There could be some good news amidst the bad news
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With ArvinMeritor Inc. announcing it is selling is exhaust and Purolator filter business, and news of Dana Corp. filing for Chapter 11 bankruptcy protection in the United States – this coming on the heels of the continuing problems with Delphi Corp. — many in the aftermarket industry might be a bit surprised to hear that in all this bad news there may actually be some good news.
Throughout much of the 1980s and 1990s, the business mantra was consolidation. With this in mind, many companies went on a buying spree, grabbing other companies in an effort to grow and capture market share with those purchased company’s brands and customers. The aftermarket saw its share of this frenzy, with some established companies and their well-respected brands being purchased by others. It was not uncommon for some excellent brands to be lost in the shuffle, or for some brands to be neglected as problems with various mergers began becoming apparent.
So the recent news that ArvinMeritor is selling off parts of its business may actually be a good thing for the industry in the long-run. The new owners of these brands, one sincerely hopes, will realize the quality and success of the products now in their possession and will work toward improving the product’s availability in the market. And there is a good possibility of increasing competition in the market which should translate into better prices for the aftermarket.
Certainly competition and improved availability of parts can only be beneficial to a market that has been experiencing some tough times. Right now, many independent service providers have to compete more aggressively to get car owners into their shops. And to add to the list of difficulties, it’s now harder to get young people to consider the field as a long-term career choice; and it does not help many high schools have dropped altogether traditional automotive shop classes.
Getting young people into this industry is something independent service providers need to be more proactive on. One of the reasons many young people don’t consider a career in automotive repair is many have come to believe the work is dirty, low-paying and something of a dead-end; it’s not like an evolving field as computer science. But nothing could be further from the truth. But independent service providers need to make that clear by going to schools during career days and talking about the work they do and the career challenges and skills needed in this industry. They need to become more active in co-operative programs and even offer to come in and teach a class on automotive repair in the schools that still have auto shop classes. A good first step might be is to attend or take part in CarFix World, happening September 29-October 1 at Toronto’s Exhibition Place. On opening day, students from over 600 Ontario and Quebec high schools will be in attendance, many with resumes looking for their first break into the industry. What a perfect opportunity to connect with these students, to show them the skills and challenges this industry needs and to offer the chance to answer questions from them. Who knows, you may just find your next skilled mechanic in that Grade 12 student nervously passing their resume to you.
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