The Impact of the Individual
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Not too long ago I sat down with Brad Morris to interview him for the cover story on his new chairmanship of the Automotive Industries Association. “The Detail Guy” was the title of the article, which appeared in our October 2009 issue, and he has yet to live down the new nickname.
We discussed, at length, the downside of rapid economic recovery. The economic environment was challenging enough without piling on the need to access credit to keep pace with rapid shifts in production needs, tax fledgling systems put into place to deal with the need for greater efficiency, and having to absorb organic growth and car-dealer-driven shifts in the marketplace at the same time.
It now seems like we need not have worried so much about rapid recovery, so much as understand what to do with a market metamorphosis.
The aftermarket is not the same as it was when we went into the economic chasm not all that long ago. From a challenged market to one that has become newly reawakened, refocused, and re-energized has taken less time than anyone could have imagined.
Yes, the service bays in many locations could be busier than they are, but that will come. What is more noticeable, and I believe more important, is the positive outlook by individuals at all levels of the aftermarket.
Not to make light of the challenges ahead, but there are very few who look to the future and believe that the prospects ahead are worse. Quite the contrary: The general mood is optimistic, and many are seeing growth every day.
Frankly, two or three years ago, I dreaded asking the simple question, “How’s it going?” That trepidation appears now to have passed.
Sure, the effect of a rise following a deep trough can be mainly psychological, but it’s often psychology that drives business and the market, not the other way around.
If you don’t believe me, ask yourself why people get so wrapped up in how the stock market is doing even when they don’t own any stocks. Sure there is an argument to be made about equities and what they mean for the market at large, but when the Dow or the TSX drops a few points, or the dollar shifts, people tend to react out of proportion to the actual impact on their own finances. They hold onto their dollars, tell everyone who will listen that they’re freaked out, and before you know it you have a good old-fashioned economic reversal.
Now, having trudged our way through most of it, people are seeing some bright patches and declaring some degree of victory.
In any case, it is heartening to have conversations with business leaders who reveal that this year is better than last, and is expected to improve even further still. In some cases, increases are into the double-digit percentages and climbing.
At the very least, this means that consumers have decided that they can no longer put off vehicle maintenance. Even discretionary purchases at the performance level are creeping up. It’s all great news for the industry, which has emerged stronger, leaner, more responsive, and better equipped to handle the needs of the marketplace.
— Andrew Ross, Publisher and Editor
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NEXT MONTH
Business Technology hits May with a look at new tech tools. Plus Ride Control, Emissions Tech, Cooling Systems, and Heavy Duty Truck Opportunities.
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