Auto Service World
News   July 2, 2020   by Allan Janssen

Supply chain harder hit, but more optimistic: AIA analysis

Deeper analysis into the second business conditions survey conducted by the Automotive Industries Association of Canada (AIA) suggest the automotive aftermarket supply chain has been harder hit by the coronavirus pandemic, but remains more optimistic than the mechanical repair sector.

The business conditions survey, originally released June 24, was based on responses from 81 people in the supply chain ( parts manufacturers, major retailers, wholesalers, and warehouse-distribrors).

Of them, a quarter (25%) reported that their businesses were “very disrupted” while 10% reported they are “functioning normally.”

Forecasting conditions over the next 30 days, 63% of respondents in the supply chain believe we will start to see a recovery, 30% say business will return to normal (pre-Covid) conditions, and 5% things will get worse.

Their main concern is the possibility of a second outbreak of Covid-19 that shuts down business.

By comparison, respondents in the mechanical repair sector (a total of 139 people) reported being less impacted by Covid, and somewhat less optimistic about recovery.

Some 16% reported that their businesses have been “very disrupted” while 13% say they are operating normally.

As for forecasting, 43% predicted a recovery beginning in the next 30 days. Twenty four percent believe business will return to normal (pre-Covid) conditions, and 14% say things will get worse

Their biggest concern is economic recession stemming from Covid-19 and social unrest.

As far as mobility trends:

Workplace travel is down 40% from baseline, according to Google Community Mobility Reports. Retail and recreational travel is down 21%



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