTING THE PHONE SHOPPER INTO YOUR SHOP
I agree with most of this article, except for the part where you specify the situation where they’re at another shop and are calling around for prices. 99 times out of 100, that is definitely not the customer we want. We don’t sell on price. I already know I won’t be the cheapest, so why bother?
Geoff Walton, Grant Street Garage
TRADES STIGMA STRONG AMONG YOUNG WORKERS
I believe this stigma exists mainly with the people supposedly guiding this generation, not the kids themselves. From what I can see with my own kids and their friends, there seems to be a reckoning coming against the educrats telling all of our kids they need a university diploma to be successful. Fortunately for the kids who pursue these industries in the future, the competition level will be low and the profits will be high. It’s not going to be hard to eat every other kids’ lunch who have learned nothing in the way of real world skills.
Geoff Walton, Grant Street Garage
There is no question there is stigma of the trades, with the automotive industry representing the worst of all trades. We lure young individuals into our trade by representing a cool persona of performance, racing, restoration and new technology only for them to find out later that it is not as glamorous as they were made to believe. We do not need to find solutions of attracting the next victim to this industry. What we need to do, is show the people that have taken the leap of faith that this can be a very lucrative career choice, for the right type of person. To survive in this industry you have to be able to deal with disappointment, failure, anxiety and problem-solve the unknown. You need to have an insatiable desire to prove yourself to everyone.
Rob Nurse, Bob Nurse Motors
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AIA CANADA STUDY EXAMINES INDUSTRY’S ECONOMIC CHALLENGES, OPPORTUNITIES
THE CANADIAN AUTO CARE sector remains resilient despite economic challenges, according to the latest insights from AIA Canada.
The Outlook Study, Edition 2024-2025 noted that growth in the automotive aftermarket will be driven by consumer demand for cost-effective services, the expansion of EV infrastructure and regulatory support for independent repair businesses.
The report analyzed the state of the Canadian auto care sector and provided insights into economic trends, employment and consumer behaviour.
Under the theme of Resilience in the face of economic uncertainty, it urged industry players to embrace technological advancements and workforce development to thrive in the evolving automotive landscape.
Under economic overview, AIA Canada reported that the Canadian auto care sector has rebounded strongly since the COVID-19 downturn. In those years and coming out of it, core auto care businesses have expanded, driving the industry to a record high economic output of $43.9 billion
The outlook also looked at how much Canadians drove, noting significant fluctuations over the last several years. After peaking in the third quarter of 2022, vehicle kilometres travelled have steadily declined. The study noted that pandemic restrictions, fuel costs and remote work trends have influenced this.
The full report, which includes full market trends and forecasts, is available for free to download only for AIA Canada members.
POPULATION GROWS BUT NEW VEHICLE SALES DON’T KEEP UP
THE CANADIAN LIGHT vehicle market saw a significant rebound in 2024, with overall sales reaching an estimated 1.86 million units.
That’s an 8.2 per cent increase from the 1.72 million units sold in 2023, according to DesRosiers Automotive Consultants.
However, Andrew King, managing partner at DesRosiers, called for caution despite the optimistic numbers.
“While we would never take a gain of 8.2 per cent for granted, the market remains approximately 180,000 units below its 2017 high, despite a Canadian population that has increased from 36.7 [million] to 41.5 million people over that time.”
The year began with exceptionally strong sales in January and February, which DesRosiers credited to pent-up demand as consumers were finally able to purchase vehicles they had been waiting for. While the middle months of the year caused concern, the fourth quarter also saw robust sales. Quebec was highlighted as a leading province as consumers rushed to buy zero-emission vehicles (ZEVs) before provincial incentives were reduced.
Several key market dynamics stood out over the past year for the consultancy. The growth of SUVs led to a new record for light truck share, with passenger cars falling to only 13.4 per cent of total sales. Compact and subcompact SUVs dominated the market. The luxury segment underperformed in 2024 due to affordability issues.
HOW MILLENNIALS APPROACH VEHICLE REPAIR
WITH MILLENNIALS HITTING their mid-40s at the top end, the Automotive Industries Association of Canada looked at how this age group views vehicle maintenance and repair.
Its latest Consumer Behaviour Series report, Understanding Millennial Canadian vehicle owners, shed light on the behaviours, attitudes and preferences of millennial vehicle owners, those aged 25-44. It explored evolving trends in vehicle maintenance, repair habits and the integration of emerging technologies such as electric vehicles and telematics.
Millennials displayed a divided approach to vehicle care, with some feeling confident about maintenance while others express
helplessness at the service counter — 36 per cent of them said they “feel helpless bringing their vehicle in for maintenance and repair” while 57 per cent said that they are very or somewhat knowledgeable when it comes to vehicle maintenance and repair.
Most Millennials will go to either the dealer or an ASP, when choosing between one or the other, the dealer came out ahead. And when asked who performs the work better, 37 per cent said dealers; 32 per cent said they’re both equal and 31 per cent choose independents.
The report further explored the growing trend of online shopping and where they prefer to shop — many conduct research online before visiting physical stores. It looked at EV ownership among Millennials and where they prefer to have their vehicles serviced.
AFTERMARKET
EMPLOYMENT SEES STRONG RESULTS
WHILE THERE WAS A modest increase in employment in the automotive sector as a whole, performance varies across different sectors. But it was good news for those in the aftermarket, according to DesRosiers Automotive Consultants, including setting new records.
Employment in the motor vehicle manufacturing industry decreased by 1.8 per cent compared to October 2023, bringing the total to 35,900. Similarly, the parts and accessories manufacturing sector saw a decline of 5.5 per cent, reducing employment to 69,300.
In contrast, the aftermarket sector showed positive growth across the board. Employment in automotive parts and accessories stores rose by 2 per cent to reach 45,000, a new record for the industry. The automotive repair and maintenance industry also hit recordbreaking levels, with employment surpassing 123,000.
Automobile dealers, the largest segment of automotive employment, saw a 2.4 per cent increase over October 2023, reaching 159,100. Despite this growth, the numbers remain below pre-pandemic levels.
“The performance of the aftermarket sectors in generating employment was remarkable in 2024,” said Andrew King, DesRosiers managing partner. “Parts and accessories stores, and repair facilities both hit all-time records, generating jobs for Canadians from coast to coast to coast.”
RIGHT TO REPAIR MOVEMENT GETS BOOST
TWO FEDERAL BILLS key to the automotive right to repair movement are set to become law in Canada, but the Automotive Industries Association of Canada continued its call for standalone automotive legislation.
“AIA Canada is celebrating the passage of Bills C-244 and C-294, which are poised to become law imminently after being adopted by Parliament yesterday,” the group said in an announcement.
The two bills are not specific to automotive right to repair but do make amendments to the Copyright Act. Bill C-244 would allow end-users and third-party repairers to maintain, repair and diagnose products by bypassing digital protection measures but avoid breaking copyright laws. This, according to law firm Torys, would “bolster sustainable consumerism and facilitate accessibility in seeking aftermarket repair.”
This bill was introduced in October 2023. It was initially introduced as Bill C-272 in 2021 but was scrapped that same year due to a fall federal election despite passing first and second reading.
Bill C-294 focuses on allowing different technologies to work together without breaking copyright laws.
“Both bills amend the Copyright Act and represent a historic step forward in the right to repair movement,” AIA Canada’s statement said.
“These two bills are a step in the right direction and are viewed as a necessary precursor to any right to repair legislation, however standalone legislation will still be needed to help reinforce a manufacturer’s requirement to allow access to diagnostic and repair information, which would address systemic issues around data ownership and ensure consumer choice,” AIA Canada further noted.
INFLATION DRIVES UP AUTO MAINTENANCE COSTS IN CANADA
CANADIAN VEHICLE OWNERS are facing rising costs for maintenance and repairs as inflation continues to impact the automotive aftermarket.
The J.D. Power 2024 Canada Customer Service Index—LongTerm (CSI-LT) Study found that the average cost of a dealership visit has climbed to $465, up from $432 a year ago, a 7.6 per cent jump. Similarly, visits to independent shops have increased, but at a lower rate to $273 from $262, up 4.2 per cent.
The study observed that macro-economic conditions and higher interest rates are not only driving up costs but also prompting owners to keep their aging vehicles longer. According to the study, 40 per cent of visits to dealerships and 24 per cent of visits to aftermarket shops were for repairs, compared to 31 per cent and 21 per cent, respectively, in 2021.
This trend, J.D. Power noted, indicates that more owners are choosing to invest in repairs rather than purchasing new vehicles.
Dealerships continue to dominate the auto service and repair market, holding nearly half (48 per cent) of the market share. Independent shops and quick lube locations capture 27 per cent and 11 per cent, respectively. These market shares have remained almost unchanged from 2023, the report noted.
Average annual visits also remain steady, with 1.6 visits per year in the dealership segment and 1.3 in the aftermarket segment, up from 1.2 in 2023.
WINTER TIRE
USAGE DEEMED IMPORTANT
BY CANADIANS
NEARLY THREE-QUARTERS of Canadian drivers (73 per cent) believe that extreme winter weather, fuelled by Canada’s changing climate, has made winter tires more critical than ever
According to a recent survey by the Tire and Rubber Association of Canada (TRAC), winter tire adoption has climbed to 78 per cent nationwide, up 10 points since 2016. Outside of Quebec, where winter tires are mandatory, usage has reached 73 per cent.
While adoption continues to grow, financial pressures are prompting hesitation among some drivers. Nearly one-third (30 per cent) of respondents say they are less likely to invest in winter tires due to rising living costs. However, a strong majority — 83 per cent — view winter tires as a vital safety investment despite economic challenges.
“We all see the impact of climate change and the increasing frequency of severe winter weather,” says Carol Hochu, president and CEO of TRAC. “The good news is more drivers are equipping their vehicles with winter tires and are better prepared for winter
motoring. Despite financial concerns, 79 per cent believe winter tires have saved them from a potentially hazardous driving situation.”
CONSUMERS HAVE SIGNIFICANT MAINTENANCE
KNOWLEDGE GAP
MANY DRIVERS ARE on the road with little knowledge about essential car maintenance, according to a recent survey.
Uswitch, a comparison website for personal services like car insurance, released a survey that highlighted a trend of neglect that could lead to costly repairs and safety hazards.
A majority (67 per cent) of drivers said they’re unaware of how to check their car’s battery health, with about one in five (22 per cent) checking their battery before a long drive.
The survey also revealed that almost two in five (37 per cent) drivers don’t know how to check if their exterior lights are functioning and 61 per cent fail to do so before a long trip.
More than a third (37 per cent) of drivers admitted they are clueless about checking tire tread depth, a critical factor for road grip and safety.
A quarter (25 per cent) of drivers also confessed they don’t know how to check their car’s oil level.
INDUSTRY FACES SOFTENING MARKET
CANADA’S AUTOMOTIVE AFTERMARKET is seeing a slight decline in 2024 with one group warning of long-term challenges ahead, especially as fewer new vehicles require gasoline as their sole source of power.
A forecast from DesRosiers Automotive Consultants highlighted a potential future shift in demand for aftermarket services as fewer vehicles enter the critical years for parts replacement and maintenance, underscoring the need for the industry to adapt as Canada’s vehicle landscape changes.
DesRosiers’ data show that gasoline consumption was on the upswing as the country recovered from the COVID-19 pandemic. But numbers dropped in the first half of 2024.
“Indicators point towards some minor softness in the automotive aftermarket in Canada this year,” said Andrew King, managing partner at DesRosiers, “though Canadians are continuing to rely heavily on their vehicles and continuing to invest in their upkeep and operation.”
The consultancy attributed the dip in gasoline consumption partly to the changing structure of Canada’s light vehicle fleet, specifically the rising adoption of zero-emission vehicles (ZEVs). Currently, ZEVs make up 2.6 per cent of the total light vehicle fleet
in Canada, while the second quarter of 2024 recorded a significant rise in ZEVs’ share of new registrations, reaching 12.9 per cent.
This shift toward ZEVs is reshaping fuel demand, suggesting that the recent decline in gasoline use could be an early indicator of broader changes to come.
Looking ahead, King cautioned that lower vehicle sales from 2019 to 2023 could bring challenges for certain aftermarket sectors later in the decade.
“The small volumes of vehicles sold in 2019-23 will start to work their way into their prime aftermarket years in the coming years,” he noted.
MAX POWER BOUGHT BY MOMENTUM USA
MOMENTUM USA, INC., through its subsidiary New World Friction, has acquired Max Power Friction, a Toronto-based brake pad manufacturer.
Max Power Friction specializes in medium-duty and heavyduty brake pads, including air disc brakes. This acquisition brings together the combined capabilities of New World Friction and Max Power, offering customers a comprehensive brake program ranging
from Class 1 to Class 8 vehicles, according to a news release.
John Paul Amalfe, CEO and President of Momentum USA, Inc., said in the announcement that Max Power Friction will continue to operate under its existing name, with joint operational and research and development efforts aligned with New World Friction.
AISIN TO TRANSFORM ITS BUSINESS
AISIN CORPORATION ANNOUNCED plans to reshape its global aftermarket strategy by transitioning into a total parts and service provider.
The company said at AAPEX that it’s creating Aisin Aftermarket & Service of America, Inc., a new company formed by merging AWTEC, a transmission remanufacturing arm, with Aisin World Corp. of America’s (AWA) aftermarket business unit.
The new company, set to be operational by April 2025, aims to streamline operations and expand product offerings to meet diverse customer needs.
“This evolution in the way we do business in the global aftermarket will transform the experience for our customers,” said Scott Turpin, President and CEO of AWA. “There are many
ANY AND EVERY PART, THAT’S NAPA KNOW-HOW.
exciting developments underway at Aisin.”
Aisin plans to extend its portfolio beyond in-house brands, sourcing a wide range of maintenance products such as wiper blades, high-quality lubricants and batteries. The enhanced inventory will complement existing offerings like cooling systems, drivetrain components and chemicals.
MAHLE STREAMLINES IT OPERATIONS
AUTOMOTIVE SUPPLIER MAHLE announced a new company strategy which it says will boost its efficiency and agility.
The company is calling its plan Mahle 2030+. It includes merging five business units into three to focus on electrification and thermal management, fully acquiring Mahle Behr GmbH & Co. KG and downsizing its management board.
“Mahle is doing its homework for the transformation,” said CEO Arnd Franz. “Through these far-reaching changes, we will make our business ready for the future. We are accelerating the implementation of our group strategy which will position us as an innovative and sustainably profitable shaper of future mobility.”
Its aftermarket business unit will continue as a separate business unit under the name of “Lifecycle and Mobility.” Mahle noted this group as having an “established product range and additional competence in electrification and digitalization.”
The company is also cutting its board by almost half as of the new year, going from seven to four members.
NO CLEAR PATH FOR PASSENGER HYDROGEN CARS
THERE ARE TOO MANY challenges in the way for fuel cell electric vehicles to become a viable option for consumers, according to aftermarket experts.
The topic of hydrogen-powered vehicles for mass market use came up during a pair of discussions at the Worldpac Supplier and Training Expo. While generally acknowledging that FCEVs are superior to battery electric vehicles, hydrogen has many more obstacles for reaching the mass market than BEVs.
NAMES IN THE NEWS
JC Washbish has now also been named the third chief executive officer of the history of the Aftermarket Auto Parts Alliance. He is also its president, a role he took on last year.
Transit Inc. announced Chakim Belrhali has been appointed marketing director with the company. He has more than 18 years of marketing experience.
Ashok Vedanayagam has been named as head of marketing for passenger and truck tires for the Americas at Continental Tire, covering North and South America.
Tayfun Uner has been named to the newly created role of president of light duty at Dorman Products, overseeing all commercial and operational aspects.
MEMA, The Vehicle Suppliers Association announced Jon Gentile as its new vice president of legislative affairs. He has 10 years of government relations experience.
Tom Stallings is the new U.S. regional sales manager for NRS Brakes. He will play a key role in expanding the company’s presence across the eastern U.S.
The Alliance announced Kris Goldman was promoted to the role of vice president and general manager of Alliance Parts Warehouse as of Jan. 1.
Marco Esser, who was previously deputy marketing director, is now Liqui Moly’s marketing director. He takes over from the retiring Peter Baumann.
“It’s practical,” said Isaac Rodell, manager for Worldpac Training Institute’s alternative fuels training program, of FCEVs. “Your energy efficiency is there and you’re no longer restricted by just the battery range. You can refuel the vehicle [and] continue on your trip without having to wait for long charge times.”
But the problem is infrastructure, he noted during a meeting with media members at the event. A main selling point of BEVs is that vehicle owners can charge at home and not always rely on charging stations. With hydrogen you have to rely on a station for refuelling — and that infrastructure isn’t readily available now and there are not enough FCEVs out there to justify building many.
Instead, hydrogen looks to be a better option for fleet applications and heavy-duty than consumer vehicles, said Luke Murray, an instructor and curriculum developer with the Worldpac Training Institute (WTI).
“That’s always been my vision of hydrogen fuel cell technology: Container ships, cruise ships, trains. That’s where it makes sense,” he said. “They’re going to be in port for a long time — fill it up. Why put diesel in there? Your ports — your trains and your ships are all coming in the same place — that’s where you get your hydrogen. They’re all next to the water, which is where most of our hydrogen is stored.”
By The Numbers
Stats that put the North American automotive aftermarket into perspective
1.72 million
60%
The majority of Generation Z showed an interest in owning a classic car. That’s almost double the number of Baby Boomers (31%).
Canada saw an 8% increase in vehicle sales in 2024 compared to the previous year. GM led the market in sales with more than 294,000 units sold.
DesRosiers Automotive Consultants
86.6%
Light trucks are dominating new vehicle sales in Canada, leaving just 13.4 per cent of the market to passenger cars.
DesRosiers Automotive Consultants
1.3
There was a slight uptick in visits to aftermarket shops in the last year, from 1.2. Dealership visits remained steady at 1.6 visits per year.
1
Only one partial automation system received an “acceptable” rating, two were deemed “marginal,” and the majority, 11 systems, were classified as “poor.”
Insurance Institute for Highway Safety
49%
Most Canadian drivers find it easy to understand dashboard warning lights, while 21 per cent admitted they found them confusing
The number of current vehicle owners now driving some form of electric or hybrid car, including traditional hybrids, fully electric vehicles and plug-in hybrids.
14%
Hagerty
Diono
ON THE ROAD
AAPEX & SEMA Show
November 5-8
Las Vegas, Nevada
It was an action-packed week in Las Vegas for Automotive Aftermarket Industry week, highlighted by AAPEX and SEMA. AAPEX at the Sands Expo featured an opening keynote and informative general sessions with industry leaders while experiencing setups from various of vendors. SEMA at the Las Vegas Convention Center saw packed halls all week, capped off with SEMA Fest, a festival open to the public featuring musical performances.
COLLISION REPAIR AT A CROSSROADS
The dynamics of revenue, profit and relevance are undergoing rapid disruption
Of late, I am hearing a lot of noise around the collision industry. Many of my clients experienced revenue drops last year and are struggling to find their way to increase their takings.
The harsh reality is reflected in overall sector numbers as well. Industry revenue was down or flat last year across competitors — both OEMs and aftermarket — across both the U.S. and Canada. Many independent shops went out of business. Others were acquired by national or regional chains or mid-sized operators.
Now, 2024 was an unusual year with one of the mildest winters recorded in recent history. Insurance claims, arguably the largest driver of revenue, were down which directly impacted collision topline. Industry insiders expect the trend to be transitory. A return to normal weather patterns will likely stabilize revenue. Similarly, a sudden drop in used car prices from post-COVID highs resulted in many vehicles not being repaired.
Seasonal and periodic factors may be temporary, but there are other headwinds. For instance, as vehicles become more complex, the cost of repairing crash parts with all the added sensors and technology might lead to higher total loss ratios as these cars depreciate. If a vehicle gets too expensive to repair, insurance companies are more likely to write it off, depriving the market of revenue. Similarly, advanced driver assistance systems (ADAS) may reduce overall collisions – another hit to dollars generated.
For market players, the next five years present both challenges and opportunities that demand proactive adaptation and strategic
The rise of ADAS
As I alluded earlier, ADAS technologies — such as lane-keeping assist, automatic emergency braking and adaptive cruise control — are now standard in many vehicles, driving up repair complexity. A simple bumper replacement often entails recalibrating sensors and cameras, adding significant labour time and requiring OEMspecific tools.
Shops like Caliber Collision have already invested heavily in ADAS calibration centers equipped with state-of-the-art diagnostic tools. The integration of OEM-certified ADAS repair programs will differentiate shops poised to handle these intricate systems.
Electrification of the vehicle fleet
The rapid adoption of electric vehicles is also shifting the repair landscape. High-voltage battery systems require specialized handling protocols and equipment to ensure technician safety. Tesla, for example, has created its own network of certified repair facilities, requiring shops to undergo rigorous training and purchase proprietary tools.
Shops like Gerber Collision & Glass are also building EV repair capabilities by obtaining certifications from manufacturers such as Nissan and GM. Additionally, partnerships between OEMs and insurers, such as the collaboration between Rivian and State Farm,
foresight. Here’s what lies ahead and how the industry is preparing for the changes.
// By Kumar Saha
Digital transformation of the industry
In future, shops will have to rely increasingly on digital technology. Estimating platforms, AI-driven damage assessments and remote diagnostics will become indispensable. CCC Intelligent Solutions, a leader in estimating software, is already collaborating with insurers to provide AI-powered tools that enhance the accuracy of damage assessments.
Repair facilities leveraging these tools are improving efficiency, reducing cycle times and enhancing customer trust. For example, Caliber Collision’s mobile app allows customers to schedule appointments, receive updates, and access estimates seamlessly, creating a superior customer experience.
Talent shortages and workforce development
The skilled labour shortage is a pressing issue. The retirement of experienced technicians is outpacing the entry of new talent. Multishop operators such as Caliber Collision are implementing in-house training academies, such as their Technician Apprentice Program, to attract and train new talent.
Competitive wages, clear career pathways, and a focus on workplace culture will be key differentiators in this challenging labour market.
Rising repair costs and insurance challenges
The complexity of modern vehicles is driving repair costs higher, placing strain on both insurers and customers. Progressive Insurance has introduced programs that partner with certified
shops to streamline repair approvals and ensure quality work. Shops must navigate the delicate balance between insurer expectations and maintaining repair quality.
Transparency is paramount — from detailed repair estimates to clear explanations of OEM-mandated procedures. Shops that can demonstrate value through quality and efficiency will strengthen relationships with insurers and customers alike.
Consolidation and industry partnerships
All of the above trends will drive further consolidation. MSOs like Driven Brands and Crash Champions will expand their footprint, benefiting from economies of scale, centralized training and consistent branding.
Independent shops face mounting pressure but can thrive by carving out niches in high-demand areas such as ADAS calibration, EV repairs or advanced material work. Independent operators will have to rely on the buying group format, enabling them to compete with larger chains through shared resources and branding. For instance, the Certified Collision Group (CCG) recently moved into Canada. Companies such as CCG and Fix Auto will allow repair shops the benefits of scale that will be critical for future success.
Kumar Saha
JOBBER AND SUPPLIER EXECUTIVE OUTLOOK 2025
In a year with plenty of uncertainty ahead there are still ways for the distribution segment of the aftermarket to build business and be successful // By Adam Malik
The automotive aftermarket industry is poised for a transformative year in 2025, shaped by a confluence of economic, technological and political factors.
As we navigate through an era marked by high inflation, fluctuating interest rates and supply chain disruptions, industry leaders from various sectors have shared their insights and strategies to thrive in this dynamic landscape. The 2025 Jobber News Executive Outlook brings together the perspectives of key figures in the automotive aftermarket, offering a comprehensive view of the challenges and opportunities that lie ahead.
At the top of everyone’s list is the economy. And how could it not be — inflation and increased prices everywhere was top of mind of most Canadians. So much so that they’ve reined in spending and are focused on saving instead.
Jessica Hinds, director of the Sovereign Group (Economics) at Fitch Ratings told attendees of last fall’s Talk Auto event near Toronto that Canadians are saving their money far more than they’re used to — almost five percentage points higher than pre-pandemic times.
“These savings have largely accrued to wealthier households, and on the whole, these wealthier households are much less likely to spend their additional savings,” she said.
In other words, Canadians who have money saved up are not spending it. Indeed, as pointed out in this feature, Canadians are choosing to fix their immediate needs now and live with the spongey suspension for a little while longer.
However, there is optimism that as interest rates fall, consumer confidence will rise, leading to increased vehicle repairs. At the same time, consumers seem to be choosing parts on either end of the quality spectrum, indicating a need for distributors to review their inventory.
The shifts towards EVs and digital technologies are also identified as critical areas for investment by the aftermarket. Embracing data-driven inventory management and leveraging digital platforms are key strategies for navigating these changes, leaders say.
The impact of tariffs and the need for adaptability in the face of political unpredictability will impact the industry. And it’s not yet clear when or how these impacts will be felt, forcing the aftermarket to be prepared to be nimble. Strengthening core business operations, improving efficiency and leveraging technology to enhance customer service are recommended strategies.
The importance of continuous improvement and efficient value delivery is stressed among leaders. A strong foundation in inventory, logistics and marketing is deemed crucial for success in 2025. At the same time, focusing on the fundamentals and seizing both immediate and long-term opportunities is encouraged.
As we move into 2025, the insights from these industry leaders provide a roadmap for navigating the complexities of the automotive aftermarket. By focusing on collaboration, innovation, and adaptability, businesses can position themselves for success in an everevolving industry.
As you flip through the following pages, you’ll see the specific insights from each leader. We gathered 10 of them to share their thoughts and answer three questions: How has the economy impacted business in the last year and how will it impact 2025? What strategies should jobbers, distributors and/or suppliers be thinking about this year? How will jobbers, distributors and/or suppliers be successful in 2025?
In alphabetical order, here’s what they told us…
"Each
jobber, distributor and supplier needs to ensure they are able to keep up with new part number additions to stay on top of late model applications."
BUSINESS FOR THE MOST part has held its own this year. Although, I believe the impact of high interest rates has caught up to consumers in the second half of 2024 with the last few months becoming slightly softer than the robust scenario most of the year. The mild temperatures late into the fall did not help either, but we’re starting to see business pick up again as the cold weather has started to set in. As interest rates fall it will hopefully build consumer confidence to repair their vehicles. The average age of cars continues to grow in age which means more repairs. Providing options for good, better and best quality will provide options to each customer's preference.
Each jobber, distributor and supplier needs to ensure they are able to keep up with new part number additions to stay on top of late model applications. Ensure that you know your customer, their needs, quality preferences and proper inventory — you can’t have everything, but your customer needs to have confidence that you’ll go the extra mile to source the product for them.
You can’t sell from empty shelves. The jobbers/distributors that will be successful will have good inventory with multiple price options and add new parts while continuing to build the customer relationships.
THE PAST YEAR’S ECONOMIC landscape has been marked by persistent currency inflation and supply chain volatility, creating pressure on margins and inventory management. Rising interest rates in the earlier parts of 2024 also constrained capital investment, making operational efficiency more critical than ever. However, consumer demand in the automotive aftermarket remained relatively resilient, driven by higher vehicle repair rates. Looking ahead to 2025, these economic pressures are likely to persist, compounded by an accelerating shift toward electric vehicles and digital technologies. Distributors must navigate these changes while preparing for potential labour shortages and consolidation.
Key strategies include embracing data-driven inventory management to reduce carrying costs and mitigate supply chain disruptions. Collaboration across the supply chain — from manufacturers to jobbers — will be essential to ensure alignment on demand forecasting and product availability. Additionally, investing in employee training and retention programs will be vital to counteract labour shortages. Suppliers should also prioritize partnerships with distributors that share a commitment to innovation and adaptability, especially as EV adoption grows. Leveraging digital platforms to streamline operations and improve customer engagement should be a top priority.
Success in 2025 will require a proactive approach to market trends. Jobbers, distributors and suppliers should focus on diversifying product portfolios, particularly with parts and tools that cater to EVs and ADAS. Building strong relationships within the supply chain will ensure agility in adapting to market demands. Moreover, adopting technology-driven solutions — such as e-commerce platforms and predictive analytics — can enhance operational efficiency and customer satisfaction. Finally, fostering a culture of continuous learning and innovation within teams will position businesses to thrive in an evolving industry.
Nick Brunet PRESIDENT | BESTBUY DISTRIBUTORS LIMITED
"Collaboration across the supply chain — from manufacturers to jobbers — will be essential to ensure alignment on demand forecasting and product availability."
Shannon Black 2024 JOBBER OF THE YEAR | MOTORCADE ST. CATHARINES
J.F. Champagne
PRESIDENT | AUTOMOTIVE INDUSTRIES ASSOCIATION OF CANADA
"Tariffs
are likely to play a role in 2025 and be ready to adapt to a changing landscape in terms of supply and its impact on the Canadian dollar."
CERTAINLY, WE HAVE SEEN the impact of inflation on the economy. While the peak from 2022 is behind us, its effect was certainly felt this year with higher costs for wholesalers and a reduction in spending from consumers, but the overall industry continues to perform well and show resilience. 2025 will be defined in large part by the policy decisions from President Trump and we have come to learn from his previous administration that unpredictability will likely become common place
Tariffs are likely to play a role in 2025 and be ready to adapt to a changing landscape in terms of supply and its impact on the Canadian dollar. This will disrupt the supply chain based on where goods are manufactured and what could be retaliatory tariffs from the Canadian government.
Successful players continue to adapt, and pivot based on market and political changes and seek opportunities to grow, expand and consolidate. The automotive service providers are also being disrupted so implementing programs and strategies to support them is a winning combination. Finally staying informed and connected with your Association is key to stay on top of the latest trends.
THE CURRENT ECONOMIC environment and higher interest rates have pressured new vehicle sales, which is a positive factor for our business due to an aging vehicle population and an increased focus on repairs. While there has been reduced discretionary spending as some consumers become more cautious, we do anticipate the overall performance of our industry should remain relatively healthy despite the pressure on the economy.
The political agendas both north and south of the border might have implications to our sector and we continue to monitor the advancement of EVs and car technology generally.
Times of economic pressure often allow businesses to look inwards to drive improvements. To emerge stronger from a pressured economy, jobbers, distributors and suppliers should focus on strengthening their core business. This might involve improving the efficiency of their operations and strategies to deliver exceptional customer service. Key strategies could include leveraging technology more effectively, enhancing their online presence and improving staff training and retention. Additionally, with shifting product demand, there may be opportunities to adjust buying strategies to optimize inventories and meet demand effectively.
No doubt 2025 will be an interesting year.
CFO | LORDCO AUTO PARTS
"To emerge stronger from a pressured economy, jobbers, distributors and suppliers should focus on strengthening their core business."
Winston Cummins
Roy Moussa VP, WESTERN CANADA & NATIONAL MAJOR ACCOUNTS
| NAPA AUTO PARTS
"Working towards more efficient ways to deliver value to customers throughout the chain should help guide strategic decision making."
LAST YEAR WAS an economically uncertain year for many Canadians. In our industry, vehicle owners held on a little tighter, taking care of the most critical repairs and deferring many others into the new year. These decisions have tempered activity and, in some cases, put a strain on businesses.
With interest rates dropping, there will be more disposable income for Canadians to address these other requirements and inject more activity into the market.
When it comes to strategies that jobbers, distributors and suppliers need to be thinking about this year, the mindset of continuous improvement will serve all facets of the aftermarket well. Working towards more efficient ways to deliver value to customers throughout the chain should help guide strategic decision making.
Jobbers, distributors and or suppliers all need to work hard on the fundamentals that will best serve the customer in order to find success in 2025. Whether it be inventory, logistics, marketing or any other business function; a strong foundation will lead to success. Grab the low hanging fruit while investing in larger opportunities.
THE AFTERMARKET HAS benefited from inflationary pressures, high interest rates and high costs of new and used vehicles which has resulted in consumers choosing to invest in their existing vehicle. Recent interest rate drops and vehicle supply improvements, combined with the possibility of vehicle price decreases may result in decreases in industry growth. However, there is still greater economic pressure on consumers than pre-pandemic. This, coupled with uncertainty surrounding potential tariffs, should lead to another good year in the industry.
Product sourcing should be considered due to the impacts on supply during COVID-19 and increased discussions regarding tariffs. It may be worthwhile for jobbers and distributors to consider their supply chain and look to suppliers who have begun nearshoring their operations or who import directly into Canada thus reducing supply risk. The aftermarket will also face reduced demand in coming years due to the reduction in new car sales during COVID and need to prepare for it.
To succeed in 2025, you will need to monitor industry trends and adapt appropriately. In the last 18 months significant changes have happened as some of the big players struggled with poor results, closures or sales, all of which increases industry uncertainty. Taking advantage of these changes or protecting oneself due to these changes will help companies succeed in 2025. It will also remain important to adapt to market demands and changes relating to product supply as tariffs and other economic factors may change how you go to market to be competitive.
Douglas Squires PRESIDENT, CEO | COLONIAL GROUP (COLONIAL AUTO PARTS AND APM LIMITED)
"Product sourcing should be considered due to the impacts on supply during COVID-19 and increased discussions regarding tariffs."
Sean Stokes VP OF AUTO PARTS, GM | PARTSOURCE
"We
are seeing a bifurcation in product selection where customers are shifting away from mid-tier product and selecting either premium parts or shifting to the opening price point products."
HIGHER COSTS OF LIVING along with higher interest rates over the last few years have pushed customers to fix their existing vehicles instead of looking at new ones. It has also impacted the amount of non-essential projects people are doing with their vehicles. We are seeing a bifurcation in product selection where customers are shifting away from mid-tier product and selecting either premium parts or shifting to the opening price point products. Lower interest rates will be a positive headwind for the aftermarket in 2025. The aftermarket in Canada will continue to experience similar growth to what was experienced in 2024 for the upcoming year.
We will see continued consolidation of competitors in the Canadian aftermarket in 2025. This will drive the continued importance of partnerships and aligning with the suppliers that are adding the most value to your end consumers. Generative AI technology strategies will continue to drive efficiencies and improve decision making for aftermarket companies. These technologies will continue to improve aftermarket in-stock and digital interfaces to create a more seamless ordering process for installers and DIY customers. More companies will need to get involved in efforts to reinforce right to repair. This will be a key driver of business over the next few years.
With lower interest rates expect to see larger aftermarket jobbers and distributors expand their warehouse options. Talent acquisition and training of counter staff and technicians continue to be a vital component of success as it seems the overall talent pool for the aftermarket is shrinking. Participating in the AIA Canada recruiting and training efforts will provide companies with a helpful support mechanism for employee engagement.
BIGGEST HOPE IN the next year is the passage of C-244 by the Canadian Senate as well as the passage H.R. 906 – the REPAIR Act in the U.S. A secured win for right to repair in North America will be paramount in shaping the future of the automotive aftermarket.
Should the right to repair movement face setbacks, then winds of uncertainty will continue to blow throughout the industry. Uncertainty breeds other issues. This is a united effort — everyone should do their part. We are asking all independent jobbers, shop owners, retailers and distributors to reach out to their elected representatives and inform them on right to repair. We need as many people as possible on this. We need to do it; we cannot afford to sit on our hands and hope the heavy lifting will be done by our trade associations or someone else.
In the near future, this could be a challenging year for the Canadian economy, as high interest rates and inflation hit Canadians hard in 2023. On the upside, the general consumer will be repairing the vehicles they already own versus buying new vehicles. Now is the time for suppliers and jobbers to partner with repair shops and encourage vehicle owners to invest in their vehicles and maintain them with recommended service. A strong partnership between parts suppliers and customer repair shops is what wins the day, particularly with customer service, honest communication and parts availability.
To sum it up: Will 2024 have its challenges? Sure. And with these challenges will come great opportunities.
J.C. Washbish PRESIDENT, CEO | AFTERMARKET AUTO PARTS ALLIANCE
"Embracing
technology like inventory management and diagnostic tools can help streamline operations and give you an edge."
Zara Wishloff PRESIDENT, CEO| AUTOMOTIVE PARTS DISTRIBUTORS
"The
economic outlook remains heavily influenced by political factors, with several uncertainties on the horizon."
THE YEAR 2024 WAS marked by high inflation and significant cash flow challenges for Canadian households. As the year came to a close, interest rates began to decline—a trend expected to continue into 2025. While lower rates make debt more affordable, the persistently high cost of goods continues to strain Canadians financially. Compounding this issue is the significant national debt and high cost of multiple taxes that see our tax rate on products, like natural gas, three times higher than the product we are consuming.
The economic outlook remains heavily influenced by political factors, with several uncertainties on the horizon. The United States poses high-risk threats to our economy through potential tariffs. There is also a probable change in government in Canada. These variables make strategic planning challenging but important to monitor.
In Alberta, oil production is expected to increase, but global prices remain low. Factors such as war and tariffs could lead to large price swings.
With stock, the normalization of inventories continues, following the disruptions caused by COVID-related spikes and shortages. The weaker Canadian dollar makes Canadian companies attractive acquisition targets for U.S.-based firms looking to expand.
For distributors, success will hinge on strategic product line decisions. Some major brands have seen a decline in quality. Consumers are also seeking more affordable alternatives. The optimal approach lies in embracing “premium economy” strategies— offering products that prioritize functionality and reliability at a price point more competitive than premium options. Adapting to these conditions will help us succeed in 2025.
TO RECAP 2024, overall, the economy and high interest rates had a slowing effect on our industry. While many ASPs didn’t see year-over-year declines in car counts, consumers have been reluctant to spend money on non-essential repairs — they’ll do brakes and change the oil, but can live with bouncy shocks for another couple of months. The big question facing our industry, and the economy, is the effect of tariffs indicated by the incoming U.S. president. Tied into this is the prorogued Canadian Parliament and probable election announcement soon after it resumes.
If and when these tariffs are imposed, and any retaliatory tariffs from the Canadian government, my assumption is that they would be based on the country of origin. Fortunately for jobbers and distributors, many of the parts we sell today are no longer manufactured in North America and should be exempt from these tariffs. Unfortunately, many aftermarket parts suppliers manufacture on both sides of the border and could see a drastic decline in cross-border sales as the suggested tariff could make their products non-competitive versus offshore brands. This will affect Tier 1 manufacturers on a much bigger scale, increasing the cost to consumers of new vehicles.
As an industry, the automotive aftermarket has faced challenges and adversities for as long as it has existed, yet we continue to grow. To stay successful, we just need to follow the three simple rules: Have the products your customers want, deliver to them in a reasonable time and sell them at a competitive price. We all know the K.I.S.S. principle — we just need to make sure we do it daily.
Jason Yurchak SENIOR VICE PRESIDENT | WORLDPAC CANADA
"As an industry, the automotive aftermarket has faced challenges and adversities for as long as it has existed, yet we continue to grow. "
ON THE ROAD
Student Aftermarket Day
November 20
The auto care sector was the focus of the day for students of the Automotive Business School of Canada program. It was the annual Student Aftermarket Day event at Georgian College in Barrie, Ontario, where the next generation of future automotive professionals got to learn more about the opportunities the auto care sector has to offer. A tradeshow and networking event was available for student to meet and learn about careers in the industry. The day is hosted by the Young Professionals in the Auto Care Sector, the under-45 professional networking arm of AIA Canada.
Barrie, Ontario
See the event reel on Instagram
How soon Gen Z will impact the aftermarket
The youngest buying group will soon be playing a bigger role in automotive service and repair — even as soon as next year // By Adam Malik
The do-it-for-me (DIFM) auto repair market is on the verge of significant transformation, with Gen Z poised to play a larger role beginning in 2026.
According to a new report by Lang Marketing, this shift will reshape buying habits in the auto repair industry, where 90 per cent of the current market is dominated by Baby Boomers, Gen Xers and Millennials (or Gen Y).
The report, Evolving Generations Change DIFM Buying Habits, looked at how the DIFM market shares of these generations have evolved over the past decade. In 2013, Baby Boomers accounted for approximately 33 per cent of the DIFM volume, but by 2023, their share had declined to 23 per cent. Gen Xers, on the other hand, increased their market share, climbing from 32 per cent in 2013 to 35 per cent in 2023.
Millennials saw the most substantial growth, expanding their share from 28 per cent in 2013 to 33 per cent in 2023. Consumers born before 1946, as well as Gen Z, made up less than 10 per cent combined of the DIFM volume in 2023.
Expected changes by 2030
Looking ahead to 2030, Lang Marketing projects notable shifts in the generational composition of the DIFM market. By that time, Baby Boomers’ DIFM share is expected to drop to below 12 per cent, while Gen Xers’ share will sit and stay at around 36 per cent.
Millennials are predicted to generate the largest portion of DIFM volume by 2030. Gen Z is expected to account for nearly 14 per cent of the market, a significant rise from their current impact.
Generational differences
Previously, Lang Marketing looked at how ‘digital natives’ are set to transform the auto care sector as that generation grew up with digital technologies, as opposed to ‘digital immigrants’ who adopted them.
By the end of the decade, there will be significant changes in the do-it-for-me share held by each of the three consumer generations.
“Digital natives and digital immigrants differ in three significant ways that affect their aftermarket behavior: Use of the internet as the primary source of aftermarket information, preference for online transactions as opposed to face-to-face purchases and the growth of platform buying,” it said in the report, Digital Natives Are Rewiring the Aftermarket’s Future
In the Evolving Generations report, the group also highlighted striking generational differences in how consumers engage with auto repair services. These differences span preferences for online purchasing, calling repair outlets and visiting repair shops in person.
Online outlet selection
Across all three generations currently dominant in the DIFM market, about one-third of consumers prefer buying auto repair services online. However, Millennials stand out, with nearly half opting for online purchases over calling or visiting repair outlets.
Gen Xers are less inclined, with just under one-third favoring this approach, while only one-fifth of Baby Boomers prefer to purchase auto repair online. These differences underscore the varied contributions of each generation to online-to-offline (O2O) growth in the DIFM sector.
Calling repair outlets
Calling repair outlets to arrange auto repairs remains a popular choice for more than 30 per cent of consumers, but there are generational distinctions.
More than 35 per cent of Gen Xers prefer this method, making it their top choice. It is the second most popular option for Baby Boomers (just under one-third), but only about one-quarter of Millennials opt
for calling as their primary method.
Visiting repair outlets
Visiting repair outlets in person to make auto repair arrangements is most preferred by Baby Boomers, with nearly half choosing this method. This option is much less popular with Gen Xers (around 30 per cent) and even less so with Millennials, only about one-fifth of whom prefer to visit repair shops.
Baby Boomers are more than twice as likely as Millennials to favor in-person visits, while Millennials are more than twice as likely to choose online purchasing.
Shifting Market Landscape
The findings of the Lang Marketing report illustrate how evolving generational preferences are reshaping the DIFM market.
“Within each of the three major generations, there are significant differences in auto repair purchasing based on gender, vehicle nameplate (domestic versus foreign) and vehicle age, among other factors,” Lang observed.
As Gen Z enters the scene and Millennials become the dominant force, the industry is likely to see a continued rise in online purchasing and a decline in traditional, in-person repair shop visits. Understanding these generational preferences will be key for auto repair businesses looking to adapt to the future of DIFM and attract the next wave of consumers.
“By the end of the decade, there will be significant changes in the do-it-for-me share held by each of the three consumer generations,” Lang said.
Navigating a turbulent year ahead
In the face of persistent challenges ahead, parts distributors can help ASPs maintain and grow their business
//
By Zakari Krieger
Reflecting on the macroeconomic environment in 2024 and the outlook for 2025, the mechanical automotive aftermarket in Canada faced significant challenges in 2024 and appears poised for continued turbulence as we head into 2025.
At the start of 2024, mechanical retail service locations were performing well. Inflationary pressures were weaning and consumer confidence remained relatively steady, as reflected in the Consumer Price Index (CPI).
However, by the second quarter, disinflationary trends began to emerge as the Bank of Canada maintained tight monetary policy to combat the lingering effects of high inflation. Historically, the automotive aftermarket demonstrates an inverse relationship with economic conditions: In prosperous times, new vehicle sales increase, reducing the average vehicle age and lease/finance turnovers, which
dampens aftermarket service revenue growth. However, this cycle has been atypical.
The sustained period of tight monetary policy and higher interest rates, compared to the past decade, presented a mixed landscape. While OEM sales showed signs of recovery, consumers grappled with the dual challenges of elevated vehicle prices stemming from inflation and increased borrowing costs. As consumer confidence waned, many found it difficult to bear the costs of non-discretionary vehicle maintenance.
Publicly traded companies in the aftermarket sector mirrored these struggles. For example, Monro, Inc., one of the largest aftermarket service chains in the U.S., reported a 6.4 per cent year-overyear revenue decline in its second quarter filings. Although the U.S. economic environment differs from Canada’s, it serves as a benchmark while highlighting unique Canadian complexities, including
24_014615_CARS_FEB_CN Mod: December 30, 2024 10:35 AM Print: 01/08/25 page 1 v2.5
currency fluctuations, a weakening dollar and taxation pressures.
The ripple effects of these economic challenges were felt across the Canadian aftermarket supply chain, from warehouse distributors to jobbers and automotive service providers (ASPs). Looking ahead to 2025, political uncertainty in Canada will likely continue to influence the sector. Key concerns include how the Canadian government navigates the economic landscape, the implications of U.S. trade tariffs and the ongoing weakness of the Canadian dollar.
While the U.S. Federal Reserve appears to be pausing its tightening monetary policy, Canadian consumers remain under strain. Economic indicators suggest Canada may ease monetary conditions, which could widen the bond yield disparity with the U.S., further weakening the Canadian dollar. For a sector reliant on imports from the U.S., this currency weakness will exacerbate cost pressures as auto parts move through the supply chain, ultimately affecting consumer purchasing power.
Despite these challenges, the automotive aftermarket remains a diverse and resilient industry. For jobbers, the path forward lies in fostering stronger partnerships with ASPs. As simple as it may sound, the focus must shift toward enabling service centers to navigate pricing pressures while enhancing performance. Key areas for collaboration include:
1. Performance coaching and training: Equip ASPs with the tools and knowledge to improve efficiency and profitability.
2. Customer experience enhancement: Help ASPs differentiate themselves by delivering superior service and creating loyalty among vehicle owners.
3. Exploring untapped segments: Guide ASPs in unlocking
profitable opportunities in areas like auto-glass and ADAS services.
From my experience — spanning jobber operations to overseeing multi-faceted auto service chains across the country — the narrative with ASPs must evolve. Jobbers must help ASPs drive customer experience, encourage investment, and embrace innovation. This includes adapting to the technological demands of modern vehicles and their owners.
The future will see a reduction in the number of service shops as the industry continues to consolidate and adapt to rising costs in training, personnel and overhead. Jobbers must move beyond traditional priorities like fast delivery and competitive pricing. Instead, they need to focus on value-added services that strengthen their relationships with ASPs, ensuring long-term success for both parties in an evolving market.
This may sound thin, but changing the narrative from revenue parts growth to building trust and owning the advisory relationship with your core ASPs is critical.
While the Canadian mechanical automotive aftermarket faces considerable headwinds, there are opportunities for growth and resilience. By embracing collaboration, innovation, and a forward-looking approach, stakeholders across the supply chain can navigate the challenges ahead and thrive in a rapidly changing environment.
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Zakari Krieger is the Fix Network, Canadian vice president of Prime CarCare, responsible for the Canadian retail business, encompassing the Speedy Auto Service and Novus Auto Glass business lines
BAYWATCH
BRAKES, MASTER CYLINDERS AND MORE
TAKE A LOOK AT THE NEWEST PRODUCTS
ZF Aftermarket has enhanced its offerings in the U.S. and Canada by introducing 80 new products under its TRW and SACHS brands, extending its market reach to over five million vehicles. The update includes 31 new TRW braking components, such as brake boosters and master cylinders for 2.7 million vehicles, covering popular brands like Audi, BMW, Mercedes-Benz, and Volkswagen. Additionally, ZF has released new TRW brake pad sets for vehicles like the Ford Bronco and Ranger, as well as Ram 2500 and 3500 trucks. The expansion also features SACHS coil springs and flywheels for various car models including BMW, GM, and Honda. www.zf.com
FORD F-350 4WD DRW AIR SPRING KITS
Air Lift Company introduces new air spring kits for the 2023-2024
Ford F-350 4WD DRW, including LoadLifter 5000-series, LoadLifter 7500 XL Ultimate, and Air Lift ProSeries kits. These kits enhance vehicle suspension, eliminate squat, and improve towing and hauling safety and comfort. Options range from the LoadLifter 5000 with 5,000 lbs. capacity to the LoadLifter 7500 XL Ultimate with 7,500 lbs. capacity. www.airliftcompany.com
DIAGNOSTIC TOOLS
Mahle Aftermarket launched TechPro 2 and Brain Bee Connex 2, featuring a redesigned interface for easier use and a compact VCI connector with DoIP for advanced diagnostics. These tools simplify diagnostics with intuitive navigation, video tutorials, and a Smart Scan function for detailed fault code analysis. They're compatible with the Mahle Cyber Security Pass, ensuring access to encrypted data, with customizable licenses and updates for current users. www.servicesolutions.mahle.com
MOTOR OIL FOR STELLANTIS VEHICLES
The new Top Tec 6310 0W-20 from Liqui Moly is a new motor oil that meets the requirements for Stellantis brand vehicles. Designed primarily for petrol, petrol/hybrid and diesel engines in specific 2018 and newer models, this oil is designed for engines needing the PSA B71 2010 specification. The oil reduces fuel consumption while offering comprehensive protection to the engine. The low-viscosity formula ensures peak performance and minimal wear in small engines, striking a balance between fuel efficiency and maintaining a strong lubricant film.
www.liqui-moly.com
DURANGO REAR BRAKE PADS
NRS Brakes introduced rear brake pads for 2021-2024 Dodge Durango models (including pursuit) to its lineup. This addition extends coverage to over 187,000 vehicles. These pads feature the NRS mechanical fusion technology, ensuring the friction material remains intact without delamination or separation. With durable galvanized steel, they resist corrosion, making them quiet and long-lasting.
www.nrsbrakes.com
THREAD RESTORATION
Mueller-Kueps has redesigned its Sensor Tap Series. The steel strength, double coating and six cutting edges make it easier to cut through the heattempered steel. It allows for professional thread restoration for both light and heavy-duty diesel engines. A super short tap design with an integrated guide pin which is available in sizes M12 x 1.25, M14 x 1.5, M18 x 1.5, M20 x 1.5, and M22 x 1.5. The series is compatible with the #514 513 Flexhead Ratchet. This series allows for NOX sensor thread restoration without compromising the exhaust system.
www.mueller-kueps.com
BELT DRIVE
Dayco has introduced three new synchronous belt drive products for the North American industrial market, emphasizing significant energy and cost savings. Launched in early April, these belts cater to a range of industrial applications with options categorized into good, better, and best. The HT Power Belts are ideal for general use with their durability and temperature stability from -4°F to 212°F. The HT Power Plus Belts suit high-load needs, while the HT Power Carbon Belts excel in extreme conditions, handling temperatures from -22°F to 266°F, perfect for tough environments.
www.dayco.com
SHOCKS
AI TECHNOLOGY
Atrium Solutions has launched Orbit, an artificial intelligence technology designed to enhance efficiency for commercial tire dealers. This innovation automates the delivery receipt process within tire manufacturers' portals, significantly reducing the need for manual data entry and addressing the common challenge of extensive paperwork. Orbit minimizes human involvement in routine tasks, thereby boosting operational speed, efficiency, and agility. This allows dealers to focus more on delivering exceptional service and maintaining streamlined operations.
www.atrium.app
TESLA BRAKE PAD
NRS Brakes announced the launch of Brake Pad X, which it says is the lightest brake pad in the world. Available to order now for Tesla vehicles and engineered by NRS Brakes, the new addition features a composite BIMETAL of aluminum and stainless-steel backplate, powered by the award-winning NUCAP Retention System (NRS).
www.nrsbrakes.com
ZF Aftermarket expanded its lineup, introducing 33 new part numbers for Sachs Continuous Damping Control (CDC) shock absorbers. This release boosts coverage to approximately 1.6 million passenger vehicles in the U.S. and Canada, a more than 70% increase in ZF's CDC offerings, due to growing demand for advanced damping technology. The parts are designed for a variety of vehicle models, including BMW and Audi. www.zf.com
CV JOINT REPAIR KITS
Dana’s new Spicer Select Constant Velocity (CV) joint repair kits are designed to optimize the repair of a vehicle's drive shaft by replacing the CV joint instead of the entire drive shaft. Replacing the CV joint rather than the complete driveshaft streamlines the driveshaft repair process, saving time and money. The repair kits include a high-quality constant velocity joint, hardware, and grease. The application-specific design ensures dependability and an exact fit. Coverage is available for popular vehicle models, including Jeep Grand Cherokee and Wrangler JK models.
www.DanaAftermarket.com
CAR-TOONS
"It's
a $50,000.00 car and the question most asked is how many coffeee cup hoders are there."
BAYWATCH
LED LIGHTBARS
Philips has expanded its Ultinon Drive 5000 series to include eight models of LED lightbars. Available in 10”, 20”, and 30” single and double row versions, and 40” and 50” double row configurations, these lightbars are designed for demanding off-road use. They feature scratch-resistant polycarbonate lenses, waterproof DT electrical connections, and corrosion-free stainless steel mounting brackets. Rated IP68/IP69K for water and dust resistance and IK07 for impact resistance, they offer illumination patterns from 426 to 833 yards. The lightbars are designed to avoid electrical interference with vehicle functions.
www.lumileds.com
JUMP STARTERS
Schumacher Electric Corporation has relaunched its DSR Pro Series jump starters, now available under the model numbers DSR165, DSR166, DSR167, DSR168, and DSR168/G. These high-performance jump starters, featuring internal chargers with peak amps ranging from 2200 to 4400, are designed for portability and efficiency. The units can be recharged using any extension cord, making them ideal for professional use with bay drop cords. Available at professional tool suppliers, these jump starters save time and money by enhancing operational efficiency in automotive shops.
