There Are A Variety Of Reasons For Optimism Across The Industry
By Gary Molinaro | June 18th, 2010 | Category: Perspective | No Comments »We are currently in the midst of a schizophrenic time in our industry. Like most businesses, overall credit is tight and manufacturing is running as lean as possible. Inventories are being managed as closely as possible and staffing levels are being kept at the barest minimums. At the same time, throughout the aftermarket, business is reported as steady if not strong and, anecdotally, many businesses in our industry have been filling vacant sales positions while many specific indicators point to an optimistic stretch ahead for the independent automotive service and parts sector.
For example, the 14th Aftermarket Business Consumer Attitude Survey is indicating strong DIY activity out there, with 73 percent of the consumer respondents to the survey stating they are installing the products they purchase. Now, with the majority of survey respondents (87 percent) being male, this could account for the strong showing in DIY activity. But, with the current economic and employment picture coupled with the age of the vehicle fleet, one would believe that DIY sales are growing.
Quarterly reports from the various parts retailers also indicate that DIY sales are on the uptick.
More pointedly, iATN released a poll of its membership indicating that 67 percent of respondents expect an increase in business in 2010. The online poll concluded in March with 4,050 votes from its more than 70,000 members. Of those responding, 50.9 percent anticipate a slight increase in business, while an additional 16.1percent foresee a dramatic increase.
A subsequent iATN poll concerning hiring expectations also indicates a positive trend. The 3,761 respondents to the poll in May indicated 29 percent were looking to hire — up from 22 percent when the same poll was taken two years prior.
And finally, from a credibility standpoint, a recent survey conducted online by Harris Interactive on behalf of CarMD.com in April found 65 percent of U.S. adults who have ever owned/leased a vehicle feel that auto mechanic/repair facilities are trustworthy. On the other side of the coin, realistically, nearly a one-third of adults who have ever owned/leased a vehicle feel auto mechanic/repair facilities are somewhat untrustworthy, and 6 percent feel they are very untrustworthy.
The survey also found that 43 percent of those who have ever used an auto mechanic/repair facility have a local mechanic they’ve trusted for years. Conversely, of those U.S. adults who have ever put off automotive maintenance/repairs, 11 percent did so because they didn’t have a mechanic/repair facility they trust.
As noted in the message with the release on the study, CarMD has recently been mistaken by many in the industry as being the same company as AutoMD, a division of U.S. Auto Parts Network, which released a study in late February ranking the best and worst cities for auto repair. That study was based on mystery shoppers, and many in the aftermarket took exception to not only the findings but the methods used in the study.
The CarMD study seems to overcome the myth perpetuated by the AutoMD study and others that our industry is not worthy of trust.
For what it’s worth, we always enjoy reporting encouraging news concerning our industry. Too often, it is easy to focus on what remains to be done, those issues we need to work on to make ours a better industry. But, it is necessary to remind ourselves often that there are reasons to take pride in our industry and to look at business with optimism.
In this case, that seems to be warranted.
