Automotive & HD Business Management Articles.
Bob Greenwood. July 2, 2014. ( over 2 years ago ) 448 views
They say the “Trend is Your Friend”. In running a shop business, I truly believe that. So what are some upcoming trends that WILL affect your business over the next 10 years?
Consider these trend lines:
Vehicle miles travelled has basically been flat since 2005 as people are working from home and the ones living in big cities locate in order to walk to work
They estimate a 5% growth in vehicles in operation by 2018 in North America
It took the industry 110 years to reach 50 million vehicles world-wide but it will only take 20 years to reach the next 50 million
OEM’s are changing to Global Platforms. In 2012 there were 212 platforms and by 2020 they estimate 140 platforms which will allow for the same parts to be used
In the USA, there is $68 Billion of unperformed maintenance work and in Canada there is $14 Billion
Telematics is the game changer for the next 10 years with the Connected Car and the consumer’s right to choose where their vehicle is serviced. Client relationships are more important than ever as it will be the client that gives the shop permission to read their vehicle data.
The Right to Repair issue was resolved but the new battle will be with the OEM building “closed ecosystems” because they want to own the car.
The Aftermarket must learn how to promote to the government and to the consumer their right to own their vehicle data so they can choose where they want their vehicle serviced.
Consumer education must double in the next 2 years if the Aftermarket wants to go after the $14 Billion of underperformed maintenance. It is all about safety and reliability of the vehicle.
Labour skills shortage for our sector will remain out of balance for at least the next 5 years !
So what is your business strategy because the Trend line has already started? Oh, and don’t forget to do the math as to how your strategy solution will affect the bottom line of the business.