Disruptive forces sit at the doorstep of the mechanical repair sector of the automotive aftermarket, but these bring both opportunities and challenges ahead, according to a new industry report.
The Automotive Industries Association of Canada released the Mechanical Repair Sector Landscape – 2022 report last week. It examines what impacts these forces will have on the mechanical repair sector.
It summarizes its findings by noting that the industry should return to pre-pandemic activity, barring something unforeseen, making it important for those in the sector to plan ahead. Major changes are on the way as internal combustion engines make way for battery-electric ones.
“And this planning imperative is not for some future point — it requires the urgent attention of all aftermarket mechanical providers now,” it emphasized.
Another challenge is around talent. Proactive investment and a look to attract internationally is noted as a strategy.
For those willing to adapt, the report highlights opportunities. One is the growth of regional and national banner programs. As consumers demand a level of expertise to service their vehicles, consolidation similar to that of the collision industry could take place.
Similarly, customer service — in which the aftermarket outranks dealers — will be key to shops.
It also noted positive signs such as a rebound in kilometres driven, more vehicles in operation and a higher average age of vehicles.
The report includes a deeper examination of the impact of disruptors, electric vehicles, vehicle quality and more.
It is free to AIA members and $249 for non-members.
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