Fuming Over The Exhaust Market?

There was a time when the bulk of a service provider’s business was comprised of exhaust system replacements. Today, this is simply not the case.

“For Speedy and Midas, at one time, 50-60 per cent of their business was working with the exhaust. Now they’re lucky if they do 10 per cent,” says Joe Mercanti, director of sales for Bosal North America.

This market change has been driven by the changes on the construction of today’s exhaust system. Stainless steel composition has allowed exhaust systems to function longer, oftentimes outlasting a vehicle’s lifespan. And there has also been the growing popularity of one-piece, direct fit systems which has made installing exhausts much easier and faster. These changes, along with many others, have brought challenges and opportunities for service shops.

Back to Basics

Since the proliferation of stainless steel exhaust systems, replacement rates have decreased dramatically. Where in the past an exhaust system would have to be replaced roughly every four years — due to corrosion, overheating and just general wear-down of the components — stainless steel exhausts have effectively extended the replacement period for an exhaust system, anywhere from eight to 12 years. In terms of general maintenance, however, there is still a steady flow of business for maintaining and replacing mufflers and exhaust pipes just by virtue of the fact that those parts are under the car, which exposes them to a lot of grueling punishment.

“Be sure to check stress point areas like the flex hose and flex couplings since they’re in there taking up most of the vibration while the vehicle’s in motion. And because they tend to be in constant motion, they also tend to be a premature failure point on a system,” says Brian Pyett, general manager for IMDA Group Inc. (Independent Muffler Shop Dealer Association), a buying group for muffler shops that are independently owned.

It’s also never a good sign when a muffler dangles from the vehicle’s undercarriage. This causes undue stress across the entire system.

“If an exhaust system was hanging for a long time as a result of a faulty isolator or damaged bracket it can cause vibrations in some areas and fatigue in other areas. A lot of new cars are using flex couplings to take up engine vibration, but if that system isn’t hung properly it’ll prematurely fail,” says Bill Shutt, emissions control marketing manager for Tenneco Inc.’s Walker brand of exhaust part systems.

Some urge technicians to check to see whether or not the exhaust system, if it fails, needs to be replaced entirely with a custom direct fit. Direct fit systems have the advantage of being relatively easy to remove and install, increasing vehicle turn around in a shop’s bays. But say there’s a scenario where a customer comes in with a damaged muffler and wants a replacement component and all you have to replace it with is a complete exhaust assembly. How should you approach this?

“They’re all one-piece. So when any one piece is affected it may not be possible to replace just one part,” says Jim Fox, national sales manager for Maremont, “And whether or not the aftermarket exhaust is multi-piece or one piece. If one part of that assembly from OE has gone bad it’s likely the rest of it isn’t far behind.

“There are also advantages to offering multi-piece pipes and mufflers as opposed to one piece. The advantage to the one piece is that they’re easier to install but there are advantages to the multi-piece from an inventory perspective. You can get more coverage with less components and inventory, meaning you’ll have one muffler that will fit three different vehicles.”

Just as crucial in maintaining an exhaust system are related components like the O2 sensors.

“I think everybody is just going by what their sensors are telling them when they’re reading their computers,” continues IMDA Group’s Pyett. “I don’t think they’re thoroughly checking basic maintenance procedures. O2 sensors are no different from spark plugs. They need to be replaced, especially when you’ve got upstream/downstream sensors. Some of these new applications you’ve got up to seven or eight sensors on a vehicle. If they’re not being checked or properly maintained, they’ll wear out. I think there has to be some more exacting services on these components to protect the exhaust system.”

While it’s important for any service centre to effectively market the products it sells, it’s another thing entirely to see it translate into actual tangible sales. One suggestion is to offer your customers a free inspection of the exhaust system to physically show them the damaged or worn parts and why they need to be replaced.

“It’s important because it’s something that typically the consumer doesn’t think of until it’s too late,” says Shutt, “Have a technician come in, check the isolators, check the hangers, get somebody in there and take a look at the system to do preventative maintenance. I think it would be beneficial to both the manufacturer and the technician to do this because you’re liable to catch problems before they turn into catastrophic failures.”

Performance exhaust

For those service providers thinking about making the leap to performance exhausts, consider that while certain customers will shell out top-dollars for those premium products, ask yourself: “Who is my main exhaust customer?”

“Before they jump into that performance side of the business, the biggest question they need to ask is whether they want to specialize in a certain area be it import or truck or pass-car. I think they tend to do better if they specialize. Performance upgrades for diesel trucks, for instance, has been a big piece of the segment here in the last few years and has been growing. So if you specialize in the truck market it may be easier for you as a technician to gain some business. He should really take a look at his consumer, who he’s got coming through the door to help decide which piece of the performance business he should specialize in,” says Shutt.

Keep in mind, however, that performance products are very much a want item and sales will drop when the economy goes soft like it is now. The simple difference between the need parts of a vehicle and the wants is that the wants go away, while the needs stay. In the words of Brian Pyette, “Resist the urge.” The replacement market for mufflers, catalytic converters, and one-piece direct fit systems are growing. If you’re not as certain with the performance market end of things it’s better just to stay out of it.

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Reference List

Bosal USA Inc. www.bosalna.com

Maremont www.maremont.com

Tenneco Inc. www.tenneco.com