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.
Zara Wishloff, President, CEO, Automotive Parts Distributors
Supply chain correction will continue from last year. While ocean ports and shipping have somewhat stabilized, there are still unique global issues affecting manufacturing. There is some artificial demand in the market that the industry will have a tough time adjusting to. Many lines have experienced growth from competitor shortages. This spike in volume can’t be sustained when the market corrects. Warehouse distributors and jobbers have the challenge of navigating and adjusting for real growth versus perceived growth.
With rapidly increased interest rates, accounts receivable will have to be monitored diligently. The cost of business loans is up substantially. Any businesses with large debt ratios will experience cash flow issues. Add to that the fact that Canada Emergency Business Account loans (totalling $49.2 billion) from COVID are due in December. While this date was extended, we must be cognizant that many small businesses will feel pressure to repay the minimum amount to receive their federal loan forgiveness.
There is still an anomaly in the used/new car market which has shot the price of used vehicles up. The aftermarket can take advantage of repairs in the used car market. Maintenance makes more economical sense for the consumer as the price of these assets soar and the supply of new vehicle alternatives is limited.
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