technician attitude study
Transcription
technician attitude study
6 www.aftermarketbusiness.com APRIL 2015 Talk shop anytime Vol. 124, No. 1 The leading source for market trends & analysis GLOBAL CARGO FLOW WOES REMAIN DESPITE SETTLEMENT OF U.S. DOCK DISPUTE COMMUNIT Y TRENDING RESEARCH SEEKING COMMON GROUND TACKLING DATA ANALYTICS TECHNICIAN ATTITUDE STUDY Aftermarket, OEMs meet on telematics Evaluating big data to predict car owner behavior Deep inventory, quick delivery are key needs GET FREE TRAINING AT April 24-26, 2015 Chicago, IL REDEEM FREE TRAINING WITH PROMO CODE AMBW Register at http://www.automechanikachicago.com magenta cyan yellow black ES592233_AMB0415_CV1.pgs 03.27.2015 23:11 ADV EXPERTS TRAINING EXPERTS Meet us at Automechanika Chicago April �����, ���� Booth #����, McCormick Place West Experience the full range of products Schaefler Automotive Afermarket ofers. Our display includes daily hands-on, in-depth technical training in the latest automotive technologies including wheel and hub assemblies, clutch systems, clutch hydraulics, overrunning alternator pulleys, and more. Our dedicated team of product and training professionals are on hand to answer your questions, ofer best practices and proven tips/tricks to reduce your bay time, increase efciencies and improve customer satisfaction. LuK, INA, and FAG have built a legacy of pioneering technologies, earning their place as the engineering partner and supplier for nearly every originalequipment vehicle manufacturer worldwide. Schaefler Automotive Afermarket has an equally strong heritage as a systems innovator in the replacement market, developing unique products and solutions engineered to provide flawless performance, unbeatable durability and high customer satisfaction. We are MORE than just products and technology, we are committed to the success of our afermarket partners and ofer unique solutions for mutual success. ���� Wegman Drive • Valley City, OH ����� Phone ��� ��� ���� • Fax ��� ��� ���� www.Schaeffler-Aftermarket.us 5(3;3(57/LYHLVDEUDQGRI6FKDHIÀHU*URXS86$,QF magenta cyan yellow black ES587233_AMB0415_CV2_FP.pgs 03.21.2015 01:12 ADV 24950 Country Club Blvd., Suite 200 North Olmsted, OH 44070 Fax: (440) 891-2675 www.aftermarketbusiness.com Aftermarket Business World EDITORIAL STAFF Group Content Director Mike Willins [email protected] (440) 891-2604 Managing Editor Bruce Adams [email protected] (440) 891-2617 Technical Editor Peter F. Meier [email protected] (813) 909-3803 Columnists Automotive Aftermarket Suppliers Association/OAC [email protected] Stephen Barlas [email protected] Bob Moore [email protected] Donny Seyfer [email protected] APRIL 2015 Vol.124, No. 01 Talk shop anytime COMMUNITY Read It On 8 AftermarketBusiness.com Aftermarket, OEMs meet on telematics AIR SUSPENSION OPENS ARNOTT EXPANDED R&D FACILITY Competing trade groups align, meet with OEMs to seek common ground. & PLUS 10 BEST OF THE BLOGS The 68,000-square-foot building increases the company's campus to almost 300,000 square feet on more than 21 acres. TOP VIDEOS [KEY: /Arnott] CALENDAR SETTLEMENT WITH BMW ON FTC WARRANTIES APPLAUDED The Auto Care Association applauds the FTC settlement against the MINI Division of BMW over its violation of the Magnuson-Moss Warranty Act. Sale has air of uncertainty Purchase of Uni-Select USA by Icahn Enterprises raises many questions. [KEY: /FTC] Mark Smith [email protected] News Correspondent James E. Guyette [email protected] Contributors Brian Albright [email protected] Andy Adams [email protected] Art Director Steph Benz Senior Designer Stalin Annadurai 12 Anxiety up as EPA moves on ozone BUSINESS STAFF Vice President General Manager Jim Savas ONLINE VIDEO KNOW-HOW AftermarketBusiness.com/video10 Upcoming Webinars and Archives Check out our technical, service and business webinars. SearchAutoParts.com/webinars WATCH THE TRAINER ON YOUR MOBILE PHONE! Aftermarket Business World videos Business Manager Nancy Grammatico Sr. Production Manager Karen Lenzen (218) 740-6371 [KEY: /Smyth] ONLINE COVERAGE Group Publisher Terri McMenamin [email protected] (610) 397-1667 Administrative Coordinator Adriana Silva Smyth Automotive Parts Plus opened its ffth warehouse distribution center in Hilliard, Ohio. Changes also could affect availability of some types of reformulated gasoline. Band Manager James Hwang [email protected] (714) 513-8473 SUBSCRIPTION CHANGES/ CUSTOMER SERVICE (888) 527-7008 (218) 740-6395 AUTOMOTIVE EXPANDS SMYTH IN CENTRAL OHIO Doing business at Automechanika Chicago is easier than ever, according to Don Welsh, CEO of Choose Chicago. Get weekly updates about the latest aftermarket technology information. AftermarketBusiness.com/video10 AftermarketBusiness.com/IT Circulation Director Anne Brugman Circulation Manager Tracy White (218) 740-6540 Marketing Director Boris Chernin [email protected] (310) 857-7632 Transmission focused technical content at your fngertips. MotorAge.com/PowerTrainPro FOLLOW US! AUTO PARTS RETURNS OPTIMIZING SUPPLY CHAINS AftermarketBusiness. com/video13 AftermarketBusiness.com/ video14 Check out breaking news, updates with social media. Twitter: @Aftermarket_Biz, @Motor_Age, @Frost_Sullivan Facebook: Aftermarket Business World Workshop: badams, WAP, Donny Seyer, Chris Travell and more! S E A R C H AU TO PA R T S .C O M 1 magenta cyan yellow black ES594161_AMB0415_001.pgs 03.30.2015 20:47 ADV Not subscribed to Aftermarket Business World digital? Sign up FREE TODAY for: ➤ international market insight ➤ more from favorite columnists ➤ technology updates ➤ industry research © Advanstar Communications Inc. 2015 Printed in U.S.A. TRENDING 13 SUBMISSIONS: AftermarketBusiness World welcomes unsolicited articles manuscripts, photographs, illustrations and other materials but cannot be held responsible for their safekeeping or return. MEMBER OF: UBM ADVANSTAR: Chief Executive Offcer Joe Loggia Executive Vice-President, Life Sciences Tom Ehardt Executive Vice-President Georgiann DeCenzo GLOBAL CARGO FLOW WOES REMAIN DESPITE SETTLEMENT OF U.S. DOCK DISPUTE DEALERSHIPS PRESERVING THE NEW CAR LOOK NEW WIRELESS TOOL FOR TECHS BY JAMES E. GUYETTE | NEWS CORRESPONDENT BY BRIAN ALBRIGHT | CONTRIBUTING EDITOR 15 20 Service advisors at Ford dealerships will be armed with a wireless tablet computer and Web-based application. INTERNATIONAL AUTOMECHANIKA CHICAGO SET TO KICK OFF BY BRUCE ADAMS | MANAGING EDITOR inaugural show is dedicated to 18The technician training and showcasing the latest tools, equipment and products. Executive Vice-President, Business Systems Rebecca Evangelou Executive Vice-President, Human Resources Julie Molleston VENDORS Paint protection flms are becoming a lucrative aftermarket sales option. Executive Vice-President Chris DeMoulin TECHNOLOGY TACKLING DATA ANALYTICS Executive Vice-President, Strategy & Business Development Mike Alic Sr Vice-President Tracy Harris Vice-President, General Manager Pharm/ Science Group Dave Esola Vice-President, Legal Michael Bernstein Vice-President, Media Operations Francis Heid BY BRIAN ALBRIGHT | CONTRIBUTING EDITOR Vice-President, Treasurer & Controller Adele Hartwick lab uses Big Data and analytics to 22Virtual help car manufacturers anticipate customer behavior. UBM AMERICAS: Chief Executive Offcer Sally Shankland Chief Operating Offcer Brian Field Read ReadItItOn On AUTOMOTIVE PARTS ASSOCIATES ELECTS BOARD MEMBERS APA elected Joseph Koudsi as a new board member and re-elected Ben Yelowitz and Robert Jacobs. [KEY: /APA] 2 APRIL 2015 magenta cyan yellow black Chief Financial Offcer Margaret Kohler AftermarketBusiness.com BENNETT AUTO SUPPLY REVAMPS WEBSITE, MARKETING EFFORTS The branding refresh is centered around the company’s new tagline, ‘Do it yourself, but not alone.' [KEY: /Bennett] AUTO CARE ASSOCIATION CEO KATHLEEN SCHMATZ TO RETIRE Kathleen Schmatz, president and CEO of the Auto Care Association, plans to retire Dec. 31, 2015 [KEY: /Schmatz] UBM PLC: Chief Executive Offcer Tim Cobbold Group Operations Director Andrew Crow Chief Financial Offcer Robert Gray Chairman Dame Helen Alexander AftermarketBusiness.com ES594163_AMB0415_002.pgs 03.30.2015 20:47 ADV ul Ra iC Cyli n D eR Singl e Hy D HEaVyWEigHt lifting OPTi On a l RO ll in g jaCkS Meets or exceeds the standards prescribed by anSi/ali alCTv-2011 P Su eRSizeD CaBl e S S ave He BendPak’s HDS-Truck Series four-post lifts are a whole new breed of rugged. They’re newly engineered heavy-duty truck lifts that make light work out of heavy lifting. They work better, are built to last, and feature upgrades that increase safety, durability and productivity. The four-post HDS series provides a generous 18,000 to 40,000-lb. lifting capacity and features extra-wide runways to accommodate a wide variety of vehicles configurations. Contact your local BendPak/Ranger dealer or call 1-800-253-2363. Call 1-800-253-2363 ∙ www.bendpak.com/purchase © 2014 BendPak / Ranger Products are registered trademarks. HEaVyWEigHt portability Full M O Bi li TOuCHPaD CO MSRP $24,295 nT RO lS a Dj le W Heel F OR kS magenta cyan yellow black uS B Ta BendPak portable column lifts offer the versatility and time saving features to keep your work bays more productive and your profits soaring. no other system on the market matches it for safety, flexibility and ease-of-use. With a lifting capacity of 72,000 pounds per set of four, never before has a series of portable column lifts delivered so much power and versatility for both indoor and outdoor use. Contact your local BendPak/Ranger dealer or call 1-800-253-2363. © 2014 BendPak / Ranger Products are registered trademarks. Ty Call 1-800-253-2363 ∙ www.bendpak.com ES587242_AMB0415_003_FP.pgs 03.21.2015 01:12 ADV OUR ON OUR BIGGEST DEALS EQUIPMENT tails Visit bendpak.com for full de FREE * SHIPPING $2,945 HD-9 / Wide-Standard Capacity: 9,000 lbs. Overall Length: 200” $3,010 XPR-10A / Standard Capacity: 10,000 lbs. Overall Height: 145” FREE TRUCK AND VAN ADAPTERS $6,080 RL-8500XLT / Heavy-Duty Combination Brake Lathe Services rotors and drums Includes bench and tooling $1,635 DST-2420 / Wheel Balancer Max. Tire Diameter: 47” Max. Tire Weight: 145 lbs. HURReY! ** $1,955 MD-6XP / Mid-Rise Lift Capacity: 6,000 lbs. Height Range: 4.75”- 48” $4,895 Thes prices won’t last ;35&&OHDUƮRRU Capacity: 12,000 lbs. Overall Height: 170” FREE TRUCK AND VAN ADAPTERS $3,825 R76ATRF / Tilt-Back Power Assist Internal Clamping: 10”- 30” Max. Tire Diameter: 43” $4,250 HDS-14 / Standard Capacity: 14,000 lbs. Overall Length: 241” $1,940 LS580V-601 / Air Compressor Horsepower - 5 Hp Max. CFM - 22.8 / 175 psi 1-805-933-9970 • www.bendpak.com Contact your local BendPak/Ranger dealer for details FREE SHIPPING * *Free shipping on all BendPak and Ranger Products to most areas in the 48 contiguous states. © 2015 BendPak / Ranger Products are registered trademarks. ** Valid at participating dealers. Prices subject to change after June 31, 2015. magenta cyan yellow black ES587278_AMB0415_004_FP.pgs 03.21.2015 01:14 ADV Looking for new equipment? Check out our website for offerings from top companies. SPECIALTY PARTS UPKEEP/MAINTENANCE SHOP EQUIPMENT SHOP MATERIALS PAINT & REFINISH REPLACEMENT PARTS VEHICLE STYLING BUSINESS SYSTEMS ORGANIZATIONS/ ASSOCIATIONS OFF-ROAD …AND MUCH MORE Eastern/Southern States Paul A. Ropski, Regional Sales Manager Tel: (312) 566-9885 Fax: (312) 566-9884 [email protected] RESEARCH 24 SALES STAFF Midwest/Western/Northern California Chuck Steinke, Regional Sales Manager Tel: (630) 369-0752 Fax: (630) 369-3755 [email protected] Ohio/Michigan/Southern California Lisa Mend, Regional Sales Manager Tel: (773) 866-1514 Fax: (773) 866-1314 [email protected] TECHNICIAN ATTITUDE STUDY Inside Sales/Classifed Sales/ Recruitment Keith Havemann, Sales Representative Tel: (310) 857-7634 Fax: (310) 943-1465 [email protected] List Rental Sales Tamra phillips [email protected] (440) 891-2773 Permissions/International Licensing Maureen Cannon (440) 891-2742 Reprint Services 877-652-5295, ext 121 [email protected] Outside U.S. dial 281-419-5725 Ext. 121 HAVING THE RIGHT AUTO PARTS, ABILITY TO DELIVER QUICKLY ARE KEYS TO SELLING TO TECHS AD INDEX Marketing Boris Chernin, Marketing Manager Tel: (310) 857-7632 Fax: (310) 943-1465 [email protected] That describes our new way of handling your inquiries about advertisements and product releases. You may go to www.motorage. com/readerservice and fill out a short form and we’ll send your request immediately (electronically) and directly to the respective manufacturers who have the information you want. IT’S QUICK! IT’S EASY! IT’S DIRECT ! You may also check the items you are interested in and fax the sheet to us at (416) 620-9790 to get more information on the products of interest. Like we said — quick, easy, direct. ADVERTISING AND EDITORIAL PRODUCT INDEX ADVERTISER INDEX................................................................ PAGE ☐ NGK SPARK PLUGS(USA)INC .......................................................35 ☐ ARNOTT INC ................................................................................21 ☐ PHILIPS AUTOMOTIVE LIGHTING .................................................27 ☐ BENDPAK INC .................................................................. 3,4,45,46 ☐ RAYBESTOS BRAKES .................................................................CV4 ☐ CONTINENTAL ...........................................................................CV3 ☐ S K F USA INC ..............................................................................25 ☐ FEDERAL MOGUL CORP - ANCO..................................................43 ☐ SCHAEFFLER GROUP USA INC...................................................CV2 ☐ FEDERAL MOGUL CORP - CHAMPION .........................................39 ☐ STANDARD MOTOR PRODUCTS .....................................................9 ☐ FEDERAL MOGUL CORP - FEL-PRO .............................................33 EDITORIAL PRODUCTS............................................................ PAGE ☐ FEDERAL MOGUL CORP - CHASSIS ............................................29 ☐ PERFORMANCE REAR AXLE SHAFTS ..........................................44 ☐ G M B...........................................................................................41 ☐ FRONT AIR STRUTS FOR BMW X5 ...............................................44 ☐ GABRIEL RIDE CONTROL INC.......................................................23 ☐ EVOLUTION WIPER BLADES ........................................................44 ☐ JIFFY-TITE.................................................................................... 17 ☐ WEAR RESISTANT MULTI V-BELT.................................................44 ☐ KYB AMERICAS CORP..................................................................37 ☐ MASS AIR FLOW SENSORS..........................................................44 ☐ MAHLE.........................................................................................31 ☐ FAST ORANGE HAND CLEANER ...................................................44 ©2015 Advanstar Communications Inc. 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AFTERMARKET BUSINESS WORLD welcomes unsolicited articles manuscripts, photographs, illustrations and other materials but cannot be held responsible for their safekeeping or return. To subscribe, call toll-free 877-527-7008. Outside the U.S. call 218-740-6477. AD DEADLINES: Insertion orders–1st of month preceding issue date. Ad materials–5th of month preceding issue date. To subscribe, call toll-free 888527-7008. Outside the U.S. call 218-740-6477. S E A R C H AU TO PA R T S .C O M 5 magenta cyan yellow black ES594162_AMB0415_005.pgs 03.30.2015 20:47 ADV COMMUNITY EXPERT OPINION, INPUT FROM THE FIELD, FORUM COMMENTS, & SOCIAL MEDIA STAY ON TOP OF INDUSTRY DEVELOPMENTS. Sign up today for FREE SUBSCRIPTIONS to Distribution E-News & Alerts Aftermarket Technology E-News Aftermarket Business World E-Zine AFTERMARKETBUSINESS.COM/SUBSCRIBE AFTERMARKET Is a lack of knowledge hurting you? INDUSTRY & Industry suppliers export $62 billion in automotive parts to Pacific countries, including South America and Asia, and import $74 billion. Especially for small to medium-sized businesses, the unknown can be an undoing BY ROBERT SPITZ | WORKSHOP MEMBER I n most small shops, those that have been in business for longer than five years and are doing somewhere between $5,000 and $25,000 in sales a month, the owners have come from the technical side of the business. Their time is spent primarily fixing cars. Other shop owners have pushed their monthly sales up into the $25,000 to $45,000 range. In those shops, the owner tends to be the service writer and oversees the rest of the business. Their technicians fix most of the cars. In a small percent- BEST OF THE BLOGS age of shops the owner hires a service writer, while continuing to work on cars himself. Sometimes owners bring in their wives or girlfriends to help out and eventually handle customers. What all the shops in this range have in common is that their business grew to a certain level of monthly sales and then ran into a barrier that seemed to stop the business from growing and expanding. Common barriers: Having problems finding good help, not enough customers, working too many hours, not making enough money, owners are overwhelmed and owners have to handle every problem and check on BECOME A BLOGGER AFTERMARKETBUSINESS.COM/BestBlogs BEST OF THE BLOGS are articles written by bloggers on AMBW’s community pages. Pete Meier The causes of ‘chatter’ One of the most diffcult clutch related problems is chatter. Chatter is sometimes diffcult to diagnose because it has many root causes, and some of them may not seem related at frst. most evident when engaging the clutch or launching the vehicle. The driver will sense this at any contact point they have with the vehicle, such as; seat, steering wheel, or foor of the vehicle. Chatter has two primary origins: within the bell housing or the suspension and/or driveline. Chatter can be detected as a pulsing or a grabbing sensation originating from the driveline or chassis / suspension and resonating into the vehicle cabin. Pete Meier The driver may complain that the vehicle is hard to maneuver because the entire vehicle is “bucking or jumping”. This will be especially evident while parking in tight spots, leaving from a traffc light or while trying to back up a trailer. Chatter is Up to 99 percent of a car battery can be recycled. Electrolytes can be made into detergents and the plastics and metals are reused to make new batteries. This means you could be driving a car that’s powered by the same materials that were in a battery 6 APRIL 2015 magenta cyan yellow black Give that battery a new life from your grandparent’s vehicle. Last year, Johnson Controls, a global multiindustrial company recycled 8,000 batteries per hour across its recycling system, making the company the world’s largest automotive battery recycler. In the U.S. and Europe, more than 95 percent of conventional batteries are recycled. AftermarketBusiness.com ES596059_AMB0415_006.pgs 04.01.2015 19:24 ADV PAGE PAGE PAGE 8 10 12 FEATURED WEBCAST March 26TH 2015 Tips to make your shop efficient ATI and MOTOSHOP look at how going digital in systems can streamline a shop’s business. everything or else it doesn’t get done right. The barriers become unsolvable. Owners try everything they can think of to solve the problems. Their solutions: Close the shop, sell the shop, turn the shop over to a SHOP INSIGHT INDEPENDENT THINKING WASHINGTON INSIDER DONNY SEYFER MARK SMITH STEVE BARLAS Aftermarket, OEMs meet on telematics Uni-Select purchase raises questions Anxiety up as EPA moves on ozone family member, hope it will get better, or keep on doing the same thing until they retire or die. These owners have resigned themselves to the “fact” there is nothing that can be done about these problems. REGISTER TODAY MotorAge.com/AMCschedule APRIL 24, 8:30-11:45 A.M. Scan This! Presented by John Anello. TOP VIDEOS TO WATCH NOW APRIL 24, 8:30-11:45 A.M. Gasoline Direct Injection Presented by Scot Manna. MOST WATCHED VIDEO Emissions Control Diagnostics Workshop DOING BUSINESS AT AUTOMECHANIKA CHICAGO IS EASIER THAN EVER, ACCORDING TO DON WELSH, PRESIDENT AND CEO OF CHOOSE CHICAGO. APRIL 24, 2:00-5:15 P.M. Presented by Kris Lewis, sponsored by Walker Emissions Control/Tenneco. The Medium Duty Truck Workshop AftermarketBusiness.com/video10 Auto parts returns in the aftermarket Gailen Vick of the Reverse Logistics Association discusses the key challenges of reverse logistics. AftermarketBusiness.com/video13 Optimizing supply chain performance Charlie Covert, VP of Customer Solutions at UPS, discusses supply chain technologies AftermarketBusiness.com/video14 Scan the QR Code with your smart phone’s camera to watch the video. APRIL 24 TRAINING APRIL 24, 2:00-5:15 P.M. Vendors get a break at Automechanika Chicago Presented by Peter Luban, sponsored by TransTec by Corteco. TO GET THE FREE APP: APRIL 25, 8:30-11:45 A.M. FROM YOUR PHONE’S BROWSER, GO TO: WWW.SCANLINE.COM Understand and Diagnosing Hybrid Vehicles Presented by G. Jerry Truglia. APRIL 25, 8:30-11:45 A.M. We scan the Auto Pro Workshop, the Aftermarket Business World Facebook page and our Twitter feeds to see what you’re saying. Comment there to be heard. @FS_Automotive: Join us for our prestigious ‘Intelligent Mobility’ Conference at the House of Lords & Royal Garden Hotel July 1-2 in London. @pete_meier: Tesla Model X spotted on California roads - Tesla has begun testing the Model X crossover on public roads. @Oreillyauto: Did you know Americans drove over 3 trillion miles last year? That’s like driving down every paved road in the world 260,000+ times. @auto_alliance: Millenials now make up fastest growing segment of auto loaners says TransUnion: 27% of auto loan originations in 2014. @pepboysauto Top 3 reasons for a flat: 1. Sharp Object 2. Valve Stem Leak 3. Tire Bead Leak. the community— join the discussion @FederatedAP Have you answered this month’s Federated/Motor Age ASE Question of the Month? You could be a winner! Aftermarketbusiness.Com/Community APRIL 25, 2:00-5:15 P.M. GM Drivability Presented by John Thornton. APRIL 25, 2:00-5:15 P.M. Essential Scope Techniques Presented by Matt Fanslow. APRIL 26, 8:30-11:45 A.M. Electrical Quick Diag & Repairs Presented by Rich Peterson and G. Truglia. APRIL 26, 8:30-11:45 A.M. Section 609 EPA Certification Presented by Larry Turay, sponsored by the Mobile Air Conditioning Society Worldwide. APRIL 26, 8:30-11:45 A.M. How to Use Digital Marketing to Grow Your Business in a Consolidating Market Presented by Frank Terlep, sponsored by eMarketing Sherpas. APRIL 26, 8:30-11:45 A.M. APRIL 26 TRAINING @NavigantRSRCH: Sales of Electric Motorcycles and Scooters are Expected to Reach Nearly 6 Million a Year by 2024. @autozone: We also carry Duralast Marine Batteries! Purchase one and you could win a Yeti Fishing Package Presented by Danny Sanchez, sponsored by Autoshop Solutions. APRIL 25 TRAINING comments from AMB WORLD’S online communities Fans and Followers Make Sales and Profits Q&A with EricTheCarGuy Presented by EricTheCarGuy. S E A R C H AU TO PA R T S .C O M 7 magenta cyan yellow black ES596058_AMB0415_007.pgs 04.01.2015 19:24 ADV SHOP INSIGHT COMMUNITY DONNY SEYFER Q&A Co-owner Seyfer Automotive, Inc. [email protected] AFTERMARKET, OEMs MEET ON TELEMATICS Competing trade groups align, meet with OEMs E arly in February there was an industry meeting that was significant. For the first time in a very long time, maybe ever, aftermarket leaders sat in the same room with vehicle manufacturers to talk. The outcome was not nearly as important as the fact that almost 70 leaders who have often been described as the Hatfields and McCoys talked for three hours seeking an understanding of the challenges and the aftermarket’s needs related to telematics in vehicles. The presentation made by the auto repair segment was jointly developed by the Automotive Service Association (ASA), New England Service Station and Automotive Repair Association (NESSARA), Automotive Service Councils of California (ASC-CA) and the Alliance of Automotive Service Providers of Minnesota (AASP-MN). Rusty Savignac, president of NESSARA presented on behalf of repairers. The rest of the aftermarket was represented by the Automotive Aftermarket Suppliers Association (AASA), The Auto Care Association, American Automobile Association (AAA), Motor & Equipment Manufacturers Association (MEMA), The Coalition for Auto Repair Equality (CARE), NAPA, ALLDATA, The Equipment and Tool Institute (ETI), Mahle, Bosch and The Automotive Industries Association – Canada (AIA). Twelve auto manufacturers were present including BMW, Chrysler, Ford, General Motors, Honda, Hyundai, Mercedes, Nissan, Subaru, Toyota, VW/ Audi. The majority of automaker representatives came from engineering or public policy. The associations that represent these automakers, the Auto Alliance and Global Automakers, were present as well with Steve Douglas 8 APRIL 2015 magenta cyan yellow black senior director, Environmental Affairs for the Auto Alliance making a presentation on behalf of both associations. A presentation also was made on behalf of tool manufacturers by Kathy Kedzior, manager, business development Mahle Powertrain LLC. Telematics could very well become one of the more contentious topics to affect vehicle owners, vehicle manufacturers, repair professionals and the companies that support them. Security concerns have been at the forefront with each segment offering up various ideas to resolve them. Add in the almost simultaneous action on Capitol Hill, the revelation that BMW vehicles can be hacked and this issue could heat up quickly. ASA believes if the industry can find ways to solve these issues together, including all of the stakeholders, we will be much less likely to find ourselves fighting regulations that limit the ability of the entire industry to bring creative and customer friendly services or improvements to drivers. What did we accomplish? We proved that it can happen. Competing trade associations can cooperate and aftermarket groups can sit down with OEMs and have a conversation. We have some distance to travel as years of distrust often led to strongly held beliefs from both camps that sound, from my perspective, a little paranoid. While some folks in the OEM camp don’t want to play with the aftermarket, many do. The enlightened people and companies that recognize that nearly 80 percent of after warranty repair happens in an independent shop also recognize that independents are going to recommend cars made by companies that do not create impediments to getting customers’ cars repaired. In mainstream vehicles, the companies that have done the best retaining customers from vehicle to vehicle have done so by making the repair of their vehicles drama free. Luxury brands are growing in sales. While many of these vehicles have been niche with dealers having a larger percentage of the repair pie compared to other makes, I think that these manufacturers are going to have to look closely at their business model to continue to compete with the mainstream brands that are making better luxury cars every model year. The aftermarket also has a role in this and I think that the leaders present at this meeting recognize that a little good will can go a long way. We also have to do our best to explain our situation and show that the development of methods for the aftermarket to utilize these vehicle technologies will actually be adopted. Back in 2002 OEMs built websites that were going to keep all of us who repair cars in business and 13 years later there are technicians in my classes that still are not aware that they exist. The other side of that coin is that the aftermarket did a very good job of licensing and organizing that information into their various products. By and large that is the desire with telematics; make the data available so that it can be used to create useful products that vehicle owners want, more effective means of predicting service needs, diagnosing and repairing vehicles. AftermarketBusiness.com ES590812_AMB0415_008.pgs 03.26.2015 20:04 ADV ENTER THE Make It SWEEPSTAKES 5 GRAND PRIZE WINNERS! Receive a TRIP FOR TWO to the Bob Bondurant® School of High Performance Driving! 5 FIRST PLACE WINNERS FIRST 2,500 ENTRIES Get a GoPro® HERO4 Camera Get a “Make It QWIK™” TPMS Hat ENTER FOR A CHANCE TO WIN www.MakeItQWIK.com • 3 sensors provide 94% coverage • Fully assembled, ready for installation • Available in both rubber and metal valve stems • Can be ID-Cloned or OE-Relearned, technician’s choice DOMESTIC & ASIAN EUROPEAN ASIAN 314.9/315 MHz 433 MHz 315 MHz • Works with all major TPMS tools ENTER APRIL 1 - JUNE 30, 2015. NO PURCHASE NECESSARY TO ENTER OR WIN. A purchase will not increase your chance of winning. Open to legal residents of the 50 United States and D.C., age 18 or older. Promotion is void where prohibited or restricted by applicable law, and all applicable federal, state and local laws and regulations apply. Promotion begins at 12:00 AM ET on 04/01/15 and ends at 11:59 PM ET on 06/30/15. Sponsor: STANDARD MOTOR PRODUCTS, INC. magenta cyan yellow black ES587241_AMB0415_009_FP.pgs 03.21.2015 01:12 ADV COMMUNITY MARK SMITH Q&A INDEPENDENT THINKING President, Wholesale Auto Parts [email protected] SALE HAS AIR OF UNCERTAINTY Purchase of Uni-Select raises many questions rogram groups are merging, independent warehouses are buying each other out, and now manufacturers’ investment groups are buying warehouses, distribution centers and company-owned stores. I think that Uni-Select USA selling its assets for a mere $340 million was way too low, but maybe that’s all they were worth. Icahn Enterprises LP, the buyer of Uni-Select USA, owns an interest in Federal-Mogul Holdings, which will be operated independently “at arms length” in regards to the operations of Uni-Select USA after the transaction is completed. This is from Icahn Enterprises’ press release about the merger: “Carl C. Icahn, Chairman of Icahn Enterprises, commented, ‘Icahn Enterprises is constantly looking for companies to own or control (i.e., own over 50%). The assets of the companies we control currently total over $20 billion, up from approximately $1 billion at the beginning of 2000. This does not include the value of the securities held by the funds in our Investment segment, which total over $15 billion. With the advent of the bull market over the last five years, it has become increasingly difficult to find companies that we believe to be undervalued and with growth potential. That is why we were happy when we learned that the United States segment of Uni-Select was available.’” Taking the above at face value, Icahn Enterprises appears to have a staggering $35 billion in buying power. The quote above also implies that Uni-Select USA was undervalued with P 10 APRIL 2015 magenta cyan yellow black growth potential. Let’s look at some raw numbers and draw some conclusions. Uni-Select USA has 39 distribution centers and 240 company-owned stores in the U.S. and has a program group network of more than 2,000 independent jobbers. 39+240+2,000 = 2,279 potential outlets. 340 million divided by 2,279 distribution outlets equals $149,188.24 per location average investment. So, lets assume that each distribution center has a meager inventory of $3 million. That equals $117 million of inventory at WD pricing. 240 company owned stores at a lower than expected inventory totaling $250K each equals $60 million in inventory assets. 2,000 program jobbers buying an average of $10k per month, yields $20 million in jobber sales per month. This produces a minimum of $177 million in inventory assets and a minimum of $20 million in cash flow monthly. Not to mention the property and fixtures Uni-Select USA has title of, which has got to take care of a large chunk of the remaining $143 million left unjustified. Yes, this is a good deal for Icahn Enterprises. Having had experience with UniSelect as a jobber, experience with all things Federal-Mogul, and a general student/observer of our industry, the acquisition leads me to deduce a few things, and offer up a few general questions. The price tag makes me think Uni-Select did not necessarily want to sell, but needed to sell. The most likely buyer is always the largest debtor as well. And finally, with buying power of $35 billion, why not buy AutoZone, Advance Auto Parts and What is the real motive? It’s very unclear. Carl Icahn is said to be a Wall Street guru and he knows how to turn a profit for his investors. others? Why stop there? What is the real motive? It’s very unclear. Icahn is said to be a Wall Street guru and he knows how to turn a profit for his investors. He’s involved with so many different companies as an owner, major shareholder, or as a member of the board of directors, it’s mind-boggling. The man wears a lot of hats and he has a vast knowledge of things. He is surrounded by a group of experts, and has incredible wealth and financial power. So, why is he buying an automotive distribution group formerly owned by a Canadian company? I see transformation on the horizon. Do something great Carl. We are all watching and possibly willing to follow when you show us what you’re up to. AftermarketBusiness.com ES590805_AMB0415_010.pgs 03.26.2015 20:03 ADV COMMUNITY GLOBAL OVERVIEW [email protected] AASA/OAC A&Q COVERING ALL THE WORLD Trade agreements expand suppliers’ global reach he motor vehicle supplier industry is truly global in reach today. Suppliers have global manufacturing footprints, exporting and importing products and components to serve customer needs around the world. Automotive suppliers export $62 billion in automotive parts to Pacific countries, including South America and Asia. Automakers export 2 million vehicles a year from the U.S, at an additional value of more than $51 billion – and nearly 70 percent of a vehicle’s value today is made by suppliers. International trade agreements are vital to opening new markets for North American suppliers and maintaining a level playing field for trading partners. The Motor & Equipment Manufacturers Association (MEMA) is the nation’s oldest and largest association representing the North American motor vehicle parts supplier industry and has a long history of advocacy for opening global markets to suppliers. Two high-profile trade agreements are currently in negotiations: the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP). The TPP is a regional free trade agreement that comprises the United States, Australia, Brunei, Canada, Chile, Japan, T Scan this QR Code to read more articles like this. Or visit SearchAutoParts. com/Trending GET A FREE SCAN TOOL APP AT: www.scanlife.com Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Membership among Asia-Pacific nations is expected to grow after the agreement is finalized and interested counties agree to meet TPP’s principles. T-TIP negotiations seek greater economic integration between the U.S. and the European Union (EU), the largest economic relationship in the world. The TPP seeks to set a model “high standard” 21st Century trade agreement that addresses greater supply chain integration, improved protections for intellectual property rights and regulatory coherence. The strategically important Asia-Pacific region, representing roughly half of world trade and 60 percent of world gross domestic product, offers significant growth opportunities for aftermarket suppliers in a critical market. The T-TIP agreement also opens opportunities for aftermarket suppliers. The top priority of this agreement is regulatory cooperation. Failure to achieve this cooperation will severely limit its economic potential for the vehicle industry. According to EU Impact Assessment Reports on T-TIP, current auto non-tariff barriers (NTBs) between the U.S. and EU are equivalent to an ad valorem tariff of 26 percent. In addition, the reports project eliminating tariffs and 25 percent of existing U.S. and EU NTBs would increase EU vehicle and parts exports to the U.S. by 149 percent and increase U.S. vehicle and parts exports to the EU by 347 percent. Both trade agreements have gone through several rounds of high-level meetings. The TPP agreement is expected to be completed in 2015, but the timing of T-TIP’s completion is less The Asia-Pacific region represents roughly half of world trade and 60 percent of world gross domestic product. certain. However, Congress must pass Trade Promotion Authority (TPA) legislation before these treaties are completed. Also known as “fast track,” TPA allows the president to submit trade agreements to Congress for a vote without amendments. Congressional Republicans and the Obama administration agree on the need for TPA, but congressional Democrats oppose TPA without specific conditions. MEMA is working cooperatively with industry groups and coalitions to influence the negotiations. The association also consults regularly with the U.S. Trade Representative (USTR), Congress and other stakeholders to ensure the interests of motor vehicle parts suppliers are served in the final agreements. For details about the Automotive Aftermarket Suppliers Association (AASA) and its global outreach services, visit www.aftermarketsuppliers. org. AASA is the light vehicle aftermarket division of MEMA. SEARC HAUTO PARTS .C O M 11 magenta cyan yellow black ES590898_AMB0415_011.pgs 03.26.2015 20:08 ADV WASHINGTON INSIDER COMMUNITY STEPHEN Q&ABARLAS Washington Correspondent [email protected] ANXIETY UP AS EPA MOVES ON OZONE Changes also could affect availability of some gas epresentatives of auto emission system manufacturers met with officials of the Environmental Protection Agency (EPA) on Feb. 13 concerning the agency’s December proposed rule tightening ozone air emission standards. Any lowering of allowable emission levels would force cities and counties that suddenly fall into the ozone “nonattainment” category because of tighter restrictions on hydrocarbon and nitrogen oxide emissions to improve inspection and maintenance programs for autos. Transportation sources are the major causes of ground-level ozone, otherwise known as smog. Changes in the standard, last tightened in 2008, could also affect the availability of some types of reformulated gasoline. The top executives from the Manufacturers of Emission Controls Association (MECA) and the Advanced Engine Systems Institute (AESI), Joe Kubsh and Chris Miller, respectively, were at the meeting, with some company reps joining the meeting via teleconference. Those participants included Greg Garr from Umicore, David Cetola, from Johnson Matthey Catalysts and Paul Busch from NGK Automotive Ceramics. Kubsh says the meeting on ozone came at the end of a three-day meeting on other topics with EPA officials at Research Triangle Park in North Carolina. “We were just trying to understand where there are opportunities in the mobile sources sector to do more,” he says. “That would be in the areas of off-road and heavy-duty truck diesel engines.” Kubsh points out that the final rule the EPA issued in 2014 on Tier 3 emission standards already addresses direct-from-tailpipe emissions of nitro- R 12 APRIL 2015 magenta cyan yellow black gen oxides (NOx), volatile organic compounds (VOC), direct particulate matter (PM2.5), carbon monoxide (CO) and air toxics. Tighter ozone standards would target many of those same pollutants, and force cities to adopt local policies. New standards would not directly affect auto manufacturers. The meeting with the emissions executives followed three meetings the EPA held around the country to get public input into the proposed rule, which would lower the current primary standard for ozone from .075 parts per million to between .065 to .070 ppm. The primary standard is meant to prevent lung disease and asthma. There is a secondary standard, too, which aims to mitigate any environmental damage to plants and animals. The EPA wants to revise the secondary standard, now the same as the primary standard, to a complicated formula based on something called a W126 index values. The EPA has not decided on exact numbers for either standard yet. At the hearings in Washington, Giedrius Ambrozaitis, director of environmental affairs at the Alliance of Automobile Manufacturers, said, “Given that dramatic reductions in ozone and improvements to air quality will continue to occur, new EPA regulations to further lower the ozone standard are not necessary to improve air quality.” Unhealthy ozone levels are a problem across the United States, with nearly 100 cities exceeding the EPA National Ambient Air Quality Standard. Nonattainment geographic areas are classified in five iterations, from marginal to severe. Those rated moderate and above must establish I/M programs. The EPA forces the most polluted to adopt “enhanced” I/M programs, of which there are four basic “model programs.” Once the EPA designates which Nearly 100 U.S. cities exceed the EPA National Ambient Air Quality Standard. of the four, the locality has some leeway in terms of the means for achieving the specified results. Estimates from various sources are that a more protective ozone standard such as what the EPA is considering would result in non-attainment areas somewhere between 200-350, a doubling or tripling of the current non-attainment areas. As required by the Clean Air Act, EPA would make attainment/nonattainment designations for any revised standards by October 2017; those designations likely would be based on 20142016 air quality data. States with nonattainment areas would have until 2020 to late 2037 to meet the proposed health standard, with attainment dates varying based on the ozone level in the area. Republicans in Congress will be expected to react negatively to any final standard between .065 to .070 ppm. Top GOP members on the Senate Environment and Public Works Committee sent a letter to the EPA in February questioning the validity of the agency’s cost-benefit analysis accompanying the proposed rule. AftermarketBusiness.com ES590808_AMB0415_012.pgs 03.26.2015 20:03 ADV STAY ON TOP OF INDUSTRY DEVELOPMENTS Sign up today for FREE SUBSCRIPTIONS to TRENDING Service Repair E-News & Alerts Certified Technician E-News & Alerts Aftermarket Business E-Zine DISTRIBUTION NEWS, NOTES AND HAPPENINGS AFTERMARKETBUSINESS.COM/SUBSCRIBE Photo: Port of Long Beach COVERSTORY BY JAMES E. GUYETTE | NEWS CORRESPONDENT importers and exporters that rely on West Coast maritime facilities could experience continued shipping delays going into the summer months in the wake of a slowdown by dockworkers at 29 American seaports. A tentative settlement of the labor dispute has been reached between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), yet cargo backlogs are expected to present continued logistical challenges as the ports set sail to catch up. At one point during the slowdown there were 36 vessels sitting idle at anchor in the Los Angeles/Long Beach harbor – a figure that is four times the usual waiting-time rate. The impacted docks stretching from California to Washington handle 40 percent of all international imports arriving in the U.S. “It is important to note that the slowdown at West Coast ports in the U.S. affects both imports and exports,” said Steve Handschuh, president and CEO of the Motor & Equipment Manufacturers Association (MEMA). He points out that the members of MEMA and its divisions – the Automotive Aftermarket Suppliers Association (AASA), the Heavy Duty Manufacturers Association (HDMA), the Motor & Equipment Remanufacturers Association (MERA) and the Original Equipment Suppliers Association (OESA) – have long maintained global manufacturing footprints that depend on reliable and timely cargo flows. Industry suppliers export $62 billion in automotive parts to Pacific countries, including South America and Asia, and import $74 billion in components from the region. Automakers export 2 million vehicles a year from the U.S. at an additional value of more than $51 billion, according to Handschuh, who SEARC HAUTO PARTS .C O M 13 magenta cyan yellow black ES590866_AMB0415_013.pgs 03.26.2015 20:07 ADV trending cover story “For one oF MeMA’s division MeMbers this equAtes to An AdditionAl $200,000 per Month. For Another, this hAs AlreAdy cost theM Millions oF dollArs.” Steve HandScHuH, preSident and ceO Of tHe MOtOr & equipMent ManufacturerS aSSOciatiOn was interviewed on CNBC before the tentative settlement. “It’s playing Russian roulette with the U.S. economy,” he warned the international television network’s viewers. “It’s already costing our industry billions of dollars. Trucks are waiting for days to pick up one container.” Several industry organizations were mobilizing letter-writing campaigns among their memberships to insist that the federal government put pressure on the ILWU and PMA to reach an accord. “It’s time for the parties to come together and obtain a resolution of this matter so our distributors are not stressed by the availability of parts,” said Rodney Pierini, president and CEO of the California Automotive Wholesalers’ Association, which represents aftermarket manufacturers, jobbers, warehouse distributors and retailers in California, Nevada and Arizona. Stranded shipments Vendors and customers alike have been upended by the impact. “There are relationships that are being stressed by the slowdown. They’re concerned about the availability of parts coming in from other parts of the world and shipping parts to other parts of the world,” said Pierini, adding that “they’re looking at alternative ways to get products in, but it’s expensive.” Official approval of the pact was still pending as Aftermarket Business World went to press. “MEMA continues to monitor this situation and urges quick ratification of the final agreement,” Handschuh said, adding that it could be as late as August until the pace of the ports becomes ship-shape. Union ratification involves contract details being voted on by a membership caucus, followed by a secret-ballot election at the individual locals. This is expected to be completed in April. During the height of the slowdown shipping cost overruns of up to 10 percent were hitting businesses that usually route through the LA/Long Beach 14 april 2015 magenta cyan yellow black wharves as aircraft were utilized or detours arranged through Vancouver, B.C., Canada. “For one of MEMA divisions’ members this equates to an additional $200,000 per month. For another, this has already cost them millions of dollars,” Handschuh said. “One company reports that they have shipments stranded on seven vessels that cannot unload at the port, straining inventory reserves. Another company reports that their in-transit inventory has more than doubled to more than $20 million since November and now represents nearly 20 percent of their total,” he noted. “Consumers are not feeling an immediate impact because suppliers have been preparing contingencies for close to 12 months in anticipation of the July 1, 2014 contract expiration,” said Handschuh. “Companies that kept two or three weeks of inventory in transit are now carrying four, five or six weeks of inventory. Feeling the squeeze The long lead-in as the dockside dispute loomed allowed logistical providers time to contemplate other transportation avenues, according to UPS spokesman Matthew O’Connor. “We’ve been working on this for quite a while and helping customers with alternative plans,” he said. “There are a couple of different tactics being used, and air would be one of them. We’re helping our customers to keep their parts moving.” Planes, trains, trucks and ships are all components of a multimodal approach being implemented within the industry. “We sit down with each company in the aftermarket, and then you figure out the solutions,” said O’Connor. The various factors to consider regarding a given load include the desired timing for initiating the shipment and its destination, time-in-transit and arrival goals, port selection, and cost concerns. “The biggest challenge is for the companies that already put products on a ship – they’re stuck,” he said as the slowdown remained in play. “If their shipment hasn’t left they can make other arrangements” to work around a problem at a particular seaport and remedy any backlogs. “Several months will be required to recover from the damage caused by this situation,” said Handschuh. “The slowdown has already caused millions of dollars in added costs due to expedited and freight alternatives, and has reduced U.S. exports – which will have a direct effect on the U.S. economy. The ability to import and export product is essential to a global economy and, therefore, to motor vehicle suppliers.” Local economies have also been feeling the squeeze: The Bellefontaine Examiner in Logan County, Ohio was providing detailed coverage of production reductions due to critical assembly line shortages at six Honda factories in Ohio, Indiana and Canada. “While around 80 percent of parts come from 700 North American suppliers, Honda does rely on imports for critical electronics and some transmission parts,” the newspaper reported, advising concerned readers to “check the automaker’s internal communication systems for the status of their plants or departments.” The tentative five-year contract settlement comes as welcome news; the deal was reached after President Barack Obama dispatched U.S. Secretary of Labor Tom Perez and Scot Beckenbaugh of the Federal Mediation and Conciliation Service. Details of the pact were not disclosed. “After more than nine months of negotiations, we are pleased to have reached an agreement that is good for workers and for the industry,” said PMA President James McKenna and ILWU President Bob McEllrath in a joint statement. “We are also pleased that our ports can now resume full operations.” • AftermarketBusiness.com ES590865_AMB0415_014.pgs 03.26.2015 20:07 ADV TRENDING VENDORS THE REPLACEMENT MARKET PRESERVING THE NEW CAR LOOK QA PAINT PROTECTION FILMS BRING SALES GAINS VENDOR NEWSMAKER MARK GERSHENSON BY JAMES E. GUYETTE | NEWS CORRESPONDENT hielding vehicle finishes against stones, gravel, sand, scratches, bug residue, bird droppings, acid rain, winter road salt and other flying objects, paint protection films are clearly stretching out to become a lucrative aftermarket sales option. TRENDS & MARKET ANALYSIS Commonly called PPF and also known as “clear bras,” the product is sometimes still referred to as “helicopter tape” based on its origins during the Vietnam War when the U.S. military asked 3M to develop a protective coating for whirling chopper blades that were stirring up damaging sand particles. Among the early civilian adopters were racing teams seeking to maintain the gleam of their colorful paint schemes under the punishment of debris-strewn track surfaces. Over the years PPF has since become thinner, sturdier, easier to apply and less likely to yellow, attracting the attention of numerous manufactur- Scan this QR Code to read more articles like this. Or visit Search AutoParts. com/Trending GET A FREE SCAN TOOL APP AT: wwwscanlife.com Global LLumar brand management director, Eastman Chemical ers along with assorted mergers and acquisitions. “There’s been an evolution in the product over the years. It’s a category that is experiencing rapid growth,” says Jack Mundy, vice president of the International Window Film Association (IWFA), which also has members covering the PPF segment. He estimates the value of the U.S. PPF marketplace at $150 million and $15 million in Canada. “Painted surfaces are costing more, so people are protecting their investment,” Mundy explains. “It started as high-end, but now it’s across the spectrum of vehicles.” Much of the manufacturer marketing is targeted at new-car dealerships offering it as an add-on at signing. “Some are doing it themselves, and some have subcontracting relationships with independent installers,” says Mundy, president of Ener-Gard, a North American distributor based in Ontario, Canada. About 5 percent of the new cars rolling out of dealer showrooms are being wrapped with PPF, according to Casey Flores, editor of Window Film Magazine. “People are becoming more aware of the product,” he points out, “and I’m seeing it becoming more mainstream – it’s catching on quite fast.” Awareness and education In January Madico Window Films rolled out a new Invisi-Film line for auto body applications aimed at “giving owners peace of mind that their vehicle will WHAT IS THE EXTENT OF YOUR DISTRIBUTOR/ INSTALLER NETWORK? LLumar Paint Protection Film has a wide distribution network domestically and internationally with over 4,000 shops selling LLumar products. Q: What types of installers are you seeking? A: LLumar Paint Protection Film is available through aftermarket shops; car dealerships offer PPF to help protect new cars while adding to their dealership profits; OEM is increasingly popular in international markets. Q: Which segments are the most common among your installers? A: It varies widely depending upon location, but anyone who cares about car appearance can benefit from paint protection film. Q: What are the qualifications for a shop to become a certified installer? A: LLumar offers installation training to its direct customers. We look for installation quality, skills and a positive consumer experience. We work with dealers who will best serve market needs. Q: What are the challenges/solutions for marketing paint protection films? A: Awareness, education and availability are the biggest challenges. SEARC HAUTO PARTS .C O M 15 magenta cyan yellow black ES590855_AMB0415_015.pgs 03.26.2015 20:06 ADV TRENDING VENDOR MARKET TRENDS ABOUT 5 PERCENT OF THE NEW CARS ROLLING OUT OF DEALER SHOWROOMS ARE BEING WRAPPED WITH PAINT PROTECTION FILMS. continue looking great no matter what conditions they’re driving in,” says Jeffrey R. Plummer, senior vice president of sales and marketing. “This is clearly a growing segment, and one that allows our installing dealers a means of increasing their business.” “Invisi-Film can also be used on RVs, ATVs, jet skis, boats, motorcycles, high-performance vehicles, and tractors and commercial vehicles such as dump trucks and end-loaders,” notes Madico marketing specialist Lauren Messing. “Additional uses include truck bed rails, door frame edges and thresholds, wiper blade landing areas, around wheel wells, door handles and locks, roof areas under utility racks and more,” she says. “It works with computerized plotters for a custom fit.” Installation pricing varies according to regional markets and the extent of coverage sought for a particular vehicle. Some customers opt for overall protection – others are content with covering just the lower panels more prone to come in contact with paint-threatening objects arising from the streets. “This is a film that can completely complement or transform the look of a vehicle while protecting the vehicle’s finish from rocks, gravel, salt and other road debris,” says CEO Ryan Pape at XPEL. Its STEALTH film “features a smooth satin-texture that blends seamlessly with OEM matte paint finishes. Alternatively, the film can be applied to glossy-painted surfaces to give the vehicle a matte appearance in a reversible manner, without requiring repainting,” according to the company. XPEL’s TRACWRAP is marketed as an affordable temporary PPF that is self-installed for one-time use to protect RVs and their tow-behind vehicles. A larger size is available for bigger motor coaches. “Awareness and education play a big role in consumer appreciation,” according to spokeswoman Maureen Blazevic at the Eastman Chemical Co. “Technology continually evolves, and the new LLumar self-healing paint protection film takes the consumer 16 APRIL 2015 magenta cyan yellow black benefits to a new level.” The firm has more than 4,000 shops selling its lines worldwide. In December Eastman purchased the SunTek brand, which is retaining its identity. Blazevic says SunTek “is valued in the market as a high quality product” that attracts “significant loyalty among installers.” “With the rising cost of cars and trucks, people want to protect their vehicles and keep them looking new to protect their investment and for future re-sale,” says Ziebart President Daniel C. Baker as he describes the company’s ongoing Z-Shield PPF innovations. “We have field-tested this product in the harsh winter conditions of Minnesota and in the burning heat of Middle Eastern deserts, and it has exceeded expectations,” Baker reports. “We even conducted customer focus groups to make certain this new film is what customers wanted and is modestly priced based on a customer’s protection needs.” A controlled environment “The word is spreading that this is available and that it works – it’s not a gimmick,” says Block A Chip owner Albert Helcberger. “The customer base has been expanding as the word gets out.” And even though he has an attractive shop in Mentor, Ohio, much of his sales involve mobile installations as he travels across the northeastern corner of the state in a Chevrolet HHR wrapped with eye-catching signage. “You need a controlled environment, we can’t just show up and do it in someone’s driveway,” Helcberger points out, emphasizing the need for a clean indoor work site. “In the wintertime you have to have the proper heat.” Most customers are served via an array of car dealership accounts that he has developed. “I educate the dealers on how we operate, and the places we work with are very good about accommodating us.” The restoration/classic car market is another aspect of Block A Chip’s business, and Helcberger advises Q: About how much can an installer expect a customer to pay to have this applied? A: Installation cost may start at around $100 and go up from there. Cost for LLumar Paint Protection Film installation varies widely contingent upon car coverage and exterior intricacy. Q: What demographics are you trying to reach? A: LLumar Paint Protection Film is for anyone who cares about vehicle appearance. A 2013 study showed that the average car is on the road for over 11 years. LLumar Paint Protection Film is a great way to preserve car appearance, providing protection from the elements, road debris, insect stains, even acid rain. Q: Does this sell better in particular areas of the country? A: LLumar Paint Protection Film traditionally has been most popular throughout the Rocky Mountains and in places where salt use is common, but it really provides benefits for consumers no matter where they live. Q: How do you assess the current domestic and international scope and future potential of PPF? A: The paint protection film category continues to grow as awareness and education about the benefits of it expands. Consumers investing in expensive vehicles drive the desire to protect them. Q: Following your purchase of SunTek, will you continue to offer that line? A: The SunTek brand is valued in the market as a high quality product, and it has significant loyalty among installers. Eastman will continue offering the SunTek brand for both PPF and window film. “those types of vehicles require the trust and knowledge of the owner along with more training and more skill. That requires another level of expertise – you can’t just call up a template on a computer.” AftermarketBusiness.com ES590854_AMB0415_016.pgs 03.26.2015 20:06 ADV READ MORE ABOUT AFTERMARKET TRENDS Starting out as a graphic artist for racers and offering high-end detailing, Helcberger became interested in PPF after he bought a classic Corvette that he wanted to protect. “I thought, ‘What a great concept!’ So I gave it a shot. Not many people knew about the product and there were no professional installers doing this. It was not pretty at the beginning.” A four-day installation class at 3M provided a valued education to augment “hands-on and doing it over and over again.” Eventually the practice jobs culminated in establishing Block A Chip: “I did my parents’ car and it evolved into a business,” Helcberger recounts. A competitive advantage “Using the highest quality urethane film is only as good as the installation, which is why installation quality is so critical in our business,” concurs Skip Vachon, owner of Protective Film Technologies (PFT), an exclusively magenta cyan yellow black mobile application service in the Washington, D.C. area. “Stretch marks, wrinkles, scarring, lifting and dimples all determine whether or not the film is visible on a vehicle, especially on darker colored paint,” Vachon cautions, citing the importance of being properly trained. “There are really no entry barriers to this business – the only barrier is your skill level.” Plotter equipment is utilized to ensure the correct cuts, although some applications require custom handiwork. “You order film asneeded; it’s simple.” Vachon, echoing Helcberger, was a detailer who became hands-on with PPF 13 years ago after purchasing an “absolutely pristine” classic BMW and hearing “horror stories” about botched jobs. “The quality of the films was terrible compared to what we have now.” About 98 percent of Vachon’s customers are people who have bought new cars. But he is selective about enlisting car dealers as a source of accounts. “Every dealer has differing preferences. Everything has to be done right now, and then you don’t get paid for a month.” Among other drawbacks, sometimes the vehicle to be worked on is not even present on the lot for the scheduled appointment. “The majority of my work is going to individual homes,” says Vachon, who conducts customer interviews in advance. “A lot of my clients live in very nice homes, so it’s usually a clean environment” with a spacious and uncluttered garage. “It’s a huge competitive advantage to be mobile,” he says. “Since I started the awareness of the product has gone up a lot, and sales have grown tremendously.” There is one key wrinkle, however, and that comes when attempting to expand the operation by taking on and training additional technicians. “It’s so lucrative,” Vachon laments, “that they’ll go off on their own and start their own business.” ES590853_AMB0415_017.pgs 03.26.2015 20:06 ADV TRENDING INTERNATIONAL MARKETS VENDORS TRAINING IS KEY TO FIRST SHOW QA INAUGURAL AUTOMECHANIKA CHICAGO SET TO KICK OFF INTERNATIONAL NEWSMAKER IOANA MAZARE BY BRUCE ADAMS | MANAGING EDITOR ore than 400 exhibiting companies will fill the McCormick Place West expo floor for the inaugural Automechanika Chicago April 24-26. Positioned to be the largest tradeshow and training event for shop owners and technicians, the event is dedicated to high-end training and showcasing the latest tools, equipment and products in the market. TRENDS & MARKET ANALYSIS Classes will cover management, service and collision repair, and general repair topics. More than 2,000 scholarships have been offered since November to service and collision repair techs to attend the training for free. More than 100 training sessions presented by more than 50 instructors will cover both service and collision repair topics. Positioned to be the largest U.S. tradeshow and training event for the automotive aftermarket industry, Automechanika Chicago continues its industry support through its scholarship opportunities found at the show. More than 2,000 scholarships will be awarded for the training program Automechanika presents Motor Age Training Live. As an additional pledge to the automotive aftermarket industry, Automechanika Chicago will supply an ASE study guide to each testing registrant that signs up for the event. “Educating the market is an important focus of Automechanika Chicago, which is why we are bringing the 18 APRIL 2015 magenta cyan yellow black Automotive marketing manager at UPS highest level of trainers and presenters to our program, said Dennis Smith, President of Messe Frankfurt Inc. “We will be providing an exceptional educational experience.” In addition, the Automotive Parts Remanufacturers Association (APRA) will be conducting training at Automechanika Chicago. APRA will hold complimentary educational seminars April 24 and 25 next to the APRA booth 2659/2660. The seminar package, “What’s Trending in Remanufacturing?” will include Mohammad Sammi, president and owner of Sammy’s Auto Electric Service. Sammi will give three 30-minute presentations on April 24 - “Trends in Design of the New Starters,” “What’s Up with New Alternators’ Design, Power, and their Features?” and “Alternator and Charging System to PCM Interface.” Some 2,000 scholarships will be awarded for the training program Automechanika presents Motor Age Training Live. On April 25, Robert German, engineer and senior project manager with Flight Systems Automotive Group, will present “Remanufacturer of Electronic Diesel Controls,” and “Remanufacturer of Diesel Fuel Systems” at the booth. APRA is developing other speakers and topics for the educational semi- DO COMPANIES CHANGE SHIPPING PLANS DUE TO THE WEST COAST PORT SLOWDOWN? Lo g i s ti c s ex p e r t I o a n a M a z a re is th e au to m o tive marketing manager at UPS, where she works with OEMs and aftermarket manufacturers, distributors and retailers. She recently answered a series of questions for Aftermarket Business World relating to the West Coast port slowdown. A: Yes. UPS has been working with our customers since early 2014 to develop contingency plans in case the slowdown occurred and we’ve been putting those plans in action since delays began taking place. These contingency plans vary by customer, but typically use a combination of ocean, rail and truck transportation that balances inventory levels, fill rates and cost. In some cases, automotive companies are augmenting with air freight to meet consumer demand and maintain high levels of customer satisfaction. Automotive aftermarket businesses should carefully evaluate how ocean shipping delays are affecting, or may affect, their business. Sometimes the optimum solution involves looking at the situation beyond simply transporting products via ocean, air, rail or truck. Some of the criteria that UPS addresses with customers includes AftermarketBusiness.com ES596362_AMB0415_018.pgs 04.01.2015 22:03 ADV READ MORE ABOUT AFTERMARKET TRENDS POSITIONED TO BE THE LARGEST U.S. TRADESHOW AND TRAINING EVENT FOR THE AFTERMARKET INDUSTRY, AUTOMECHANIKA CHICAGO CONTINUES ITS INDUSTRY SUPPORT THROUGH ITS SCHOLARSHIP OPPORTUNITIES FOUND AT THE SHOW. the risk of lost sales, penalties from not meeting contractual agreements, the added cost of carrying more inventory, the cost of redirecting shipments that are already in transit, and the ability to source products from other vendors or production facilities. Q: Are you diverting ocean shipments from the West Coast ports to other destinations including Canada, Mexico and the Eastern U.S. ports? A: UPS is not recommending changing shipping routes through the U.S. West Coast ports for a variety of reasons. U.S. East Coast ports are at capacity and can cost twice as much to transport products through compared to the West Coast. Canada and Mexico offer some viable options but are not bolt-on solutions. Canada’s West Coast ports are experiencing volume-driven delays from congestion related to the U.S. West Coast port delays. Shipping into Mexico extends transit times and has inland transportation limitations. See more Q&A at AftermarketBusiness. com/IoanaMazare. nars. To register for the free APRA seminars, visit www.apra.org or e-mail [email protected]. Advanced registration to the tradeshow at Automechanika Chicago is free. The on-site fee is $50. Of course, there are other reasons other than training to take some time away from your shop and make it a long weekend in the Windy City. Specific to the event, city and show organizers have made it easy to get to and from partner hotels to McCormick Place and back. “Many years ago we opened dedicated bus lines. In addition to the surface streets, buses and cars coming into the building, we also have an incredible bus lane that is an express bus lane that runs basically parallel to the trains coming in from the city through a dedicated tunnel that’s only open when conventions are in town to make the drive from the downtown hotels to the cam- pus within five to seven minutes,” Don Welsh, president and CEO of Choose Chicago, said in a video interview. The loop will pick up attendees at partner hotels (check out the list at MotorAge.com/AMC hotels), and there will be transportation from the hotels to Navy Pier for an opening night party on April 24 from 5 to 7 p.m. The event at Navy Pier is open to all attendees and exhibitors, and includes drinks, appetizers and entertainment. Navy Pier also is one of several attractions Choose Chicago representatives highlighted as places not to miss after show hours or for your families coming along for the weekend. Darrell Baker, Choose Chicago’s vice president sales, trade shows, pointed out lists of attractions, including the free Millennium Park, Lincoln Park Zoo and Cloud Gate (the “Bean” where many people snap pictures), as well as Lurie Garden, the Skydeck Chicago in the Willis Tower, Lookingglass Theatres, Broadway in Chicago, Shedd Aquarium and Chicago White Sox, among many others. (Sorry, Cubs fans, they’re on the road that weekend.) For those driving into the city, there are various public transportation options, from L Trains, buses and taxis to the high-speed Metra commuter rail train connects outlying suburbs to downtown. ChooseChicago.com has links to places where you can park should your hotel not have parking and lots where you can pay ahead of time. In addition to entertainment and attractions, there are more places to eat each evening than can be listed, all fitting various price ranges. “We have over 3,000 restaurants and taverns and bars and entertainment facilities in the downtown core. In terms of the whole package, of course we have some of the greatest hotels in the whole world. We have five of the top 10 hotel brands in the whole world,” Welsh said. “You’re going to find a very, very dense, walkable downtown. Great shopping, great restaurants, great attractions, if people have time to take to the city in addition LIKE THIS ARTICLE? CHECK OUT RELATED CONTENT @ APRIL 24-26 PLAN YOUR VISIT SEE WHO IS DOING TRAINING COMMONLY ASKED QUESTIONS IT’S EASY TO DO BUSINESS IN CHICAGO REGISTER TODAY @ MotorAge.com/AMCregistration to being here for business purposes.” The Automechanika Brand as a whole continues to experience record exhibitor and visitor numbers, indicating that these trade shows are truly fulfilling the needs of the industry through this global business platform. The growth and satisfaction remains a trend throughout all the Automechanika shows worldwide, confirming a positive outlook for the future of the industry. Automechanika Chicago is produced jointly between Messe Frankfurt and UBM Advanstar Communications, the leading producer of U.S. tradeshows, and provider of integrated media solutions to the automotive aftermarket – daily reaching millions of service & collision repair professionals, technicians, original equipment and aftermarket manufacturers and distributors. Registration to the Automechanika Chicago tradeshow is free and a limited number of free training spots are available on a first come, first serve basis. To learn more, visit www.automechanikachicago.com. SEARC HAUTO PARTS .C O M 19 magenta cyan yellow black ES596361_AMB0415_019.pgs 04.01.2015 22:03 ADV TRENDING CUSTOMERS DEALERSHIPS NEW WIRELESS TOOL FOR TECHS QA FORD ROLLS OUT TABLET COMPUTERS FOR SERVICE LANE VENDOR NEWSMAKER MIKE MARTINEZ BY BRIAN ALBRIGHT | CONTRIBUTING EDITOR ervice advisors at Ford dealerships will soon be armed with a new tool: a wireless tablet computer and Web-based application that the company says will improve the intake and inspection process. The tablets are part of the next phase of FordÕs SMART Technology (SMARTT) program, which was launched in 2014. In the first phase, Ford added SMARTT Appointments that let customers use an online tool to schedule service appointments at Ford and Lincoln service centers. In the first year, online appointment volumes tripled, according to the company. TRENDS & MARKET ANALYSIS The next phase of the program is the SMARTT Mobile Write-Up solution, which will provide service advisors with tablet computers. Ford is also launching SMARTT Inspect, which allows technicians and parts department personnel to access the data from the tablet application to more efficiently fulfill service orders. The new applications are currently available for dealers Scan this QR Code to read more articles like this. Or visit SearchAutoParts. com/Trending GET A FREE SCAN TOOL APP AT: www.scanlife.com 20 APRIL 2015 magenta cyan yellow black Chief Marketing Officer, DMEautomotive using the CDK Global dealer management system. A Reynolds & Reynolds deployment of the mobile application will be announced later. ÒToday, the write-up experience typically occurs at a kiosk or desk,Ó says David Ziegler, Ford customer service division technology and innovation manager. ÒThis cuts the cord and allows the advisors to work with the customer at the vehicle on their terms, and it provides a wealth of information so that they can complete the entire write-up.Ó There are a number of mobile tablet solutions for dealership service available, including modules from most of the major dealer management system providers. A company called MOC1 Solutions offers a Wireless Service Advisor (WSA) software solution, for example. In 2012, Chrysler launched the Mopar wiADVISOR tablet solution for the service lane, which included a device to plug the tablet into the vehicleÕs diagnostic port. With the Ford Mobile Write-Up solution, advisors can perform write-ups at the vehicle. It includes a menu of common service requests, along with vehicle history, open recall notices, and a pricing menu. According to Ziegler, the system should make vehicle inspections and walk-arounds more efficient. The tablets can be used to scan VIN numbers, take photos of repair items, and attach notes and customer comments to the service order. The SMARTT Inspect system then sends that information to the service department. Technicians can access the data, perform a thorough vehicle WHAT IS THE COST OF THESE UNADDRESSED OVERFLOW OR AFTERHOURS CALLS? Automotive mar keting firm DMEautomotive has released an analysis of overflow and after-hours service calls at 172 dealerships that found service departments were missing out on significant customer opportunities by mishandling these calls. Mike Martinez, chief marketing officer at DMEautomotive, spoke with Aftermarket Business World about the findings. A: First of all there is a straightforward loss of revenue when these calls are not answered. One out of two of those callers will go book service somewhere else. The second issue that 70 percent of these calls are from what we call swing loyalists, customers that can potentially be turned into loyal customers and drive a disproportionate amount of profitability. Q: How are service departments mishandling these calls? A: The customer calls the dealership after hours and either gets a message that the dealer is closed, or they go into a generic voicemail system, which never generates a response. It’s a dead end. Or they’re calling in during business hours and the call goes unanswered because the staff is busy. Dealers need a way of handling these overflow and after-hours calls. AftermarketBusiness.com ES590886_AMB0415_020.pgs 03.26.2015 20:08 ADV THE SMARTT INSPECT TOOL HELPS STREAMLINE COMMUNICATION AMONG THE ADVISORS, THE TECHNICIANS AND THE PARTS DEPARTMENT. Q: Are there best practices you’ve seen at dealers that are doing a good job of handling these calls? A: The first best practice is to simply have an after-hours and overflow call service in place so that every single one of those phone calls is answered and handled, even if it’s by a call center that isn’t at the store. You can have a team behind you that only costs you money when your own team can take phone calls, and they make sure 100 percent of those calls is handled 100 percent of the time. Beyond that, you want to have good call monitoring and recording available so that as calls come in, you can spot check how your employees are handling them. You want to respond to calls and log them into the customer relationship management or dealer management system. inspection, and input suggestions for necessary additional services. The inspection results are then available to the service advisor via the tablet to share with the vehicle owner. The SMARTT Inspect tool helps streamline communication among the advisors, the technicians and the parts department. ÒIf the technician finds anything during the inspection, that is automatically sent to the advisors and the parts department,Ó Ziegler says. ÒThe power of this is that it integrates with the dealer system pricing, so you can show labor and parts, availability of parts, and send a quote to the advisors immediately. If you do that manually, it takes 20 minutes for the technician. ItÕs much faster electronically.Ó According to Ziegler, the applications are Web-based. ÒThereÕs a URL,Ó Ziegler says. ÒIt is integrated with their DMS, and all they need is a wireless infrastructure. Dealers can use Apple iOS devices or Microsoft Surface devices for the tablets.Ó Ford has piloted the applications, along with the installation and training processes for the dealers. ÒWe believe a key component of this is in the implementation and training,Ó Ziegler says. ÒThe people who go on site to install the solution are Ford certified, and we have a sustainment program that is part of the process. We know this is a big cultural change. WeÕre asking the employees to do things very differently.Ó Ease of use is a key benefit of the solution. ÒWe can take someone who has never written service before, and within 30 minutes have them writing service orders using the tablets,Ó Ziegler says. ÒSystems weÕve tried in the past have been too complicated, in some cases. During the pilots, we heard from dealerships that they could easily cross-train other people at the dealership to write service and they quickly adapted to the system.Ó The mobile solution also takes data points that were previously available on different screens and consolidates them on a single screen to improve efficiency. While Ziegler couldnÕt share specific results, he said that at the pilot dealerships there was an improvement in selling more service jobs with the solution in place. Ford will deploy the solution on a voluntary basis initially. The company will evaluate the dealers to ensure they have the required technology infrastructure prior to implementation. If the hardware or infrastructure needs updated, it could take 30 to 60 days before full deployment. Once that process is completed, there is remote, Web-based training available, along with a week-long onsite training program to use the tools. The dealers receive follow-up visits from Ford staff over the next 12 months to ensure the solution is working properly. ÒWeÕve been talking about the program for a year, and we have a lot of dealers that are anxious to get this technology,Ó Ziegler say. ÒAt this point it is voluntary, but as we ramp up there isnÕt any reason why we wouldnÕt expand it across the dealer base. SEARC HAUTO PARTS .C O M 21 magenta cyan yellow black ES590876_AMB0415_021.pgs 03.26.2015 20:07 ADV TRENDING THE EMERGING MARKETS TECHNOLOGY SOLUTIONS TACKLING DATA ANALYTICS QA EVALUATING BIG DATA TO PREDICT CAR OWNER BEHAVIOR TECHNOLOGY SOLUTIONS NEWSMAKER ARFA SYED BY BRIAN ALBRIGHT | CONTRIBUTING EDITOR apgemini has launched a new Automotive Insights Laboratory, a virtual lab that will use Big Data and analytics to help car manufacturers anticipate customer behavior. The service, part of the companyÕs AutomotiveConnect offering, has already helped OEM clients improve customer targeting, boost warranty claims predictions and increase sales. It also could potentially impact the way automakers approach service. TRENDS & MARKET ANALYSIS ÓThe industry needs to improve its ability to combine intelligence about vehicles and consumers to produce insights that can be actioned. Companies should, for example, be able to predict when a consumer will be looking to change their car, and what sort of car they are likely to buy,Ó said Kai Grambow, global head of automotive, Capgemini. ÒCompanies need to start treating data like the new oil powering this industry. Like oil, data can be difficult to find and extract, but becomes a hugely valuable asset once refined.Ó Scan this QR Code to read more articles like this. Or visit SearchAutoParts. com/Trending GET A FREE SCAN TOOL APP AT: www.scanlife.com 22 APRIL 2015 magenta cyan yellow black Digital and Social Media Manager, Auto Care Association The lab uses data from macroeconomic trends, geographic habits, social media, and information provided from the manufacturers themselves to improve the development of business strategies, define customer service offerings and identify new opportunities. According to Capgemini, the lab has helped clients improve consumer profiling and targeting, renewal and loyalty, and enhanced predictions for pricing, demand and warranty claims. According to Nick Gill, chairman of the global automotive sector at Capgemini, the Insights Laboratory evolved out of discussion about the influx of customer and vehicle data now available to automakers, and how to make the best use of it. ÒWe are collecting all of this data to get to know the customer better, and collecting all of this intelligence from the car,Ó Gill says. ÒWhat are we going to do with all of this massive, big data that we are going to collect?Ó Automakers can approach the company with specific questions or problems, and have their own data mapped to economic and socio-demographic data, along with industry data from Edmunds, JD Power, and other sources. ÒWeÕve been able to find some amazing things for several clients,Ó Gill says. ÒIn an industry where a one or two percent change is significant, we can come up with solutions that can influence results by as much as 10 or 15 percent.Ó Among the benefits experienced by clients using the service: campaign revenue increased through four-fold improved customer targeting; a 10 per- ARE THERE SOCIAL MEDIA PLATFORMS THAT SEEM TO LEND THEMSELVES TO THE AFTERMARKET? I n J a n u a r y, t h e Yo u n g Auto Care Network Group (YANG), part of the Auto Care Association, hosted a webinar on using social media for businesses. The presentation was part of the ongoing YANG Time webinar series. Arfa Syed, digital and social media manager at the Auto Care Association, spoke to Aftermarket Business World about the use of social media in the aftermarket. A: I think that the automotive media is super active on Twitter, and anything you want publicized; Twitter is a really great platform for that. Internally, if companies want to promote something they of ten use video, and YouTube is the best platform for that. We’re seeing a lot more video, and it’s easy to embed so you can recycle it on all of your different social media platforms. Q: What have been some of the most interesting or effective uses of social media you’ve seen in this market? A: I think it’s really effective to focus on engagement and less on numbers now. You want to identify people that are active online and build a relationship with them, versus just posting AftermarketBusiness.com ES590888_AMB0415_022.pgs 03.26.2015 20:08 ADV “THERE’S ACTUALLY VERY LITTLE COMMUNICATION BETWEEN CARS AND HUBS TODAY. THE INSURANCE INDUSTRY IS PROBABLY DOING MORE OF IT THAN THE MANUFACTURERS.” Making great shocks starts from the inside – NICK GILL, CHAIRMAN OF THE GLOBAL AUTOMOTIVE SECTOR AT CAPGEMINI something on the social media black hole. You have to identify who the key influencers are, whether those are customers or members, or people that distribute for you. Once you figure out who those key people are, social media can work really well. Q: How does social media apply to B2B marketing? A: With B2B you have to focus on those business relationships, and that’s why social media is so great. Social media is a great listening tool. You can find out what types of conversations are happening online. The first step with social media is to listen, and find ways to interject yourself into those conversations. You have to have a strategy, and you should always listen and hear what people online are saying. cent cost reduction via smaller target group sizes; doubling the accuracy of warranty claims predictions; and doubling or tripling of sales conversions via up-sell and cross-sell opportunities. ÒYou never have all of the data you want, but you often have more than you need,Ó Gill says. ÒMany of our insights have come from public domain data. For example, we worked with an OEM on where to market electric vehicles. Just taking information about where people live, their environmental affinities, spending power, what types of houses they live in, all of these things influence the propensity for buying an electric vehicle. You can map that and not only say a certain type of person is likely to be a buyer, but you can focus on specific dealerships because of the qualities of the people living nearby.Ó So far, most of the projects have focused on the sales side: determining who might buy a new car, when they are likely to buy, and how much they would be willing to pay. Gill says that service is likely to be just as big an area of interest because it is a more predict- able operation than sales. ÒFrom the connected vehicle side, there are so many variables,Ó Gill says. ÒIf you have a problem, do you need to solve it immediately or defer it? You can develop some more menu-based services based on those client needs and consumer needs. There is a lot more we can do with the data on the service side that we are not doing today.Ó So far, telematics data has not played a large role, however. ÒThereÕs actually very little communication between cars and hubs today,Ó Gill says. ÒThe insurance industry is probably doing more of it than the manufacturers. ThatÕs a wake-up call for the industry. IÕm nervous that we may let the moment pass us by and other industries like insurance will seize the data opportunity ahead of us. Connected vehicles just arenÕt that connected today. Not many companies are leveraging that data a meaningful way.Ó The AutomotiveConnect line of offerings includes consulting, technology expertise and digital services. The Insights Laboratory is the key feature of the Connected Insights focus area, while the Connected Customer module helps manufacturers better segment their customers into the proper channels. The Connected Vehicle focus area keys in on telematics and consumer connectivity in the vehicle. Gill says the auto industry will continue to grapple with data management as the number of vehicles on the road increases and the number of sensor points available expands. ÒWeÕre really at the beginning of a journey, and weÕre just now seeing what kinds of things we can do with the data,Ó Gill says. ÒMost consumers are very happy these days to share data, as long as they trust the company and get a benefit from sharing the data. The industry can gain a deeper understanding of the customer and tailor services around that.Ó Adjusting Piston Valve Assembly Gabriel’s O-Ring piston seal adjusts as it wears to maintain a tight seal between the piston and pressure tube. This minimizes leak paths for a longer product life. Gabriel has been perfecting shock absorber technology since inventing the first one in 1907. www.gabriel.com SEARC HAUTO PARTS .C O M 2 3 magenta cyan yellow black ES590887_AMB0415_023.pgs 03.26.2015 20:08 ADV STAY ON TOP OF INDUSTRY DEVELOPMENTS. Sign up today for FREE SUBSCRIPTIONS to RESEARCH Distribution E-News & Alerts Aftermarket Technology E-News Aftermarket Business World E-Zine TECHNICIAN ATTITUDE STUDY HAVING THE RIGHT AUTO PARTS, ABILITY TO DELIVER QUICKLY ARE KEYS TO SELLING TO TECHS BY BRUCE ADAMS | MANAGING EDITOR to them quickly. Techs surveyed in the Aftermarket Business World Technician Attitude study overwhelmingly agreed that a wide availability of parts is the primary reason they have a preferred supplier. Techs selected this as the most important reason they prefer a supplier in eight out of nine product categories. Fast delivery was the second most important attribute as it was rated the first or second most important reason in five out of nine product categories, and third most important in four categories. Good relationships were the third most mentioned reason why techs prefer to use certain suppliers. Price came in a distant fourth and did not rate in the top four reasons that techs prefer a supplier in four of the nine product categories. Auto parts retailers and jobbers were consistently chosen as the most preferred purchasing channels by auto techs. Parts retailers were selected as the most preferred or second24 APRIL 2015 magenta cyan yellow black most preferred purchasing channel in eight of nine product categories surveyed, while jobbers were picked No. 1 or No. 2 in seven of nine categories surveyed. Warehouse distributors were a solid third most preferred purchasing channel for techs. Auto parts retailers also were chosen first as the actual auto parts source of techs in Auxiliary Lighting 26 six of nine product categories. Chassis 28 Warehouse distributors and jobbers were a close second and Filters 30 third, respectively. Gaskets 32 Methodology: The Aftermarket Business World Oxygen Sensors 34 2015 Technician Attitude Study Shocks & Struts 36 was fielded to readers of sister Spark Plugs 38 publication Motor Age via email. Study results are intended to Wheel Bearings 40 show general industry trends, Wipers 42 not statistical certainties. CONTENTS Photos: Thinkstock want to be the preferred auto parts supplier to today’s automotive technicians, carry a lot of inventory that you are able to deliver AftermarketBusiness.com ES590856_AMB0415_024.pgs 03.26.2015 20:06 ADV Knowledge in the fast lane Partnering with Team Penske to take performance to the next level. More than just a logo on the cars, SKF is a true technical sponsor to Team Penske, sharing the power of knowledge engineering to provide a competitive advantage to Brad Keselowski, Joey Logano, Ryan Blaney and Helio Castroneves. We’re committed to helping Team Penske get to Victory Lane, and to applying lessons learned on the track to the products SKF brings to the automotive aftermarket. www.skfpartsinfo.tv @skfpartsinfo The Power of Knowledge Engineering ® SKF is a registered trademark of the SKF Group | © SKF Group 2015 magenta cyan yellow black ES587232_AMB0415_025_FP.pgs 03.21.2015 01:12 ADV STUDY TECHNICIAN ATTITUDE STUDY AUXILIARY LIGHTING Purchasing source Warehouse distributor 56% Auto parts retailer 44% Direct from manufacturer 44% Jobber 63% Dealership 25% Preferred purchasing channel 40% of technicians always give recommendations for buying a specific brand of auxiliary lighting. Amount of auxiliary lighting that is returned monthly None 69% 5-9% 0% Warehouse distributor 33% 1-2% 2% 10% + 8% Auto parts retailer 13% 3-4% 1% I don’t know 0% Direct from manufacturer 20% Jobber 27% Primary reason for preferred supplier Good relationship 13% Parts availability 31% Price 13% Fast delivery 31% 53% do not purchase lighting from a car dealership. Reasons: Too expensive 50% Aftermarket products as good as (or better than) OEM 50% Convenience/time limits 13% National 0% 36% Both Reasons for buying a particular auxiliary light Performance 9% Customer request 14% 79% of technicians report they DO NOT know how much over the jobber they pay. Frequency of supplier contact What techs know they pay Once a week .............................. 6% Every two weeks ........................ 0% Once a month .......................... 31% Every three months .................... 0% Every six months ........................ 0% Yearly ........................................ 13% No contact necessary .............. 50% 1-5%* 34% 6-10%* 33% 11-15%* 33% 16-25%* 0% More than 25% 0% Brand vs. supplier loyalty What techs think they pay 1-5%* 46% 6-10%* 9% 11-15%* 18% 16-25%* 9% More than 25% 18% *Percent over jobber magenta cyan yellow black 64% Private Margins 26 APRIL 2015 National brands vs. private label purchases If a primary supplier of auxiliary lighting replaced a brand with another of like quality, a tech would: Change suppliers to continue purchasing original brand ........ 29% Keep primary supplier and purchase new brand ................................ 71% Quality 8% Customer frequency of taking auxiliary lighting recommendation Always 44% Sometimes 37% Rarely 13% Never 6% Internet ordering frequency 0-10% of the time 74% 11-25% of the time 13% 25-50% of the time 13% 51-75% of the time 0% 76-100% of the time 0% AftermarketBusiness.com ES590818_AMB0415_026.pgs 03.26.2015 20:04 ADV Lights that live on. Philips Vision LED lights last 12 years, guaranteed. A breakthrough innovation. Replace your standard incandescent bulbs with our robust Philips Vision LEDs that deliver dynamic lighting both inside and out. Thanks to their 12+ years lifetime, you will likely never have to replace them again. To learn more, visit www.philips.com/visionled magenta cyan yellow black ES587279_AMB0415_027_FP.pgs 03.21.2015 01:14 ADV STUDY TECHNICIAN ATTITUDE STUDY CHASSIS Purchasing source Warehouse distributor 50% Auto parts retailer 55% Direct from manufacturer 10% Jobber 30% Dealership 35% Preferred purchasing channel 48% of technicians always give recommendations for buying a specific brand of chassis parts. Amount of chassis parts that are returned monthly None 40% 5-9% 5% 5% Warehouse distributor 45% 1-2% 30% 10% + Auto parts retailer 30% 3-4% 15% I don’t know 5% Direct from manufacturer 10% Jobber 15% Primary reason for preferred supplier Good relationship 10% Parts availability 25% Price 20% Fast delivery 30% 71% purchase chassis parts from a car dealership. Reasons: Only place it’s available OEM form/fit/function Warranty 67% 60% 27% 80% of technicians report they DO NOT know how much over the jobber they pay. Frequency of supplier contact What techs know they pay Once a week .............................. 0% Every two weeks ........................ 0% Once a month .......................... 20% Every three months .................. 10% Every six months ........................ 5% Yearly ........................................ 15% No contact necessary .............. 50% 25% 6-10%* 75% 11-15%* 0% 16-25%* 0% More than 25% 0% Brand vs. supplier loyalty What techs think they pay 1-5%* 0% 6-10%* 50% 11-15%* 21% 16-25%* 29% More than 25% 0% *Percent over jobber 28 APRIL 2015 magenta cyan yellow black 48% National 14% Private Margins 1-5%* National brands vs. private label purchases If a primary supplier of chassis parts replaced a brand with another of like quality, a tech would: Change suppliers to continue purchasing original brand ........ 25% Keep primary supplier and purchase new brand ................................ 75% 38% Both Reasons for buying a particular chassis part Brand 33% Availability 37% Quality 40% Customer frequency of taking a chassis parts recommendation Always 67% Sometimes 29% Rarely 4% Never 0% Internet ordering frequency 0-10% of the time 85% 11-25% of the time 5% 25-75% of the time 0% 75-99% of the time 5% All the time 5% AftermarketBusiness.com ES590819_AMB0415_028.pgs 03.26.2015 20:05 ADV magenta cyan yellow black ES587259_AMB0415_029_FP.pgs 03.21.2015 01:13 ADV 2009 J i m m i e J o h n s o n 2008 J i m m i e J o h n s o n 2010 J i m m i e J o h n s o n 2003 M a t t K e n s e t h 1996 T e r r y L a b o n t e 1989 R u s t y W a l l a c e 1982 D a r r e l l W a l t r i p 1975 R i c h a r d P e t t y 1968 D a v i d P e a r s o n 2011 T o n y S t e w a r t 2004 K u r t B u s c h 1997 J e f f G o r d o n 1990 D a l e E a r n h a r d t 1983 B o b b y A l l i s o n 1976 C a l e Y a r b o r o u g h 1969 D a v i d P e a r s o n 2012 B r a d K e s e l o w s k i 2005 T o n y S t e w a r t 1998 J e f f G o r d o n 1991 D a l e E a r n h a r d t 1984 T e r r y L a b o n t e 1977 C a l e Y a r b o r o u g h 1970 B o b b y I s a a c ©2015 Federal-Mogul Motorparts Corporation. NASCAR is a registered trademark of NASCAR, Inc. All other trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved. moogproblemsolver.com that makes MOOG the industry’s most preferred brand, both on and off the track. design parts that can be pushed, punished and trusted when the pressure is on. It’s this kind of performance You can be sure every one of the champion drivers got there by pushing our parts to the limit. That’s why we MOOG® made history again in the 2014 season by upping our NASCAR® championship streak to 49 in a row. 2002 T o n y S t e w a r t 1988 B i l l E l l i o t t 1987 D a l e E a r n h a r d t 2001 J e f f G o r d o n 1981 D a r r e l l W a l t r i p 1980 D a l e E a r n h a r d t 1995 J e f f G o r d o n 1974 R i c h a r d P e t t y 1973 B e n n y P a r s o n s 1994 D a l e E a r n h a r d t 1967 R i c h a r d P e t t y 1966 D a v i d P e a r s o n 2013 J i m m i e J o h n s o n 2006 J i m m i e J o h n s o n 1999 D a l e J a r r e t t 1992 A l a n K u l w i c k i 1985 D a r r e l l W a l t r i p 1978 C a l e Y a r b o r o u g h 1971 R i c h a r d P e t t y Our Unbroken Line of 49. 2014 K e v i n H a r v i c k 2007 J i m m i e J o h n s o n 2000 B o b b y L a b o n t e 1993 D a l e E a r n h a r d t 1986 D a l e E a r n h a r d t 1979 R i c h a r d P e t t y 1972 R i c h a r d P e t t y STUDY TECHNICIAN ATTITUDE STUDY FILTERS Purchasing source Warehouse distributor 39% Auto parts retailer 52% Dealership 27% Jobber 48% Two-step distributor 9% Preferred purchasing channel 45% of technicians always give recommendations for buying a specific brand of filter. None 77% 5-9% 0% 23% 10% + 0% Warehouse distributor 16% 1-2% Auto parts retailer 25% 3-4% Direct from manufacturer Jobber National brands vs. private label purchases Amount of filters that are returned monthly 0% I don’t know 0% 9% 38% Primary reason for preferred supplier Good relationship 27% Parts availability 27% Carries specific brands 15% Fast delivery 15% 60% purchase filters from a car dealership. Reasons: OEM form, fit, function Only place it is available Customer request 63% 53% 16% 70% of technicians report they DO NOT know how much over the jobber they pay. Frequency of supplier contact What techs know they pay Once a week ............................ 42% Every two weeks ........................ 7% Once a month .......................... 13% Every three months .................... 6% Every six months ........................ 0% Yearly .......................................... 3% No contact necessary .............. 29% 45% 6-10%* 11% 11-15%* 22% 16-25%* 11% More than 25% 11% Brand vs. supplier loyalty What techs think they pay 1-5%* 24% 6-10%* 38% 11-15%* 14% 16-25%* 24% More than 25% 0% *Percent over jobber 30 APRIL 2015 magenta cyan yellow black National 30% Private Margins 1-5%* 49% If a primary supplier of filters replaced a brand with another of like quality, a tech would: Change suppliers to continue purchasing original brand ........ 36% Keep primary supplier and purchase new brand ................................ 64% 21% Both Reasons for buying a particular filter Brand 46% Availability 44% Quality 49% Customer frequency of taking a filter recommendation Always 42% Sometimes 40% Rarely 12% Never 6% Internet ordering frequency 0-10% of the time 87% 11-25% of the time 0% 25-50% of the time 10% 51-99% of the time 0% All the time 3% AftermarketBusiness.com ES590820_AMB0415_030.pgs 03.26.2015 20:04 ADV DRIVING PERFORMANCE FROM CHANNEL PARTNERS TO TECHNICIANS SMART PART(ner) www.mahle-aftermarket.com magenta cyan yellow black ES587245_AMB0415_031_FP.pgs 03.21.2015 01:12 ADV STUDY TECHNICIAN ATTITUDE STUDY GASKETS Purchasing source Warehouse distributor 41% Auto parts retailer 55% Direct from manufacturer 17% Jobber 48% Dealership 41% Preferred purchasing channel 50% of technicians always give recommendations for buying a specific brand of gasket. Amount of gaskets that are returned monthly None 66% 5-9% 0% 27% 10% + 3% Warehouse distributor 24% 1-2% Auto parts retailer 28% 3-4% Dealership 10% Jobber 31% Primary reason for preferred supplier Good relationship 14% Parts availability 48% Carries specific brands 14% Fast delivery 24% 4% I don’t know 0% 72% Reasons: Only place available OEM form/fit/function Warranty 62% 57% 14% What techs know they pay Once a week .............................. 0% Every two weeks ........................ 0% Once a month .......................... 10% Every three months .................. 10% Every six months ........................ 7% Yearly .......................................... 0% No contact necessary .............. 73% 50% 11-15%* 50% 16-25%* 0% More than 25% 0% Brand vs. supplier loyalty What techs think they pay 1-5%* 30% 6-10%* 20% 11-15%* 35% 16-25%* 15% More than 25% 0% *Percent over jobber 32 APRIL 2015 magenta cyan yellow black 0% Both Frequency of supplier contact 6-10%* National purchase gaskets from a car dealership. 81% of technicians report they DO NOT know how much over the jobber they pay. 0% 83% 17% Margins 1-5%* National brands vs. private label purchases If a primary supplier of gaskets replaced a brand with another of like quality, a tech would: Change suppliers to continue purchasing original brand ........ 46% Keep primary supplier and purchase new brand ................................ 54% Reasons for buying a particular gasket Brand 41% Availability 50% Quality 59% Customer frequency of taking a gasket recommendation Always 73% Sometimes 24% Rarely 3% Never 0% Internet ordering frequency 0-10% of the time 83% 11-25% of the time 7% 25-50% of the time 4% 51-99% of the time 3% All the time 3% AftermarketBusiness.com ES590821_AMB0415_032.pgs 03.26.2015 20:05 ADV No matter what sealing challenge your customers face... FEL PRO - O N LY.c o m ONLY FEL-PRO ©2015 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved. ® magenta cyan yellow black has the coverage and quality they demand. Providing the latest applications and frst-to-market sealing innovations that keep your customers satisifed. ES587243_AMB0415_033_FP.pgs 03.21.2015 01:12 ADV STUDY TECHNICIAN ATTITUDE STUDY OXYGEN SENSORS Purchasing source Warehouse distributor 56% Auto parts retailer 61% Internet 6% Jobber 50% Dealership 44% Preferred purchasing channel 44% of technicians always give recommendations for buying a specific brand of oxygen sensor. Amount of oxygen sensors that are returned monthly None 69% 5-9% 0% 25% 10% + 0% Warehouse distributor 18% 1-2% Auto parts retailer 41% 3-4% Dealership 17% Jobber 24% Primary reason for preferred supplier Good relationship 13% Parts availability 31% Carries specific brands 19% Fast delivery 19% 6% I don’t know 0% 53% do not purchase sensors from a car dealership. Reasons: Too expensive 85% Aftermarket products as good as (or better than) OEM 54% Convenience/time limits 54% 88% of technicians report they DO NOT know how much over the jobber they pay. Frequency of supplier contact What techs know they pay Once a week ............................ 11% Every two weeks ........................ 6% Once a month .......................... 12% Every three months .................... 0% Every six months ........................ 6% Yearly ........................................ 12% No contact necessary .............. 53% 0% 6-10%* 33% 11-15%* 0% 16-25%* 67% More than 25% 0% Brand vs. supplier loyalty What techs think they pay 1-5%* 20% 6-10%* 27% 11-15%* 27% 16-25%* 20% More than 25% 6% *Percent over jobber 34 APRIL 2015 magenta cyan yellow black 72% National 0% Private Margins 1-5%* National brands vs. private label purchases If a primary supplier of oxygen sensors replaced a brand with another of like quality, a tech would: Change suppliers to continue purchasing original brand ........ 38% Keep primary supplier and purchase new brand ................................ 62% 28% Both Reasons for buying a particular oxygen sensor Brand 35% Price 48% Availability 43% Customer frequency of taking an oxygen sensor recommendation Always 47% Sometimes 23% Rarely 12% Never 18% Internet ordering frequency 0-10% of the time 88% 11-50% of the time 0% 51-75% of the time 6% 76-99% of the time 0% 76-100% of the time 6% AftermarketBusiness.com ES590823_AMB0415_034.pgs 03.26.2015 20:05 ADV For repairs that are right the first time, your best bet is an original equipment part. NTK Oxygen Sensors are original equipment on more vehicles worldwide than any other brand. For details, go to NGKsparkplugs.com Become a fan on Facebook facebook.com/NGKSparkplugs Visit us at Automechanika Chicago - booth #2618 magenta cyan yellow black The World Leader ES587240_AMB0415_035_FP.pgs 03.21.2015 01:12 ADV STUDY TECHNICIAN ATTITUDE STUDY SHOCKS & STRUTS Purchasing source Warehouse distributor 40% Auto parts retailer 68% Direct from manufacturer 18% Jobber 36% Dealership 32% Preferred purchasing channel 37% of technicians always give recommendations for buying a specific brand of shocks and struts. Amount of shocks and struts that are returned monthly None 72% 5-9% 2% 18% 10% + 2% Warehouse distributor 20% 1-2% Auto parts retailer 40% 3-4% 4% I don’t know 2% Direct from manufacturer 12% Jobber 12% Primary reason for preferred supplier Good relationship 18% Parts availability 24% Price 22% Fast delivery 20% 70% purchase shocks and struts from a car dealership. Reasons: OEM form, fit, function Only place it is available Customer request 68% 35% 38% 74% of technicians report they DO NOT know how much over the jobber they pay. Frequency of supplier contact What techs know they pay Once a week .............................. 4% Every two weeks ........................ 4% Once a month .......................... 14% Every three months .................... 8% Every six months ...................... 10% Yearly .......................................... 6% No contact necessary .............. 54% 46% 6-10%* 18% 11-15%* 0% 16-25%* 18% More than 25% 18% Brand vs. supplier loyalty What techs think they pay 1-5%* 25% 6-10%* 31% 11-15%* 25% 16-25%* 16% More than 25% 3% *Percent over jobber 36 APRIL 2015 magenta cyan yellow black 67% National 6% Private Margins 1-5%* National brands vs. private label purchases If a primary supplier of shocks and struts replaced a brand with another of like quality, a tech would: Change suppliers to continue purchasing original brand ........ 32% Keep primary supplier and purchase new brand ................................ 68% 27% Both Reasons for buying a particular shock/strut Brand 38% Availability 54% Quality 49% Customer frequency of taking a shocks and struts recommendation Always 46% Sometimes 46% Rarely 4% Never 4% Internet ordering frequency 0-10% of the time 83% 11-25% of the time 11% 25-50% of the time 4% 51-75% of the time 0% 76-100% of the time 2% AftermarketBusiness.com ES590822_AMB0415_036.pgs 03.26.2015 20:05 ADV Origin al E arket rm te ent for the ipm Af qu OEA ® KYB Shocks & Struts Research, testing, zero-defect manufacturing tolerance and a commitment to original vehicle design and performance. The choice of New Vehicle Manufacturers and Top Service Professionals around the world. Beware of Copies & Imitations If it doesn’t have the KYB logo - it’s not KYB. Anything less than KYB.......is just less! Please visit us at www.kyb.com to learn more magenta cyan yellow black ES587261_AMB0415_037_FP.pgs 03.21.2015 01:13 ADV STUDY TECHNICIAN ATTITUDE STUDY SPARK PLUGS Purchasing source Warehouse distributor 39% Auto parts retailer 46% Direct from manufacturer 25% Jobber 54% Dealership 36% Preferred purchasing channel 57% of technicians always give recommendations for buying a specific brand of spark plug. Amount of spark plugs that are returned monthly None 79% 5-9% 0% 17% 10% + 4% Warehouse distributor 18% 1-2% Auto parts retailer 32% 3-4% 0% I don’t know 0% Direct from manufacturer 11% Jobber 36% Primary reason for preferred supplier Good relationship 11% Parts availability 59% Carries specific brands 11% Fast delivery 19% 60% purchase spark plugs from a car dealership. Reasons: OEM form/fit/function Only place it is available For OEM brand name 63% 38% 25% 92% of technicians report they DO NOT know how much over the jobber they pay. Frequency of supplier contact What techs know they pay Once a week .............................. 0% Every two weeks ........................ 4% Once a month .......................... 11% Every three months .................... 4% Every six months ........................ 7% Yearly .......................................... 3% No contact necessary .............. 71% 33% 6-10%* 67% 11-15%* 0% 16-25%* 0% More than 25% 0% Brand vs. supplier loyalty What techs think they pay 1-5%* 38% 6-10%* 29% 11-15%* 14% 16-25%* 19% More than 25% 0% *Percent over jobber 38 APRIL 2015 magenta cyan yellow black 93% National 3% Private Margins 1-5%* National brands vs. private label purchases If a primary supplier of spark plugs replaced a brand with another of like quality, a tech would: Change suppliers to continue purchasing original brand ........ 46% Keep primary supplier and purchase new brand ................................ 54% 4% Both Reasons for buying a particular spark plug Brand 57% Performance 43% Quality 57% Customer frequency of taking a spark plug recommendation Always 57% Sometimes 39% Rarely 4% Never 0% Internet ordering frequency 0-10% of the time 92% 11-25% of the time 4% 25-75% of the time 0% 76-99% of the time 4% All the time 0% AftermarketBusiness.com ES590824_AMB0415_038.pgs 03.26.2015 20:05 ADV Champion® spark plugs are engineered to provide maximum power and sure starts, no matter what engine. Fire up your car, truck, boat, ATV and power equipment with Champion to deliver performance that powers you. ©2015 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved. magenta cyan yellow black ES587262_AMB0415_039_FP.pgs 03.21.2015 01:13 ADV STUDY TECHNICIAN ATTITUDE STUDY WHEEL BEARINGS Purchasing source Warehouse distributor 33% Auto parts retailer 87% Internet 20% Jobber 40% Dealership 47% Preferred purchasing channel 60% of technicians always give recommendations for buying a specific brand of wheel bearing. Amount of wheel bearings that are returned monthly None 60% 5-9% 0% 27% 10% + 0% Warehouse distributor 20% 1-2% Auto parts retailer 47% 3-4% Dealership 7% I don’t know 6% 7% Jobber 20% Primary reason for preferred supplier Good relationship 27% Parts availability 40% Price 13% Fast delivery 13% 75% purchase wheel bearings from a car dealership. Reasons: OEM form, fit, function Only place it is available Warranty 67% 50% 17% 73% of technicians report they DO NOT know how much over the jobber they pay. Frequency of supplier contact What techs know they pay Once a week .............................. 0% Every two weeks ........................ 0% Once a month ............................ 7% Every three months .................... 7% Every six months ........................ 0% Yearly .......................................... 6% No contact necessary .............. 80% 17% 6-10%* 83% 11-15%* 0% 16-25%* 0% More than 25% 0% Brand vs. supplier loyalty What techs think they pay 1-5%* 8% 6-10%* 33% 11-15%* 33% 16-25%* 25% More than 25% 0% *Percent over jobber 40 APRIL 2015 magenta cyan yellow black 80% National 13% Private Margins 1-5%* National brands vs. private label purchases If a primary supplier of wheel bearings replaced a brand with another of like quality, a tech would: Change suppliers to continue purchasing original brand ........ 27% Keep primary supplier and purchase new brand ................................ 73% 7% Both Reasons for buying a particular wheel bearing Brand 42% Availability 53% Quality 58% Customer frequency of taking a wheel bearings recommendation Always 60% Sometimes 33% Rarely 0% Never 7% Internet ordering frequency 0-10% of the time 100% 11-25% of the time 0% 25-50% of the time 0% 51-75% of the time 0% 76-100% of the time 0% AftermarketBusiness.com ES590817_AMB0415_040.pgs 03.26.2015 20:04 ADV magenta cyan yellow black ES587244_AMB0415_041_FP.pgs 03.21.2015 01:13 ADV STUDY TECHNICIAN ATTITUDE STUDY WIPERS Purchasing source Warehouse distributor 57% Auto parts retailer 43% Direct from manufacturer 14% Jobber 38% Dealership 29% Preferred purchasing channel 38% of technicians always give recommendations for buying a specific brand of wiper. None 59% 5-9% 0% 32% 10% + 0% Warehouse distributor 57% 1-2% Auto parts retailer 19% 3-4% Dealership National brands vs. private label purchases Amount of wipers that are returned monthly 5% I don’t know 4% 5% Jobber 19% Primary reason for preferred supplier Good relationship 10% Parts availability 35% Price 35% Fast delivery 10% 64% purchase wipers from a car dealership. Reasons: Only place it is available OEM form, fit, function Easy to work with 62% 46% 8% 77% of technicians report they DO NOT know how much over the jobber they pay. Frequency of supplier contact What techs know they pay Once a week ............................ 19% Every two weeks ...................... 10% Once a month .......................... 10% Every three months .................... 5% Every six months ........................ 9% Yearly .......................................... 9% No contact necessary .............. 38% 43% 6-10%* 14% 11-15%* 29% 16-25%* 0% More than 25% 14% Brand vs. supplier loyalty What techs think they pay 1-5%* 37% 6-10%* 19% 11-15%* 31% 16-25%* 13% More than 25% 0% *Percent over jobber 42 APRIL 2015 magenta cyan yellow black National 19% Private Margins 1-5%* 67% If a primary supplier of wipers replaced a brand with another of like quality, a tech would: Change suppliers to continue purchasing original brand ........ 33% Keep primary supplier and purchase new brand ................................ 67% 14% Both Reasons for buying a particular wiper Brand 46% Price 46% Quality 42% Customer frequency of taking a wiper recommendation Always 43% Sometimes 43% Rarely 0% Never 14% Internet ordering frequency 0-10% of the time 100% 11-25% of the time 0% 25-50% of the time 0% 51-75% of the time 0% 76-100% of the time 0% AftermarketBusiness.com ES590816_AMB0415_042.pgs 03.26.2015 20:04 ADV THE RIGHT BLADES MATTER. www.ANCOWipers.com Like Us on Facebook facebook.com/ANCOWiperBlades Follow Us on Twitter @ANCOWiperBlades Make any car a safer car to drive by installing new wiper blades from ANCO ®. The complete family of ANCO wiper blades are engineered with the latest technology to provide more effective blade-to-windshield contact for improved visibility. Preparing any driver, for any season. ANCO. The Clearest Choice® in wiper blades. NHL and the NHL Shield are registered trademarks of the National Hockey League. NHL and NHL team marks are the property of the NHL and its teams. © NHL 2015. All Rights Reserved. ©2015 Federal-Mogul Motorparts Corporation. All other trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved. magenta cyan yellow black ES587315_AMB0415_043_FP.pgs 03.21.2015 01:19 ADV PRODUCTS TOOLS, PARTS AND RESOURCES FOR EVERY SHOP EVERY DAY PERFORMANCE REAR AXLE SHAFTS Alloy USA, a manufacturer of performance drivetrain products, introduced its line of heavy-duty rear axle shafts for Jeep, Dodge, Ford, International and GM cars and trucks. The axles are designed, engineered and tested to hold up to tough abuse. Constructed from precision CNC machined high-strength 4140 chromoly steel, the axles are heat-treated, tempered and induction-hardened to produce a resilient product that’s built to take abuse. Alloy USA uses cold spline rolling technology to prevent stress points that can lead to fracturing that is common with axles with traditional cut splines. www.alloyusa.com. Alloy USA FRONT AIR STRUTS FOR BMW X5 Arnott Air Suspension Products introduced new aftermarket air suspension struts for the front of the 2000 to 2006 BMW X5 (E53 Chassis) with four-corner air leveling. The new right and left front air struts are AS-2764 (front right) and AS-2765 (front left). A detailed installation manual helps ensure a successful remove and replace experience. The parts are backed by Arnott’s Limited Lifetime Warranty in North America; and are covered by a two-year limited warranty elsewhere. THE LATEST PRODUCTS TECHNOLOGIES TO HELP YOU WORK SMARTER AND KEEP YOUR BUSINESS PROFITABLE WEAR RESISTANT MULTI V-BELT The CONTI Unipower Tough Grip multi V-belt with textile surface developed by the ContiTech Power Transmission Group minimizes noise buildup when accessories like the air-conditioning system, power-steering pump or generators are in operation. The belt’s pulley side consists of a fabric reinforcement that is highly resistant to wear and enhances anti-slipping and anti-wearing properties. The warp-knitted fabric on the sectioned side is ultra wearresistant, capable of absorbing high dynamic stress loads and stretchable longitudinally and traversely. www.contitech.de ContiTech MASS AIR FLOW SENSORS Delphi Product & Service Solutions announces 20 new Mass Airflow Sensors to its engine management portfolio covering more than 10.2 million vehicles built from 1990 to 2013. Applications cover: Audi, BMW, Chevrolet, Hyundai, Kia, Lexus, Mazda, Nissan and Toyota. www.arnottindustries.com Delphiautoparts.com Arnott Delphi BOSCH EVOLUTION WIPER BLADES FAST ORANGE HAND CLEANER Robert Bosch LLC has launched a new look for its line of Bosch Evolution Wiper Blades and added two new blade lengths – 13-inch and 15-inch – to the program. The new packaging design was created to capture consumer attention through the use of bright color and dramatic imagery that together make for a strong presence on retail shelves. The new design incorporates the Bosch logo family look for continuity across all Bosch Wiper Blade lines. Beam or “bracketless” blades are designed without the metal brackets, joints or hinges found on conventional wiper blades. This design affords improved winter wiping performance as there is no place for ice and snow to build up. Permatex’s Fast Orange Hand Cleaner is now offered in a new rocker cap bottle that allows onehand use and helps keep the bottle free of grease. The cap uses a rock-toopen, rock-to-close system for easy, mess-free use. It comes in a 15-ounce bottle and is offered in smooth and pumice formulas. This MicroGel formula adheres better to the hands, reducing the amount of product needed to remove grease from hands. It includes skin conditioners to keep hands soft. The cleaner is biodegradable, non-toxic and petroleum-solvent free. www.boschautoparts.com www.permatex.com Bosch Permatex 44 APRIL 2015 magenta cyan yellow black AftermarketBusiness.com ES592234_AMB0415_044.pgs 03.27.2015 23:11 ADV There’s a lot riding on the safety of your lift. Protect your technicians, your customers and your ďƵƐŝŶĞƐƐ ,ĂǀĞĂůůLJŽƵƌůŝŌƐŝŶƐƉĞĐƚĞĚĂŶŶƵĂůůLJďLJ ĂŶ>/ĞƌƟĮĞĚ>ŝŌ/ŶƐƉĞĐƚŽƌ ŽŶ ƚƚƌƵƐƚLJŽƵƌůŝŌƐĂĨĞƚLJƚŽũƵƐƚĂŶLJŽŶĞ >/ĞƌƟĮĞĚ>ŝŌ/ŶƐƉĞĐƚŽƌƐĂƌĞƉƌŽǀĞŶƋƵĂůŝĮĞĚ ƚŽŝŶƐƉĞĐƚĞǀĞƌLJůŝŌŝŶLJŽƵƌƐĞƌǀŝĐĞĚĞƉĂƌƚŵĞŶƚƚŽĚĞƚĞƌŵŝŶĞŝĨƚŚĞLJĂƌĞĨƵŶĐƟŽŶŝŶŐƉƌŽƉĞƌůLJ ŶŶƵĂůůŝŌŝŶƐƉĞĐƟŽŶƐĂƌĞƌĞƋƵŝƌĞĚďLJŚĞĂůƚŚΘƐĂĨĞƚLJŽĸĐŝĂůƐE^/ƐƚĂŶĚĂƌĚƐĂŶĚůŽĐĂů ƌĞŐƵůĂƟŽŶƐ ƵƚĞǀĞŶŵŽƌĞŝŵƉŽƌƚĂŶƚůLJ ƚĂŬŝŶŐĐĂƌĞŽĨLJŽƵƌůŝŌƐŵĞĂŶƐƚĂŬŝŶŐĐĂƌĞŽĨ LJŽƵƌƚĞĂŵ dŚĞŝƌƐĂĨĞƚLJŝƐƌŝĚŝŶŐŽŶŝƚ dŽĮŶĚĂŶ>/ĞƌƟĮĞĚ>ŝŌ/ŶƐƉĞĐƚŽƌŝŶLJŽƵƌ ĂƌĞĂǀŝƐŝƚǁǁǁ ĂƵƚŽůŝŌ ŽƌŐ ŝŶƐƉĞĐƟŽŶ magenta cyan yellow black /ŶƐƉĞĐƚƚŽWƌŽƚĞĐƚΡ Your business is riding on it™ ES587260_AMB0415_045_FP.pgs 03.21.2015 01:13 ADV NEW PRODUCT LEVERLESS PERFORMANCE 2 5 3 4 6 MSRP 1 2 3 4 5 6 Who says you can’t have it all? That’s why we packed our newest R80DTXF tire changer with all the features you need to increase productivity and profts. (1) Bi-lateral bead loosener with hand control operation, (2) leverless mount-demount head - no more tire irons, (3) dual power drop rollers help keep beads in position through the entire mounting procedure, (4) fully adjustable wheel clamps handle 12”- 31” diameter wheels, (5) multi-profle traveling drop-center tool holds sidewalls in the drop-center, (6) TurboBlast™ bead seating system. The new R80DTXF also includes a full-variable speed motor that goes slow to super-speed depending on the foot pedal pressure. You’re welcome. ** $638FR5EE WITH ING!* SHIPP 1 www.bendpak.com/wheel-service • 1-800-253-2363 © 2014 Ranger Products, Inc. • BendPak, Inc. and Ranger Products are registered trademarks. *Free shipping on all BendPak and Ranger Products to most of the 48 contiguous states. **Valid at participating dealers. Prices are subject to change at any time. See it on YouTube What’s in your Garage? Your world. Our shoulders. XPR-SERIES ETL Certified 2-Post Lifts See us on YouTube www.bendpak.com 1-800-253-2363 • www.bendpak.com © 2014 BendPak Inc. • BendPak is a registered trademark. magenta cyan yellow black ES587277_AMB0415_046_FP.pgs 03.21.2015 01:14 ADV FOR IMMEDIATE ASSISTANCE IN PLACING YOUR MARKETPLACE AD, PLEASE CALL MARKETPLACE Keith Havemann at: 310-857-7634. Send a fax: 310-943-1465 or e-mail: [email protected] MANUFACTURERS REPRESENTATIVES AFTERMARKETBUSINESS.COM/SUBSCRIBE SOUTH Let Marketplace Advertising Work For YOU! Generate sales leads, maintain market presence, conduct market testing, promote existing lines, introduce new products and services, or recruit the best. Contact Keith Havemann 310-857-7634 or email [email protected] N.A. Williams Company has been providing sales and marketing solutions for its clients for over 80 years. 115 aftermarket professionals. 2900-A Paces Ferry Rd., S.E., Atlanta, GA. 30339 770-433-2282 www.nawilliams.com THE MEDIA LEADER FOR THE AUTOMOTIVE AFTERMARKET CONTINUES TO REINVEST IN OUR PRODUCTS. NEW DESIGNS, LAYOUTS AND PRINT-DIGITAL SYNERGY FOR THE MOST COMPREHENSIVE AND ENGAGING CONTENT IN THE INDUSTRY! GO TO SEARCHAUTOPARTS.COM TO SEE WHAT WE’VE SEARCHAUTOPARTS.COM TO SEE WHAT WE’VE GOT IN STORE FO GOT IN STORE FOR YOU! SEARC HAUTO PARTS .C O M 47 magenta cyan yellow black ES588378_AMB0415_047_CL.pgs 03.24.2015 20:57 ADV MARKETPLACE MANUFACTURERS REPRESENTATIVES SOUTH The GLOB AL Resource for the Automotive Aftermarket ific information Get industry-spec expand to help you build andRY MONTH! your business – EVE R E S O U R C E S www.tascosalesreps.com www.twitter.com/TASCOSALESREPS www.facebook.com/Tascosalesrepscom nal Industry News • Domestic & Internatio ts Even et mark After al • Glob Research Studies • In-Depth Monthly e • Import / Export Guid tary from Industry • Opinions & Commen eider! Schn h Mitc Experts, like e NOW ON iPhon Photo: Getty Images / Ian McKinnell (Globe) from Download FREEStore the Apple App or iPad. Content Licensing for Every Marketing Strategy Marketing solutions fit for: Outdoor | Direct Mail | Print Advertising | Tradeshow/POP Displays | Social Media | Radio & TV Leverage branded content from Aftermarket Business (E-Zine) to create a more powerful and sophisticated statement about your product, service, or company in your next marketing campaign. Contact Wright’s Media to fnd out more about how we can customize your acknowledgements and recognitions to enhance your marketing strategies. For information, call Wright’s Media at 877.652.5295 or visit our website at www.wrightsmedia.com 48 APRIL 2015 magenta cyan yellow black AftermarketBusiness.com ES588379_AMB0415_048_CL.pgs 03.24.2015 20:57 ADV www.redi-sensor.com VDO and REDI-Sensor – Trademarks of the Continental Corporation TPMS service with VDO REDI-Sensor™ was always a snap. Now it’s also available with a rubber snap-in valve stem! magenta cyan yellow black The VDO REDI-Sensor multi-application TPMS sensor has already made TPMS service faster and easier by eliminating the need for programming and cloning. Now, for service techs looking for the option, we’re also offering REDI-Sensor with a familiar rubber snap-in valve stem. And just like the original REDI-Sensor, our new rubber valve stem version is ready right out of the box! • Pre-programmed and designed to follow OE vehicle relearn procedures • Works with all major TPMS scan tools • Reduces inventory and eliminates service delays • OE designed and validated Visit: www.redi-sensor.com for more information. ES587258_AMB0415_CV3_FP.pgs 03.21.2015 01:13 ADV we don’t just STOP with pads and rotors A complete brake job is more than brake pads and rotors. 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