Did you know?
|Retail sales in the automotive aftermarket are over $21 billion.||There are currently 23.4 million light vehicles registered for use on Canadian roads.|
|Direct employment in the automotive aftermarket totaled more than 400,000 Canadians in 2010 – the largest segment of the automotive industry as a whole.||There are over 20,000 unique combinations of engines and body styles on the road today.|
|40% or 90,000, of the 220,000 automotive aftermarket employees are general automotive service technicians.||The core market for the traditional aftermarket vehicle fleet is vehicles between the ages of 5 to 12 years old. The average lifespan of a vehicle in the ’60s was just under 162,000 km. Today, this is approaching 225,000 km.|
|There are approximately 29,000 traditional automotive aftermarket repair facilities in Canada – approximately 95% are owned and operated by entrepreneurs.||The Canadian automotive aftermarket is about the same size as the clothing industry and larger than the furniture industry.|
One of AIA’s mandates is to educate members in areas that impact the growth and prosperity of the industry. With that in mind, AIA continues to create surveys, compile data and reach out to the best consulting companies to provide members with reliable and practical facts they can use in their business planning activities.
Outlook Studies – AIA published the latest edition of its Outlook Study in December 2014. The biennial report, produced by DesRosiers Automotive Consultants Inc., provides an overview of the current aftermarket industry and forecasts how trends will affect the industry in the future. Among its conclusions were the following:
- Aftermarket parts and labour sales totaled over $19 billion in 2013.
- 1.74 million new light vehicles were sold in Canada in 2013; an all-time sales record.
- The average age of light vehicles in Canada is now 9.3 years.
- The outlook of the industry for the next few years is very good, which may exacerbate the industry’s labour shortage problem.
Demand Studies – Each year in Canada, a considerable amount of recommended light vehicle maintenance and repairs go unperformed, representing a threat to both automotive safety as a preventative action and the potential of the automotive aftermarket industry. The Demand Studies are a series of publications that have been commissioned to DesRosiers Automotive Consultants (DAC) in order to explore the issue of underperformed vehicle maintenance, and to calculate the total market value of this neglect in Canada.
Consumer Focus Groups
Over the summer, AIA partnered with the Canadian Automobile Association (CAA) to host eight qualitative consumer focus group sessions in Ottawa, Montreal, Toronto, and Vancouver. Participants were asked about their key considerations when it comes to automotive repairs, and they reported that:
- Safety is a central factor when considering having maintenance and/or repairs done.
- They believe that they adequately maintain their vehicles and assume that other vehicle owners are equally responsible.
- The ability to have a sincere discussion with an individual automotive technician regarding the work that must be done to ensure safety and reliability plays an important role in building trust.
Jobber Focus Groups
More than 50 jobbers participated in focus groups with AIA in the fall of 2014. They offered important insights into the challenges of jobbers and, by extension, of service providers. Their main recommendations for AIA included:
- Provide more jobber-focused communications and networking opportunities.
- Engage jobbers in outreach activities with government and industry.
- Provide tools to assist industry members running small/medium businesses and to recruit more people into the industry.
- Provide more training opportunities.
Collision Sector Business Conditions Survey – AIA has launched the first Canadian survey of collision shop sales to produce quarterly reports on the state of the industry. At present the survey is open to both networks and independent repairers and results by region are available to all contributors and sponsors.
Salaries and Benefits Survey – In 2014, AIA’s Human Resources Committee commissioned a salary and benefits survey focusing on nine key roles within the automotive aftermarket. Results are available for free for members via their member account login.