Jobber News reached out to several leaders in the supply and distribution segment of the automotive aftermarket and asked them what they see happening in the industry over the next 12 months, what will improve, what one challenge to the industry will be and what opportunities are out there for jobbers and suppliers alike. We will present their answers in alphabetical order over the coming weeks…
You can view the full feature in our January 2023 issue.
Bill Hay, President, COO, Bestbuy Distributors Limited
In 2023, automakers will continue struggling to replenish new car inventory, leaving many consumers with no choice but to maintain and repair their vehicles. This is good news for the aftermarket.
In my opinion, there are two primary concerns for the aftermarket. One, EV registrations will continue to rise. The aftermarket will be challenged to provide required parts in a timely fashion. While EV part demand will grow considerably, it will be much less compared to ICE. Regardless, distribution networks slow to market EV parts will lose technician support if forced to OEM supply. It’s critical that Canadian WDs align themselves with aftermarket suppliers that have appropriate product offerings and training to support demand.
Two, inflation in Canada has risen significantly. This translates to less discretionary income for Canadians, which could see them delay vehicle maintenance. Aftermarket distribution networks will need to ensure they remain competitive (i.e., strong value offerings and overall competitive prices) as they market aftermarket parts to consumers.
Not surprisingly, inventory availability will be as important as ever. Those with the parts that match market demand will win and win big. Inventory management for manufacturers, WDs and jobbers is more important than ever. The right part, at the right time, at the right price will continue to lead to success.
E-commerce activity certainly has gained popularity in recent years in the aftermarket. Its growth has incredibly accelerated in the wake of the pandemic. Distributors that fine-tune and/or invest in various e-commerce sales strategies, will certainly be positioned well for substantial incremental growth.