Auto Service World
News   February 14, 2023   by Adam Malik

Aftermarket shops show enthusiasm for this year

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Many members of the Automotive Aftermarket Retailers Association of Ontario are looking ahead to 2023 with optimism, despite facing rising costs of parts.

DesRosiers Automotive Consultants teamed up with AARO to survey its members on a number of topics from sales changes to outlook for the year ahead.

It found 54 per cent of aftermarket shops reported a positive increase in sales in 2022 compared to 2021 with 34 per cent overall reporting gains of more than 11 per cent. Fewer than a quarter (23 per cent) reported reduced sales year over year.

Comparing 2022 to pre-pandemic levels, the majority (52 per cent) said their sales are higher. About one in three (29 per cent) reported lower sales while the rest (19 per cent) said things are the same.

Looking to the year ahead, three in five (61 per cent) believe sales in 2023 will outdo 2022.

As for specific jobs performed at shops, 47 per cent of respondents said they’re going more oil changes, compared to 41.5 per cent who said there has been little change in 2022 compared to the previous year. Diagnostics was another area where more reported a business increase (44.3 per cent) compared to those who said there was little change (43.4 per cent).

In tire change/sales, 45 per cent said there was little change while 36 per cent saw business increase. In preventive maintenance, 41.5 per cent said there was little change as 40 per cent saw business grow.

When it comes to getting the parts, shops are having issues no matter where they look. Almost nine in 10 (89 per cent) said they had issues with their jobber while 94 per cent had issues with new car dealers.

Everyone reported seeing price increases from their jobber as 70 per cent said they’ve seen prices jump more than 6 per cent.

“The automotive aftermarket remained buoyant in 2022 with a majority of retailers seeing growing sales and expecting further growth throughout 2023,” said Andrew King, managing partner at DesRosiers. “However, persistent issues surrounding parts supply and prices remain problematic across the industry.”

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