AIA Launches Resource for Aftermarket Regulation

Recognizing the need to get a better handle on the regulatory regime affecting aftermarket businesses and to improve their ability to operate in this environment, the AIA, with the support of the Aerospace and Automotive Branch of Industry Canada, has published a report called the "Regulatory Environment for Canada’s Automotive Aftermarket Industry – The Key to Better Understanding".
For aftermarket companies, the true value of this report lies in the legislative and regulatory summaries that accompany it. The summaries interpret the relevant information in the statutes and regulations as they apply to the automotive aftermarket industry, and help identify which segments of the industry are most affected. The summaries also point to training and information resources when they exist.
In all more than 100 federal and provincial acts were identified, with over 200 regulations that apply to the automotive aftermarket industry in Canada.
"Government regulations impact upon any business," says Ray Datt. "AIA felt that over the last several years, the increasing number of government regulations, particularly those related to the environment, had made it difficult for companies in the automotive aftermarket to fully comprehend their responsibilities in this area. One of AIA’s core areas of activities is Government Relations. We think this report and the appendices that accompany it are one of the most valuable industry resources that AIA has completed in several years."
The report, as well as the federal and provincial legislative summaries are currently posted on the AIA website as Portable Document Files (PDFs). AIA is planning to redevelop its website by the end of 2004. The information contained in "The Regulatory Environment for Canada’s Automotive Aftermarket Industry – The Key to Better Understanding" report will be developed into a major automotive aftermarket government affairs and legislation web portal. "This tool will be very valuable to AIA members who have limited resources, so that they may better meet their regulatory obligations," says Ray.
As part of the project, AIA surveyed its members to determine levels of awareness and compliance with regards to government legislation and regulations. The results confirm a high level of awareness of certain regulatory issues as well as concern over the capacity for regulatory compliance. AIA believes higher awareness in areas such as the Transportation of Dangerous Goods legislation can likely be attributed to recent changes to those regulations.
Close to 80% of respondents indicated that they have a person or persons specifically responsible for understanding and ensuring compliance with government regulations. This indicates that the industry is aware of the importance of compliance. However, how much resources were dedicated to this task is unknown, as is their level of success regarding compliance.
AIA suggests that while most business owners in the automotive aftermarket industry are willing to comply with government regulations, there is concern within the industry, that some regulations may not receive the necessary attention from business. This can be attributed to two things:
The language of most regulations in Canada is complicated and cumbersome and the effort to become familiar with these regulations is substantial;
The tiers of regulations and the frequency with which these regulations are amended further complicate the process for business owners and compound the cost of doing business.
The report concludes with seven major recommendations in the three core areas of Awareness, Training, and Access to Information and Training.

Awareness
Regulations change frequently. Regulatory summaries should be updated as regulations are amended or new regulations are introduced.
The grass roots of the membership form the basis of issues management. A forum needs to be developed to allow for this, in addition to the existing AIA Government Relations Committee.
AIA must act as an industry leader and resource to the aftermarket industry. AIA should devote additional resources to member communications of compliance issues through seminars, articles in Express Magazine, enewsletter links and information on the AIA website and member information bulletins.

Training
While AIA provides some training functions and opportunities (TDG and Hazardous Waste Guidelines), it is not fundamentally a training organization. It is appropriate, however that AIA manage information related to legislative activity. Access to the information should rest with AIA.
Consideration should be given to having training links developed and managed by a third-party organization for ease of access and to simplify the decision-making process for businesses in the automotive aftermarket industry. It would be a clearinghouse for regulatory information and resources.
In addition to acting as an information clearinghouse, this new body could pilot a new training initiative that would include a program to certify private training organizations to ensure they meet the specific needs of the automotive aftermarket.

Access to Information and Training
The outputs from this project should be developed into a more robust online information portal.

The Automotive Industries Association of Canada’s mandate is to promote, educate and represent members in all areas that impact the growth and prosperity of the industry.