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News   January 16, 2019   by Adam Malik

How much will disruptors cost the aftermarket?


What will the economic impact of disruption be for the automotive aftermarket? The answers to that question are in the latest report from the Automotive Industries Association of Canada

A CASE of Disruption: Economic Impacts to the Canadian Automotive Aftermarket was compiled with the Conference Board of Canada to see how CASE (connected, automated, shared and electric) technologies will impact the aftermarket, along with recommendations to support the industry through the transition period.

“Connected vehicles will have consequences for the aftermarket if traditional aftermarket businesses are bypassed,” the report says in one of its summaries, adding that it will be the connected car that has a bigger impact than autonomous or electrification will.

The report found that with 400,000 people employed in the aftermarket, about $27.6 billion in economic activity was created in 2017. By moving to a CASE future, it estimates that by 2051 almost 50,000 jobs could be lost, along with $5.4 billion in labour income and $7 billion in GDP. It will take time for these impacts to be felt — over the next 30-plus years, incremental technological changes will slowly create ripple effects.

The report recommends that the aftermarket develop a roadmap and transition strategy that addresses things like vehicle data access, working with mobility service providers to service fleets, look at opportunities to consolidate, support human resources and opportunities to train and retrain employees and develop purchasing partnerships to enhance procurement power.

Members of the AIA can download the report for free while non-members will have to pay $399