Jobber News December 2016

Jobber News BESTBUY ENCOURAGES CANADIAN AUTOMOTIVE STUDENTS • WI-FI USERS THREATEN V2V SPECTRUM DECEMBER 2016

Serving the Automotive Aftermarket Since 1931

2017 MARKET FACTS

CANADIAN MARKET FACTS J.D. POWER & ASSOCIATES

Canada Post Canadian Publications Mail Sales Agreement No. 40063170

PARTS MADE SIMPLE

Congratulations to Samantha Nault-Canning from Auto Parts Plus Warehouse Service Inc. on your well-deserved recognition!

Jobber News BESTBUY ENCOURAGES CANADIAN AUTOMOTIVE STUDENTS • WI-FI USERS THREATEN V2V SPECTRUM DECEMBER 2016

Serving Serv Se erv rvin in ng the th he Automotive Au Auto uto omo m tiv ve eA Aftermarket fterma ft ark rket e S et Since in nce e 1931 193 9311

AIA Canada Night 2016 Photo Gallery

2016 COUNTERPERSON OF THE YEAR

SAMANTHA NAULT-CANNING, Warehouse Services Inc., Leduc, Alberta

ways win the day

contents | december 2016 » vol. 84 no. 12

Jobber News Serving the Automotive Aftermarket Since 1931

regular features

6 OVER THE COUNTER 6

11 COUNTERPERSON OF THE YEAR | SAMANTHA NAULT-CANNING, WAREHOUSE SERVICES INC., LEDUC, ALBERTA

Sunny ways win the day

19

16 Automotive Aftermarket Industry Week 2016

Whether it’s a routine order they’ve placed hundreds of times, or an oddball request that requires intelligence and more than a little sleuthing to track down, shops all around Leduc, Alta. count on Warehouse Services Inc.’s Samantha Nault-Canning to find it for them, with her usual good cheer.

18

in this issue Canadian market facts J.D. Power and Associates

The level of activity at AAPEX on opening day and throughout the week was notable. Held Nov. 1-3, 2016 at the Sands Expo in Las Vegas, the show offered attendees the opportunity to view thousands of new products in every category, and meet plenty of new and current suppliers over the threeday show period.

40 AIA Canada Night 2016 photo gallery

Total Canadian Market . ................................................. . . . . 19 Average Repair Bill ...... ................................................. . . . . 21

Mirroring technology makes your car work like your smartphone; Bestbuy encourages students in the Canadian automotive industry; Dayco names Charles R. Baker senior VP; Auto Care Association identifies Alibaba as notorious market for counterfeits; Drivers concerned about night driving; Lordco’s Ed Coates Memorial Foundation contributes $20,000 to automotive education.

21

Lube, Oil & Filter .......................................................... . . . 22 Transmission Service ... ................................................. . . . 24 Brake Service ............. ................................................. . . . 26 Suspension Alignment Service ..................................... . . . 28

departments

Tire Replacement ....... ................................................. . . . 30 Tire Repair & Maintenance ............................................ . . . . 31 Battery Replacement ................................................... . . . 32

4 42

UpFront Employee recognition

42 Social Media 101

Engine/Fuel System Service ......................................... . . . 34

Next to your website, your company’s Facebook page is one of your most important online marketing tools.

Electrical Work ............................................................. . . . 36 Audio/Entertainment Repair ......................................... . . . 38 Heating, Ventilation, and A/C ........................................ . . . 39

43 Advertisers Index 44 Money & Management Cover image: Vladimiroquai, iStockphoto.com

|

Twitter: Steve Pawlett (@JobberNews) |

JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

44

Preparing for negative interest rates

www.facebook.com/pages/AutoServiceWorldcom/244916465611841

3

upfront |

with steve pawlett, editor » spawlett@jobbernews.com

Jobber News

FOUNDED 1931

EMPLOYEE RECOGNITION

Y

ou need great employees to grow your business.

A lot of time and money is spent finding, then training, good team members. Sadly, that investment often goes to waste, because owners and managers don’t realize the enormous value and return they could get from regularly showing employees their appreciation.

According to a recent survey, lack of appreciation is the number-one reason employees leave their jobs. It’s not benefits, bonus structure, or salary; it’s simply feeling According that hard work is not recognized or appreciated. to a recent It sounds simple enough, but the reality is that most survey, lack of of us have trouble with both giving and receiving appreciation is appreciation. For instance, think about the last time the number- someone paid you a compliment. If you’re like the one reason average person, you probably shrugged it off with a employees dismissive comment. “You like my shirt? Oh, this old leave thing?”

A response like this makes the person who their jobs. complimented you feel less than great and less likely to compliment you again. The correct response to a compliment is always a simple “Thank you.” Try it next time.

Giving and receiving appropriate appreciation is a skill most business owners and store managers should exercise far more often than they do. You can never over-appreciate your employees. Appreciation is a muscle that you can build.

A recent survey from Globoforce finds that appreciation and recognition in the workplace isn’t happening nearly enough. A staggering 40% of employees surveyed say they weren’t recognized at all over the past year. Business owners stand to benefit enormously from appreciating their employees.

By creating a constant flow of recognition, employers can effectively produce a sense of well-being, trust, optimism, and confidence among employees that will propel company culture forward.

Employee happiness has become an important and growing business concern over the past few years, as more and more companies recognize the benefits of having not just satisfied and engaged employees – but also employees who are happy and in a positive mind-set. Findings from the new survey show a direct correlation between appreciation and happiness. Some 86% of employees say they feel happier and prouder at work as a result of being recognized, while 85% say recognition made them feel more satisfied with their jobs. Additionally, 70% of employees say recognition made them feel happier at home. While employee happiness can often be overshadowed by a focus on bottom-line gains, senior leaders who put a greater emphasis on happiness as a key company metric will see a direct correlation to profitability.

More than ever, culture is a competitive differentiator, and a key part of attracting, engaging, and ultimately retaining employees. This ideal culture puts people first and is predicated on all of the metrics listed above: humanity, happiness, and trust. Without these characteristics, companies will find themselves at a disadvantage, as culture reminds employees of their worth as individuals and makes them feel more committed to a company. By creating a culture of consistent recognition and appreciation among managers and peers, you’ll in turn create a culture that employees will want to stay with. JN

4

Jobber News is Canada’s longest-established publication serving the distribution segment of the Canadian automotive aftermarket.

It is specifically directed to warehouse distributors, wholesalers, machine shops, and national accounts.

Editor | Steve Pawlett (416) 510-6839 E-Mail: spawlett@jobbernews.com Contributing Editor | Martha Uniacke Breen E-Mail: mubreen@sympatico.ca Contributing Writers | Andrew Brooks, Mark Borkowski, Tom Venetis Art Director | Barbara Burrows Managing Director, Auto Div. & National Sales Kathryn Swan (416) 510-5221 E-Mail: kathryn@newcom.ca National Sales | Juan Diez (416) 510-5203 E-Mail: juan@newcom.ca Quebec & Eastern Canada Sales Director Denis Arsenault, (514) 947-7228 E-Mail: denis@newcom.ca Advertising Production Manager, Print/Digital Alicia Lerma (416) 442-5600 ext. 3588 E-Mail: alicia@newcom.ca Print Production Manager | Phyllis Wright (416) 510-6786 Circulation Manager | Lilianna Kantor (416) 614-5815 E-Mail: lily@newcom.ca

Jobber News is published by Newcom Business Media Inc. All rights reserved. Printed in Canada.

The contents of this publication may not be reproduced or transmitted in any form, either in part or full, including photocopying and recording, without the written consent of the copyright owner. Nor may any part of this publication be stored in a retrieval system of any nature without prior consent.

Canada Post Canadian Publications Mail Sales Product Agreement No. 40063170 “Return Postage Guaranteed” Send change of address notices, undeliverable copies and subscription orders to: Circulation Dept., Jobber News, 80 Valleybrook Drive, Toronto, ON M3B 2S9 Jobber News Magazine (ISSN#0021-7050) is published monthly by Newcom Business Media Inc., 80 Valleybrook Drive, Toronto, ON M3B 2S9 From time to time we make our subscription list available to select companies and organizations whose product or service may interest you. If you do not wish your contact information to be made available, please contact us.

Chairman and Founder | Jim Glionna President | Joe Glionna Vice President, Operations | Melissa Summerfield Controller | Anthony Evangelista Director of Circulation | Pat Glionna

Corporate Offices Head Office 451 Attwell Dr., Toronto ON M9W 5C4 Phone: 416-614-2200 Fax: 416-614-8861

Regional Office 80 Valleybrook Dr., Toronto ON M3B 2S9 Phone: 416-442-5600 Fax: 416-510-5169

“We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage”.

Association of Business Publishers 205 East 42nd Street New York, NY 10017

ISSN 0021-7050 Online 1923-3477

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

ProMax... leading in durability and great performance.

Ceramic Plus Brake Pads

Severe Duty Metallic Brake Pads

Ceramic Brake Pads

New Brake Shoes

Rotors and Drums

Semi Metallic Brake Pads

Premium Brake Rotors

Premium Brake Drums

High Carbon Cross Drilled Rotors

Precision Brand Precision Engineering Precision Performance ÂŽ

www.autopartsdepot.ca

over the counter | ED COATES MEMORIAL FOUNDATION CONTRIBUTES $20K TO AUTOMOTIVE EDUCATION Lordco Parts Ltd.’s co-founder Ed Coates

Bestbuy is Encouraging Students in the Canadian Automotive Industry Bestbuy Distributors is launching a Student Scholarship Program effective immediately for young people with bright minds and enthusiasm who are pursuing a future in the Canadian automotive industry.

“As part of Bestbuy’s commitment to give back and encourage future growth and longevity in our industry, we will be awarding up to four $2,500 scholarships annually to promising young people within our Bestbuy family that have a future in the Canadian automotive business,” says Bestbuy Distributors president Jeff Van de Sande.

Complete program details can be found at www.bestbuydistributors.ca.

had deep roots in his community, and held a strong belief in giving back locally in addition to sustaining the automotive industry as a whole.

With his spirit in mind, Ed’s wife and children formed the Ed Coates Memorial Foundation, in hopes of creating a bold, creative, and inventive organization to carry on his legacy. The Foundation was started in February 2014 after Ed Coates suddenly passed away from pancreatic cancer.

The sole purpose of the foundation is to provide grants to local organizations that have programs benefiting communities or charities within British Columbia. Through scholarships, bursaries, and other forms of financial assistance for students, the Ed Coates Memorial Foundation is focused to support entrepreneurship and career building within the automotive industry.

On October 27, 2016, founding chair and wife of Ed Coates, Marlyn Coates, alongside her son and daughter, Ian Coates and Candace Gottschalk, handed over $20,000 to the Maple Ridge School District 42 to help fund automotive programs in its secondary schools.

“My dad was big on giving to the community, and giving to Maple Ridge. The automotive field is something that we’re all passionate about and we want to involve kids as much as we can,” said Candace Gottschalk, director of the Ed Coates Memorial Foundation, at the presentation.

“It is wonderful to have community support so that our students will have the best possible opportunities to learn practical skills that will lead them to fulfilling and well-paying careers.

Follow us on Twitter.

On behalf of School District 42, I would like to express my gratitude to the Ed Coates Memorial Foundation for its generous support,” said Steve Wiebe of Maple Ridge School District 42.

The Ed Coates Memorial Foundation will continue its support to Vancouver Community College, Kwantlen Polytechnic University, and BCIT through its scholarship and award programs.

Through a number of fundraising initiatives put on

by Lordco Parts Ltd., as well as local community events, the livelihood of the foundation survives on donations and sponsorships. At this time, the foundation is looking for annual sponsors to be featured on its website and personal contributions to help expand their bursaries, scholarships, and awards to more automotive programs and students within British Columbia. If you are interested in pledging your support to the Ed Coates Memorial Foundation, please contact the foundation at 604-476-4202 or visit online at http://www. edcoatesfoundation.org.

Get AutoServiceWorld.com news and more by following JobberNews on Twitter.

LuK has earned a reputation for the highest quality clutch products. p s. What LuK is to clutches, FAG is to bearings.

Building on a 130-year heritage of excellence, FAG products are supported by the same trusted R & D, engineering and manufacturing teams that bring you LuK clutches.

SHARE THE ROAD 6

FAG products — setting the standard for quality, durability, and performance.

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

MIRRORING TECHNOLOGY MAKES YOUR CAR WORK LIKE YOUR SMARTPHONE Owners want their vehicle technology

to interact with and “mirror” their smartphone, and those desires are closer to reality than ever, according to the recently released J.D. Power 2016 Smartphone Automotive Mirroring (SAM) Report.

“Consumer demand is increasing for more advanced in-vehicle connectivity, and the technology is there, but the integration is far from seamless,” says Kathy Rizk, director of automotive consulting at J.D. Power. “Owners want their vehicle systems to become an extension of their smartphone experience, with the same speed, responsiveness, and functionality.

But early feedback is mixed, and J.D. Power consultants have independently uncovered significant concerns with some of the current market executions.”

Rizk said that when smartphone mirroring technology doesn’t function the way owners expect it to, they are more likely to blame the automaker than their personal device. Since 2013, the two most prevalent problems reported are Bluetooth pairing/poor connectivity and problems understanding voice commands, outpacing other problems by a wide margin. In 2016, those two issues alone combined for an average of 14 problems per 100 vehicles (PP100).

Smartphone mirroring technologies can greatly magnify these problems when poorly executed. An independent analysis

by J.D. Power consultants of the same systems measured in the 2016 U.S. Initial Quality Study substantiates these types of issues. The SAM Report discusses that analysis and also provides insights into the various integration executions that are currently being used.

“These issues are compounded by the fact that the presence of smartphone mirroring technology is in a vehicle – and the hope that it will improve the user experience – is often a key purchase decision factor for many owners,” says Rizk. “When this technology does not function as well as expected – and, in fact, creates new and unique problems – owners are understandably frustrated.”

As desire for the technology does not seem to be diminished by the problems owners face with it, demand is expected to continue to grow. In fact, while only 10 vehicle brands offered one or both Android and Apple technologies in select 2016 model-year vehicles in this year’s

automakers that can get smartphone mirroring right have the potential to reduce problems and improve satisfaction.

And with driver distraction increasingly becoming an area of concern, it is more important than ever to strike the appropriate balance between owner demand for feature contenting and keeping driver distraction minimized.”

U.S. Initial Quality Study, the number of brands and models offering the technologies has increased substantially for the 2017 model year, with many models slated to introduce smartphone mirroring technology in the future.

Rizk concludes, “The likely result is

Electric Water Pumps

Water Pumps

Thermostats

Fan Pulley Brackets

Clutch Hydraulics

Vacuum Switching Valves

JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

Hydraulic Belt Tensioners

Free Wheel Hubs

Manual Transmissions

Power Back Door Actuators

Inverter Water Pumps

Shift Actuators

Oil Pumps

Fan Blades

Fan Clutches

Clutch Kits

ABS Speed Sensors

Oil Control Valves

Variable Valve Timing Gears

Form-In-Place Gaskets

Timing Belt Kits

Ride Height Sensors

Timing Chain Covers

Electronic Throttle Bodies

Automatic Transmission Fluids

Door Lock Actuators

Antifreeze Coolant (Pink & Blue)

“Constantly Building Upon Our Own Innovations” www.aisinaftermarket.com

ADS#18416

7

over the counter | AUTO CARE ASSOCIATION IDENTIFIES ALIBABA AS NOTORIOUS MARKET FOR COUNTERFEITS

“

Counterfeit auto parts represent a significant danger to the safety and welfare of the general public, and also pose a significant economic threat to the auto care industry.

”

The Auto Care Association has submitted comments urging the Office of the U.S. Trade Representative (USTR) to relist Alibaba and its family of e-commerce platforms, including Taobao and Aliexpress, as notorious markets that facilitate the sale of counterfeit auto parts.

The letter was submitted as part of the USTR’s request for comments in identifying Internet and physical markets based outside the United States that engage in copyright piracy and trademark counterfeiting, for its annual Special 301 Out-ofCycle Review of Notorious Markets Report.

“Although Alibaba had been removed from the Notorious Markets list in recognition of efforts to address counterfeit activities,” says Bill Hanvey, president and CEO, Auto Care Association, “we remain very concerned with the drastic amount of counterfeit automotive products sold on these sites daily and the difficulty our members are experiencing in obtaining enforcement.”

The Auto Care Association submitted comments in response to member complaints regarding the proliferation of online supply chains based in

China that allow the online distribution of counterfeit parts. These online B2B and e-commerce sites advertise branded counterfeit products for sale at rates that significantly undercut the margins of members’ original products.

Counterfeit auto parts represent a significant danger to the safety and welfare of the general public, and also pose a significant economic threat to the auto care industry. In its letter, the Auto Care Association outlined general principles that Alibaba should adopt to address the proliferation of counterfeit products on its various platforms.

The Auto Care Association commends the USTR’s efforts to combat piracy and counterfeiting.

The association looks forward to continuing this dialogue with the USTR and representatives from the identified websites to protect and enforce intellectual property rights.

APPOINTMENTS

Dayco Names Charles R. Baker Senior VP Dayco has announced that Charles (Charlie) R. Baker has joined the company as senior vice-president of research, development and engineering (RD&E) and program management.

Baker brings more than 35 years of experience in product development, program management, and engineering to Dayco. He will lead Dayco to further develop and implement technology and product platforms designed to improve performance, generate growth opportunities, and exceed both customer and company requirements.

Don’t want tunnel vision?

See the whole picture with ANCO®.

ANCOwipers.com ©2016 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.

8

Before joining Dayco, Baker served as executive director of product marketing for General Motors’ (GM) Gem program, a portfolio of vehicles for China, Brazil, Mexico, and other global markets. He was responsible for crafting a winning strategy focused on the customer as well as efficiency of development and capital for this portfolio of vehicles.

Prior to this, he held executive leadership positions in engineering and product development at Honda Motor Company, Johnson Controls, and Harley-Davidson. Baker led five vehicle developments at Honda as chief engineer, including the award-winning 2001 Acura MDX, as well as development of the 2003 Accord in Japan. He eventually had overall responsibility for vehicle development in North America as vice-president of Honda R&D Americas.

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

DRIVERS CONCERNED ABOUT NIGHT DRIVING A new survey released from Sylvania Automotive Lighting found that more than two-thirds (70%) of drivers are increasingly concerned about driving at night.

Conducted online in June 2016 by KRC Research on behalf of Sylvania Automotive Lighting, the findings indicate that the majority (62%) of approximately 1,000 motorists surveyed occasionally avoid driving during evening hours due, in part, to the following concerns: Z Difficulty seeing hazards and other drivers (28%) Z Discomfort with other vehicles’ headlights and brake lights (26 %) Z Decreased trust in other drivers’ abilities at night (25%)

“Do you want to see better when driving at night? Most people answer yes but do not know there are choices and don’t act on it if they do know,” says Brian Noble, marketing manager at Sylvania Automotive Lighting. “Headlights are an active safety item and the first line of defence on a vehicle, especially during evening hours, when roads are dark and dangerous. If drivers cannot see objects on the road, they cannot react.

Every second counts and can make all the difference. If you can see an object sooner, you can make a better decision.”

When it comes to headlight maintenance, the survey found that more than one-third (34%) of drivers have never changed out their headlights.

THE PERFECT FIT, EVERY TIME.

As a comparison, these motorists have replaced their vehicle’s oil (95%) and windshield wipers (87%), proving that headlights are an overlooked component during vehicle maintenance. Making matters worse, 63% of respondents admitted they would only plan to replace one burned-out headlight instead of both at the same time, a common mistake among drivers on the road today.

Noble advises: “Be sure to always swap headlights out in pairs – they are on the same amount of time; and don’t wait until burn-out for a replacement. Headlights dim over time, so if you can’t remember the last time they were changed, now is probably a good time to consider a replacement.”

ACCESSCOVER.COM NEW LOMAXCOVER.COM

TESTED. TRUSTED. GUARANTEED.

AMERICAN MADE

JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

9

Loading...

If you thought AAPEX 2016 was an unbelievable experience, just you wait. .OÀDOUBT À!!0%8À ÀWASÀAÀWALL TO WALL ÀSTART TO ˰NISHÀGREATÀEXPERIENCE À !NDÀWHILEÀWEœREÀSADÀTOÀSAYÀITœSÀOVER ÀWEœREÀHAPPYÀTOÀREPORTÀTHATÀ!!0%8À À ISÀLOADINGÀUPÀRIGHTÀNOWÀANDÀLOOKINGÀBETTERÀEVERYÀDAY À.EWÀTECHNOLOGY À.EWÀ PRODUCTS À.EWÀCONNECTIONS 3AVEÀTHEÀDATE À 4OÀLEARNÀMORE ÀVISIT ÀWWW AAPEXSHOW COM

AAPEX 2017, October 31–November 2, at the Sands Expo in Las Vegas.

BY MARTHA UNIACKE BREEN

ways win the day Photos: Kelli Scherr, In My World Photography

SAMANTHA NAULT-CANNING

Jobber News’ 2016 counterperson of the year |

SAMANTHA NAULTCANNING, WAREHOUSE SERVICES INC., LEDUC, ALTA.

“

Samy’s always pleasant, forthcoming and timely whenever we deal with her. We’ll give her a task or a complicated order and we know she’ll list it out quickly and have a confirmation email out in a few minutes. And she’s great to deal with! I’ll razz her good sometimes, and she’s always got a great sense of humour. I’ve never known her to have a bad day.

JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

”

– BLAIR ACORN, GENERAL MANAGER, OK TIRE LEDUC

continues on page 13

11

Jobber News’ 2016 counterperson of the year |

Chris MacLean, manager of the Leduc branch, and WSI owner Scott Scherr with Samantha Nault-Canning.

“

Samy’s just awesome! When I first started in this job 3-1/2 years ago, she was really helpful and patient with me.

I would explain what I wanted, and she would ask a few questions if necessary, then help me find exactly the right part.

She’s always just a very happy person, and really knows her stuff.

W

hether it’s a routine order they’ve placed hundreds of times, or an oddball request that requires intelligence and more than a little sleuthing to track down, shops all around Leduc, Alta. count on Warehouse Services Inc.’s Samantha NaultCanning to find it for them with her usual good cheer. Samantha was the overwhelming favourite to receive Jobber News’ 2016 Counterperson of the Year award.

In fact every person who wrote or spoke to us about Samantha pointed out two aspects of her character: that she has a depth of knowledge and experience with automotive parts that’s impressive, especially for someone so young; and that her outgoing, sunny personality makes her a pleasure to deal with day after day.

Samy grew up in Beaumont, a mid-size town about 33 km south of Edmonton, a stone’s throw away from Leduc. Cars were in her blood, she says, right from the start. “My dad did all his own work on his truck and was always showing me how to fix things – this was my idea of fun!” She has fond memories of the classic baby-blue 1975 Dodge Charger he fixed up in his spare time. “It was the best car in the world!” she laughs.

Samantha’s automotive education started at Beaumont High, where she took mechanics courses from grades 10 through 12, and excelled at them. After graduation, she had a few typical starter jobs; but vehicles, she says, were always in her heart.

Maybe there’s something about the West that breeds excellent women counterpersons, or specifically one of Warehouse Services Inc.’s strengths is hiring exceptional people, regardless JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

– DIANE NIELSEN, BEAUMONT AUTOMOTIVE

”

of gender. Launched by Wayne Scherr in 1987 after a colleague sold him its exhaust inventory, WSI expanded rapidly after Wayne’s son Scott took over in 1992, and now comprises seven locations and some 80,000 square feet of warehouse space. WSI is no stranger to this magazine’s awards presentations; WSI was Jobber News’ 2011 Jobber of the Year.

Perhaps not coincidentally, JN’s 2008 Counterperson of the Year, Mary Mackie, happened to be the mom of a close friend of Samy’s. In 2006, Mary mentioned that the company was hiring, and suggested that Samy go down and apply. She was hired the next day, and began working in WSI’s warehouse. But she moved up through the ranks quickly: after two years, she was promoted to dispatch, before landing on the order desk at the Leduc branch, where she has thrived for the past six years.

“I started at WSI doing stock orders, putting parts away, cleaning, and things like that,” Samy recalls, “but I was looking at other positions from the beginning. The mechanical side, fixing cars, was not really for me. What really interested me was the customer service side, the people part of it.”

But it’s more than her talent for people that makes Samy a winner both with customers and with her colleagues and managers at WSI. A few years ago, she enrolled in Northern Alberta Institute of Technology (NAIT)’s Automotive Service Technician course, a comprehensive three-year program that provides training in all aspects of automotive parts and technology, and WSI supported her education, allowing her to take a day off every Thursday to attend classes each semester.

13

Jobber News’ 2016 counterperson of the year |

“

I’ve been working with Sam for the last 2-1/2 years, and I wouldn’t trade her for anything. She’s excellent at what she does, and takes a lot off my plate. In this day and age, recognition doesn’t always come often enough, and you only hear the negatives; but a lot of our customers appreciate and love her – and I totally agree with them.

”

– CHRIS MACLEAN, MANAGER, WSI LEDUC

“I wanted to learn more about parts, to further my knowledge in areas such as heavy duty and industrial, as well as light duty. They really teach you about every aspect: warehousing, managerial duties, shop planning – everything you need to know about this business. It’s also very hands-on; you get to see the parts, try them and really understand how they work.”

Nowadays, she also keeps herself current by reading everything she can get her hands on, from catalogues and updates, to magazines like Jobber News, along with ongoing training from suppliers. In a business as fast-changing 14

as the automotive aftermarket, she knows, it’s critical. In the ten years she’s been a professional in this industry, she says, there have been quite a few changes.

“One thing I’ve noticed in particular is there are more DIYers than in previous years; I see a lot of people wanting to rebuild old cars rather than buying new.

It’s partly the challenge of it, I guess, or the economy. But also, in this industry, it seems like new cars have more problems because there are so many more electronics. Older cars are more plain-jane, so maybe there’s less to go wrong.”

On the whole, she adds, older cars last longer as well – she’s more likely to see simple wear-and-tear problems like suspension with older cars, whereas a lot of the new ones tend to have problems with engines and other electronics-related components. “But the older technology,” she laughs, “just can run forever!”

“I really like working in the aftermarket, as opposed to a dealership, because it’s

The Leduc branch staff (left to right): Katelyn Berryman, Jodie Poirier, Carey Mc Crea, Mark Dube, Scott Scherr, Alex Robb. (Front Row:) Chris MacLean, Samantha Nault-Canning.

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

Congratulations “

She’s an absolute pleasure to work with.

Every time you call her, she has the best attitude you can have; she’s always in good spirits. The one thing you can’t train into a person is a good work ethic, and she has that.

She just gives it her all.

I think she’s destined for great things in the future.

Samantha Nault-Canning, Warehouse Services Inc., 2016 Counterperson of the Year From the following proud partners:

”

– SCOTT SCHERR, OWNER, WAREHOUSE SERVICES INC.

a lot more interesting,” she goes on. “You get to work with a very wide variety of cars and other types, such as heavy duty.

Leduc has a lot of farms in the area, so we also get calls for parts for farming equipment, tractors. We get all kinds of requests – we even got a call for parts for a Zamboni once.”

Samy’s order desk runs on Eagle Browser. “It’s very informative, though it has its challenges,” she says. “But it’s great for newer people coming up, because it shows you the breakdown of the parts and little bits of information about them, which is useful. We have a new person here, Katelyn, who is learning from it, and the updates are excellent.”

Given her NAIT training, and the variety of parts requests she receives at the order desk, she could see opening her own store one day. But today, working with manager Chris MacLean and her colleagues, and the customers she deals with every day, she calls working the order desk at WSI a dream job.

“I love the staff that I work with, and I love the customers. That’s probably one of the main reasons I love what I do. Here in Leduc, the whole town is like one big family. If a customer walks in or calls and you remember their name, they’re just really happy.

“I’m very thankful that, ten years ago, Mary Mackie told me to come and apply for a job here.” JN JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

THE OBVIOUS CHOICE FOR THE PROFESSIONAL

15

aapex report |

AUTOMOTIVE AFTERMARKET INDUSTRY WEEK 2016 AAPEX Sees Increased Activity

Raybestos Names Mustang Sweepstakes Grand Prize Winner

T

he level of activity on opening day of the Automotive Aftermarket Products Expo, held Nov. 1-3, 2016 at the Sands Expo in Las Vegas, was notable, and stayed high throughout the week.

Showgoers had the opportunity to view thousands of new products in every category, and meet plenty of new and current suppliers over the three-day show period. Everywhere you looked, booths were busy with people talking business.

Several exhibiting manufacturers also hosted product training seminars, where participants could see and hear first-hand about technical applications of the new products being unveiled.

Also, education has always been a staple of AAPEX and this year was no exception, with sessions packed with attendees listening to leading experts, who were brought in to teach new skills, share strategies, and provide insights into future trends, technological challenges, and opportunities for the aftermarket.

Vincent Cerra of Cerra Automotive in Greensburg, Pennsylvania, hit the jackpot as the lucky winner of the Raybestos 1969 Mustang, the company announced during a special reception at AAPEX. As part of his grand prize, Cerra received a trip to Las Vegas to attend AAPEX. Renowned builder Jeff Schwartz, who directed the Raybestos Mustang restoration project at his shop, Schwartz Performance in Woodstock, Illinois, was on hand to congratulate Cerra on winning the one-of-a-kind iconic muscle car. Also in attendance for the festivities were Cerra’s father Sal and brothers Sal, Nick, and Mike.

“We congratulate Vincent as the grand prize winner of the custom-built Raybestos ’69 Mustang and thank him for installing the best in brakes,” said Kristin Grons, marketing manager for Brake Parts Inc.“As a professional technician working in the family business, we know Vincent appreciates the unmatched quality of the parts and workmanship that went into restoring this outrageous muscle car that he will now call his own.”

AAPEX Buyers Select Winners in 2016 New Product Showcase

Gates Receives Three Awards

Pre-registered AAPEX buyers determined the winning entries in nine categories by voting electronically for their favourite products.

This year’s New Product Showcase winners are:

• •

Business Tools & Services:

Blue Sage Software, Pacesetter Plus.

ITW Global Brands, Slime Pro-Series

Accessories & General Merchandise:

Super Duty Inflator.

• • • • • • •

Dupli-Color/VHT, Dupli-Color Custom Wrap Removable Coating, Neon.

Automotive Lighting: SBI Smart Brands International (America) Ltd., Michelin Tri-Light Flashlight Series.

Chemicals, Lubricants & Filters: Penray Companies Inc., Catalytic Converter Cleaner 2901.

Hard Parts: Federal-Mogul Motorparts, Moog Complete Pre-Assembled Steering Linkage.

Technology: Mahle Service Solutions, SmartACX Mobile Phone App. Safety: Wagan Corporation, FRED Light 2.0.

Tools & Equipment: JohnDow Industries, Tire Taxi.

Appearance Chemicals & Car Care:

16

The Automotive Aftermarket division of Gates Corporation received three Automotive Communications Awards at the Car Care Council Women’s Board Press Conference.

The Car Care Council Women’s Board recognized Gates Corporation in the following categories: • Facebook Customization: Be System Smart Sweepstakes • Media Outreach to Female Audience: 2016 Sarah Burgess Sponsorship • Application of Be Car Care Aware Logo: Inspection Challenge Scratch Card “Creating the right marketing collateral for our different audiences is something we pride ourselves on,” said Jack Ramsey, senior vicepresident, North American aftermarket.“We are thrilled to receive these awards, which are judged by our peers, and view them as validation of our marketing efforts.”

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

SEMA Award Recognizes Top Trending Vehicles Held simultaneously with AAPEX was the Specialty Equipment Marketing Association Show. One of the highlights, launched in 2010, is the SEMA Award, the SEMA Show’s definitive OEM award – shining a light on the hottest vehicles that showcase and launch new aftermarket parts. Presented in five categories, they are: Hottest Coupe, Hottest Sedan, Hottest Hatch, Hottest 4x4-SUV, and Hottest Truck.

This year’s SEMA Award winners are:

• • •

– Ford Mustang – Dodge Charger Hottest Hatch – Ford Focus Hottest Coupe Hottest Sedan

• •

– Jeep Wrangler – Ford F-Series “The SEMA Show is the place where the newest and most innovative aftermarket products debut,” said Chris Kersting, SEMA president and CEO. “And SEMA Show exhibitors are the innovators and visionaries who help guide future trends in the industry.”

The SEMA Award heightens awareness for aftermarket products, and it is an example of the industry’s partnership between automakers and aftermarket manufacturers. JN Hottest 4x4-SUV Hottest Truck

“Tenneco Experience” Makes First Appearance at AAPEX Tenneco introduced its “Tenneco Experience” mobile product and technology exhibit to the vast audience of automotive parts and service professionals who attended the Automotive Aftermarket Products Expo.

The custom-designed 53-foot trailer features an array of hands-on exhibits covering Tenneco’s Clean Air and Ride Performance OE technologies for global vehicle manufacturers, as well as a full complement of the latest Monroe ride control and Walker emissions control products for the North American aftermarket.

Among the OE technologies on display in the “Tenneco Experience” trailer are complete emissions control systems for automotive gasoline and diesel engines.

Highlighted within these systems are Tenneco’s manifold-mounted catalytic converters; air gap pipe; XNOx Selective Catalytic Reduction (SCR) system; threeway catalyst; diesel particulate filter; and electronically controlled valves, which support low pressure exhaust gas recirculation (EGR) for diesel engines and acoustic tuning for gasoline engines.

JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

17

The world demands them.

The USA builds them.

$V WKH GHÀQLWLYH OHDGHU LQ LQQRYDWLYH EHVW LQ FODVV FHUDPLF GLVF SDG EUDNLQJ VROXWLRQV $NHERQR LV SURXG WR PDQXIDFWXUH SHUFHQW RI RXU DIWHUPDUNHW SDGV ULJKW KHUH LQ WKH 86$ $NHERQR·V 3UR$&7® (852® DQG 3HUIRUPDQFH® 8OWUD 3UHPLXP EUDNH SDGV DUH WKH EHVW UHSODFHPHQW EUDNHV LQ WKH ZRUOG IRU FOHDQ TXLHW DQG VPRRWK EUDNLQJ 2(0·V FKRRVH $NHERQR \RX FDQ WRR

• +LJKHU FXVWRPHU VDWLVIDFWLRQ • )HZHU FRPHEDFNV • ,QFUHDVHG ED\ XWLOL]DWLRQ • *UHDWHU SURÀWDELOLW\ IRU WHFKQLFLDQV

'HPDQG WKH 2(0 EUDQG RI FKRLFH IDFWRU\ LQVWDOOHG RQ PRUH WKDQ PRGHOV

Demand Akebono.

FACTORY INSTALLED

akebonobrakes.com Find us on Facebook facebook.com/akebonobrakes

3 0+ 350 MODELS

OEM BRAND OF CHOICE

cover feature | J.D. Power overall market facts 2017

2017

MARKET FACTS

Mean kilometres on vehicle by customers’ most recently visited facility

Illustration: erhui1979. iStock.com

J.D.

Power and Associates has been a respected supplier of data to the Jobber News Annual Marketing Guide for years. In 2015, some important changes in the way it reports data were made. These changes were made to increase the accuracy of the data and provide more consistent numbers from year to year.

A number of new categories were added.

The Tire category is now broken into Tire Repair, Tire Replacement, and Tire Maintenance, to better reflect the expanded services required in this category. There also is now a category for Heating, Ventilation, and A/C, and a category for Audio/Entertainment System Repair.

This new, expanded reporting method provides more details indicative of technological changes in the marketplace.

Due to these changes, some numbers may appear to be different from those reported prior to 2015, so readers should not compare numbers from that time period with the numbers published in this, the 2016/2017 Annual Marketing Guide.

As with the average kilometres driven, the total number of kilometres on a vehicle is a strong indicator of the types of service that may be required.

However, the average number of kilometres, which has been on the increase for several years now, shows a slight decline.

The average total number of kilometres on vehicle odometers is 111,621, down slightly from 114,784 in 2015.

In the Branded Aftermarket category, the figure is virtually unchanged at 123,001 in 2016 compared to 123,407 in 2015.

While Independent Repair Shops continue to receive vehicles with more kilometres, this category also shows a significant drop, to an average of 129,664 in 2016 compared to 138,313 in 2015.

Dealerships also experienced a slight decrease in kilometres driven. This group went from 102,532 in 2015 to 100,355 in 2016.

Kilometres on vehicles by customers’ most often used facility

JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

30,000 60,000 90,000 120,000 150,000 Dealerships

2016: 100,355

2015: 102,532

Branded Aftermarket

2016: 123,001

2015: 123,407

Quick Lube

2016: 126,603

2015: 126,505

Independent Repair Shops

2016: 129,664

2015: 132,548

INDUSTRY AVERAGE

2016: 111,621

2015: 114,784

19

cover feature | J.D. Power overall market facts 2017

Share of service occasions performed by vehicle age (%) Dealerships saw a significant decrease in their share of business, coming in at 44.4%, down from 47.9% in 2015. Independents saw a slight increase to 25.2%, up from 24.3% in 2015. This appears to be totally at the expense of the Dealership category. Interestingly, Independent outlets continue to lose market share with vehicles that are eight to 12 years old, dropping to 25% from 31.3% in 2015, and in the four-to-seven-year-old vehicle category, independent outlets dropped almost three points, to 16.4% from 19.3% in 2015.

4-7 yrs.

2016 2015

8-12 yrs.

2016 2015

industry avg.

2016 2015

Total car dealers

53.1

51.6

35.5

32.7

44.4

42.3

Total branded aftermarket

15.6

15.8

20.7

20.0

18.1

17.9

Total quick lubes

8.8

7.9

10.8

8.9

9.8

8.4

Total independents

16.4

19.3

25.0

31.3

20.7

25.2

6.1

5.4

7.9

7.1

7.0

6.2

All other establishments

Type of service performed by vehicle age

4-7 yrs.

2016 2015

8-12 yrs.

2016 2015

industry avg.

2016 2015

LOF

42.3

42.5

40.2

32.7

41.2

42.3

Other scheduled maintenance

4.6

7.6

3.9

20.0

4.2

17.9

Brakes

7.8

8.6

8.6

8.7

8.2

8.6

Engine/fuel system

2.9

3.2

4.0

3.8

3.5

3.5

Alignment

4.1

4.4

4.4

4.3

4.3

4.4

Tires

21.1

21.1

20.8

20.4

21.0

20.7

Other services

17.0

12.7

18.2

13.5

17.6

13.1

As has perennially been the case, the most frequent service called for is Lube, Oil, and Filter service.

However, service for this category shows declines across the board. In the four-to-seven-year-old category, it dropped to 42.3% in 2016 from 42.5% in 2015. In the eight-to-12-year-old category, it dropped to 40.2% in 2016, from 40.5% in 2015.

Clearly, the trend among newer vehicles for extended oil change intervals is affecting this market. Aside from the catchall of “other service,� the next most popular visit is for tire service, which increased to 21% in 2016, from 20.7% in 2015.

Average repair/service bill: customer paid ($) by vehicle age Owners of four-to-seven-year-old vehicles spent, on average, $3 less this year.

Dealerships are up $5 to $253 and the Branded Aftermarket is up $10, while Independent Repair Shops went up $13 from $232 in 2015 to $245 in 2016. The most notable change comes from Quick Lubes, which are down significantly, going from a record high of $236 in 2015, to $168 in 2016.

20

4-7 yrs.

2016 2015

8-12 yrs.

2016 2015

Industry average 2016 2015

Dealerships

253

247

331

331

284

281

Branded aftermarket

238

228

278

264

261

249

Quick lubes

168

257

203

211

187

236

Individual repair shops

245

232

263

269

256

254

Industry average

238

241

281

280

259

261

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

Most recent customer paid repair/service bill

50

100

150

200

250

300

Dealerships

2016: 284 2015: 281 Branded Aftermarket

2016: 261 2015: 249 Quick Lube

Repair bills are still on the increase for Dealers, the Branded Aftermarket, Quick Lubes, and Independent Repair Shops. Overall, for the most recent repair bill, consumers reported that they paid, on average, $2 less than in 2015.

Customers of Quick Lubes showed a decrease in repair bills, going from an average of $236 in 2015 to $187 in 2016. Independent Repair Shops increased $2, going from $254 in 2015, to $256 in 2016. The Branded Aftermarket saw a $12 increase in 2016.

2016: 187 2015: 236 Independent Repair Shops

2016: 256 2015: 254 INDUSTRY AVERAGE

2016: 259 2015: 261

Is your customer experience driving maximum performance and retention?

We can help.

Inquire now about a full-set of industry-wide scorecards by visiting: jdpower.com/JobberNews

To gain more detailed information about your brand’s speciďŹ c performance, please contact JD Ney directly at JD.Ney@jdpa.com.

JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

21

cover feature | market facts

lube, oil, & filter service Establishment used for LOF work by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

52

45

46

48

15

The Independent Repair Shop market share decreased four points, going from 28% in 2015 to 24% in 2016.

13

Branded Aftermarket outlets also decreased by one point in 2016, with 15% of customers visiting.

Branded Aftermarket

13

16

16

Quick Lube

21

13

4

Quick Lubes saw a two-point increase on average in both the four-to-seven-yearold vehicle category and the older vehicle category.

Independent Repair Shops

14

26

33

Dealers still come out with the largest market share of the LOF business. In fact, their market share increased from 45% in 2015 to 48% in 2016. Their share among four-to-seven-year-old vehicles also increased three points to 59% in 2016.

24

Establishment used for LOF work by vehicle age 2016

60 50 40 30 20 10 59

34

48

12

19

15

12

15

13

17

32

24

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for LOF work by vehicle age 2015

60 4 to 7 years

50 8 to 12 years

40 Canada

30 Data & Analysis supplied by:

20 10 56

32

45

13

19

16

10

13

11

21

36

28

0 Dealerships

22

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

Congratulations to Kevin Lacroix on his great 2016 season!

The Bumper to Bumper team

JUST LIKE KEVIN, WE ARE

FUELED BY PASSION DRIVEN

BY PARTS The right part makes all the difference. That’s why we’re proud to offer Canadians one of the best auto parts inventories in the country – and with close to 50 years of experience, we truly are Canada’s parts people.

BUMPERTOBUMPER.CA

cover feature | market facts

transmission service Dealerships maintained their already dominant position in the Transmission Service category, and increased their market share by three points, to 68% in 2016 from 65% in 2015.

Establishment used for transmission work by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

68

66

70

68

Branded Aftermarket

9

13

10

11

Among the non-Dealership outlets, though, Independent Repair Shops enjoyed the largest market share, although they saw their market decline three points to 16% overall for 2016.

Quick Lube

8

6

1

6

Independent Repair Shops

15

14

19

While published numbers from years prior to 2010 can’t be captured precisely, Dealerships have been growing their share in the category for at least the last six years.

16

Dealerships lost four points in the four-toseven-year-old vehicle category, going to 74% in 2016, and gained 10 points in the eight-to-12-year-old vehicle category, going to 63% in 2016 from 53% in 2015.

Establishment used for transmission work by vehicle age 2016

80

The Branded aftermarket category dropped one point in 2016, going to 7% in the fourto-seven-year-old vehicle category, and gained one point in the eight-to-12-year-old vehicle category, at 16% for 2016.

70 60 50

Quick Lubes gained three points, going to 7% in the four-to-seven-year-old vehicle category, and lost one point in the eight-to12-year-old vehicle category for 2016.

40 30 20 10

74

63

68

7

14

11

7

5

6

12

19

16

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for transmission work by vehicle age 2015

80 4 to 7 years

70 60

8 to 12 years

50

Canada

40 30

Data & Analysis supplied by:

20 10

78

53

65

8

13

10

4

6

5

10

27

19

0 Dealerships

24

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

Install confidence.

Give them peace of mind that lives up to the highest standards. Yours. Install the confidence of trusted performance with EliteÂŽ by Continental belts and hose, and recommend replacement before it becomes a repair. With a track record of proven results for more than a century, we make it our priority to keep your customers on the road. Just like you.

Learn how you can install confidence at continental-elite.com

The EliteÂŽ by Continental line offers a full range of premium belts, hose and accessories engineered for perfect OE form, fit and function on all makes and models.

cover feature | market facts

brake service Establishment used for brake work by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

59

53

45

52

Branded Aftermarket

15

17

15

16

1

1

Quick Lube

2

2

In the four-to-seven-year-old category, the Branded Aftermarket channel saw a onepoint increase to 13% in 2016 from 12% in 2015.

Independent Repair Shops

23

29

39

31

Dealerships saw a significant increase in the older vehicle category, going to 40% in 2016 from 35% in 2015.

Establishment used for brake work by vehicle age 2016

Dealerships increased another three points in the four-to-seven-year-old vehicle category, going to 63% in 2016 from 60% in 2015.

80 70

Independent Repair Shops experienced a steady decline, dropping three points in the newer vehicle category and five points in the older vehicle category. This significant market shift towards dealerships could be due to the growing complexity of brake service and the growing demand from customers for quality parts and service in this category.

60 50 40 30 20 10

Brake Service, one of the most important service categories for all players, continues to experience dramatic change across the board. Dealerships are winning the battle for customers in this category. Dealerships increased four points to 52% of market share in 2016, while the Branded Aftermarket category saw another three-point decrease to 16% in 2016, down from 19% in 2015. Quick Lubes remained at 1% market share, and Independent Repair Shops lost four points, dropping to 31% in 2016 from 35% in 2015.

63

40

52

13

19

16

1

1

1

23

39

31

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for brake work by vehicle age 2015

80

4 to 7 years

70 8 to 12 years

60 50

Canada

40 Data & Analysis supplied by:

30 20 10

60

35

48

12

19

16

1

1

1

26

44

35

0 Dealerships

26

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

B i i Bringing together t th iinnovation ti and d superior i engineering, i i Raybestos® R b t ® specifically ifi ll designed d i d these specialty disc pads with application specific formulas and full-line coverage for critical target categories.

Differentiate your business with the Raybestos® Specialty line.

School Bus

Truck, Medium Duty & Air Disc

• Engineered for optimum safety and performance • Dependable, quiet, fade resistant braking

• Coverage through Class 8 • Stable friction performance over wide temperature range

R90 European

Police

• Optimized for vehicle specific performance and stopping power • Most parts in the product line meet the Regulation 90 standard of braking requirements

• Quiet, vibration free performance • High temperature, fade resistant operation

©2016 Brake Parts Inc LLC. All rights reserved. RAYBESTOS and THE BEST IN BRAKES are among the registered trademarks of BPI Holdings International, Inc.

www.raybestos.com

cover feature | market facts

suspension alignment service Establishment used for alignment work by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

63

62

56

61

Dealerships saw a slight increase in their share, increasing three points to 61% in 2016.

Branded Aftermarket players increased to 17% market share. Independent Service Shops dropped four points to 20% in 2016, after experiencing a three-point increase in 2015.

Branded Aftermarket

22

15

17

17

Quick Lube

4

2

0

2

Among older vehicles eight to 12 years old, the picture is only slightly different.

Dealerships still have the number-one position and are up five points to 51%, with Branded channels also up two points to 21% market share.

Independent Repair Shops

11

21

26

20

Establishment used for alignment work by vehicle age 2016

Regionally, Dealerships have maintained a stable picture across the country, dropping one point, going to a 63% share in the West, increasing three points in the Central region, and four points in the East at 56% share of market in 2016.

80 70 60 50

In contrast, Independent Repair Shops saw a steady decline across the country, dropping three points in the West to 11%, three points in the Central region, and showing a whopping seven-point drop in the East.

40 30 20 10

Dealerships are the market-share leaders in this category of service, with more than twice the market share of the secondplace player, Branded Aftermarket outlets.

However Branded Aftermarket shops are gaining market share.

70

51

61

15

21

17

1

2

2

14

26

20

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

The Branded Aftermarket experienced an increase in market share of 3% in the West, a one-point drop in the Central region and a two-point increase in the East.

Establishment used for alignment work by vehicle age 2015

80

4 to 7 years

70 8 to 12 years

60 50

Canada

40 Data & Analysis supplied by:

30 20 10

69

46

58

14

19

16

1

2

2

16

33

24

0 Dealerships

28

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

Choose the right oil filter.

It’s not just another oil change, it’s a FRAM ® oil change.

Recommended for conventional oil changes & compatible with synthetic oil.

©2016 FRAM Group (Canada) Inc. Fram.com

Recommended for premium conventional oil changes & compatible with synthetic oil.

Recommended for synthetic oil changes & compatible with conventional oil.

cover feature | market facts

tire replacement Establishment used for tire replacement by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

43

45

41

43

As the second most frequently soughtafter service, this competitive market sees Dealerships leading with a 43% share, up five points from last year. Branded Aftermarket shops gained one point, climbing to 27% in 2016. Independent Repair Shops appeared to be closing in on the Dealerships last year with an increase of six points to 36%, but this dropped to 28% in 2016. While there is a lot of tough competition for market share in this category, the unusually mild winter experienced across the country last year likely played a role in these results.

Branded Aftermarket

41

27

22

27

Quick Lube

3

3

1

2

Independent Repair Shops

13

25

36

28

Establishment used for tire replacement by vehicle age 2016

80 70 60 50 40 30 20 10

50

34

43

25

30

27

2

3

2

23

33

28

0 Dealerships

Branded Aftermarket

Quick Lubes

Tire service is a category that has become increasingly complex, with the growing proportion of vehicles in operation being equipped with tire pressure monitoring systems (TPMS), larger wheel sizes, and the growing recognition in some regions of the need for winter tires.

Independent

With an overall share of 43% in 2016, Dealerships are down four points, from 47% in 2015. Their market share for tire replacement in the four-to-seven-year-old vehicle category increased three points, from 47% in 2015 to 50% in 2016. In the eightto-12-year-old vehicle category, dealerships increased six points, going from 28% in 2015 to 34% in 2016. Branded Aftermarket shops saw an increase in the eight-to-12-year-old vehicle category, going to 30% in 2016 from 26% in 2015, but remained unchanged in the four-to-seven-year-old vehicle category at 25%. Quick Lubes doubled their market share, going to 2% in the four-to-seven-yearold vehicle category and increasing to 3% in the eight-to-12-year-old vehicle category.

Establishment used for tire replacement by vehicle age 2015

80

4 to 7 years

70 8 to 12 years

60 50

Canada

40 Data & Analysis supplied by:

30 20 10

47

28

38

25

26

26

1

1

1

27

45

36

0 Dealerships

30

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

tire repair Dealerships have the lion’s share of this market and are up four points to 45% from last year’s 41% market share. (Last year was the first year we collected stats for this category). The Branded Aftermarket decreased three points, dropping to 26% in 2016. Independent Repair Shops dropped two points to 25% market share, and Quick Lubes have 2% market share.

In the four-to-seven-year-old vehicle category, Dealerships have increased four points to 51% in 2016 from 47% of the market in 2015, and the Branded Aftermarket dropped six points to 24% in 2016 from 30% of the market in 2015. Independent Repair Shops remain at 21% market share in this category. Quick Lubes hold 4% of this category. In the eight-to-12-year-old vehicle category, the gap is much smaller between Independent Repair Shops and Dealerships: Independent Shops hold 29% market share and Dealerships hold 39%.

Establishment used for tire repair by vehicle age 2016

80 70 60 50 40 30 20 10

51

39

45

24

28

26

4

4

4

21

29

25

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for tire repair by region 2016 Dealerships | West 44 | Central 45 | East 48 | Canada 45 Branded Aftermarket | West 31 | Central 23 | East 23 | Canada 26 Quick Lubes | West 6 | Central 5 | East 1 | Canada 4 Independent | West 19 | Central 27 | East 29 | Canada 25

tire maintenance This is the second year for this category, so we now have some historical data to compare to this year’s results. Dealerships come out on top in this category with 51% of the market in 2016, up two points from last year. Independent Repair Shops come in second with 25% in 2016, down four points from 29% in 2015. The Branded Aftermarket is up two points to 21% in 2016 from 19% market share in 2015, while Quick Lubes hold 2% of the market.

Establishment used for tire maintenance by vehicle age 2016

80 70 60 50 40 30 20 10

63

38

51

17

27

21

2

3

2

18

33

25

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for tire maintenance by region 2016 Dealerships | West 56 | Central 54 | East 43 | Canada 52 Branded Aftermarket | West 27 | Central 19 | East 19 | Canada 21 Quick Lubes | West 3 | Central 3 | East 1 | Canada 2 Independent | West 14 | Central 24 | East 37 | Canada 25 JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

31

cover feature | market facts

battery replacement Establishment used for battery replacement work by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

62

51

51

54

Branded Aftermarket

19

21

17

19

Quick Lube

4

4

0

3

Independent Repair Shops

15

25

31

24

Establishment used for battery replacement work by vehicle age 2016

80 70 60 50

Dealerships are still in the lead in the Battery Replacement category, increasing six points to 54% from 48% in 2015. Among newer vehicles, Dealerships increased four points to 65% share in 2016, compared to 61% in 2015. The Branded Aftermarket dipped two points to 16% in 2015.

In the older vehicle category, Dealerships increased eight points to 46% in 2016 from 38% in 2015 while the Branded Aftermarket channel dropped another four points to 21%. Regionally, the Independent Repair channel saw a decrease across the board, dropping to 15% in 2016 from 21% in the West, dropping one point in the Central region to 25%, and dropping five points to 31% in 2016 from 36% in 2015 in the East.

Dealerships saw an increase of seven points in the West, a two-point increase in central Canada, and a three-point increase in the East. The Branded Aftermarket channel remained unchanged in the West, but experienced a one-point decrease in the Central region and a five-point decrease in the East, going to 17% in 2016 compared to 22% in 2015.

40 30 20 10

65

46

54

16

21

19

2

3

3

17

30

24

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for battery replacement work by vehicle age 2015

80

4 to 7 years

70 8 to 12 years

60 50

Canada

40 Data & Analysis supplied by:

30 20 10

61

38

48

18

25

22

3

2

3

18

36

28

0 Dealerships

32

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

www.vdo.com/usa

They’re not just OEM quality... they’re the OEM parts!

VDO – A Trademark of the Continental Corporation

Our new VDO OEM Direct Parts Program lets you give your customers OEM parts direct from the manufacturer – that’s us!

Our line includes Air Control Valves, Electronic Throttle Valves, Flex Fuel Sensors, Fuel Modules, Fuel Injectors, MAF/MAP Sensors and Temperature Controlling Water Pumps. We offer exceptional coverage for European, domestic and Asian vehicles. You get the same high quality original equipment parts we supply to vehicle OEMs worldwide, but affordably priced to keep you and your customers competitive.

For more information, email: salessupport-us@vdo.com or call: 800-564-5066

cover feature | market facts

engine/fuel system service Establishment used for engine/fuel work by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

65

59

62

62

Service in this category continues to lean strongly towards Dealerships. While it is not surprising that Dealerships have the greatest market share among four-toseven-year-old vehicles, they have lost market share in the older model category to Independent Repair Shops and Branded Aftermarket Shops.

Branded Aftermarket

9

10

10

9

4

1

6

27

27

23

Overall, Dealerships have increased two points to 62% market share, while Branded Aftermarket shops have dropped one point to 9% and Independent Repair Shops have decreased two points to 23% for 2016. In the four-to-seven-year-old vehicle category, Dealerships have decreased one point to 75%, while the Branded Aftermarket channel dropped two points to 7% in 2016.

In the older eight-to-12-year-old vehicle category, Dealerships climbed three points, coming in at 50% in 2016 compared to 47% in 2015. Branded Aftermarket shops experienced a slight increase in this category, gaining two points, going to 12% in 2016 from 10% in 2015. Independent Repair Shops dropped six points, going to 33% in 2016 from 39% in 2015. Quick Lubes managed to jump one point, going to 6%.

Quick Lube

10 Independent Repair Shops

16

Establishment used for engine/fuel work by vehicle age 2016

80 70 60 50 40 30 20 10

75

50

62

7

12

9

5

6

6

13

33

23

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

The Engine/Fuel System Service category has been identified by industry as an area where technology in the vehicle is making it increasingly difficult for technicians to perform service if they do not receive regular training updates and have the diagnostic and programming tools at hand to perform repairs efficiently and effectively.

Clearly, Independent Shops, Branded Shops, and Quick Lubes need to recognize this trend and invest wisely.

Establishment used for engine/fuel work by vehicle age 2015

80

4 to 7 years

70 8 to 12 years

60 50

Canada

40 Data & Analysis supplied by:

30 20 10

76

47

60

9

10

10

5

5

5

10

39

25

0 Dealerships

34

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

WITH WAGNER, YOU’LL BE SEEN IN THE VERY BEST LIGHT. From headlights to taillights and every light in between, Wagner® lamps and bulbs deliver high quality, lasting performance and safety. For your customers and your business.

wagnerlighting.com #PartsMatter ©2016 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.

cover feature | market facts

electrical work Establishment used for electrical work by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

69

65

65

66

Branded Aftermarket

10

11

9

10

Quick Lube

3

2

0

2

This is another category where technology on the vehicle is making it increasingly difficult for technicians to perform service if they do not receive regular training updates and have the diagnostic and programming tools at hand to perform repairs effectively and efficiently. Clearly Independent Repair Shops, Branded Shops, and Quick Lubes need to recognize this trend and invest wisely.

Independent Repair Shops

18

23

26

This is the second year for this category.

Dealerships dominate this category with 66% market share, up two points from 2015. In the newer four-to-seven-year-old vehicle category, Dealerships have 75% of this market, down four points from 2015.

Independent Repair Shops have 15% of this market, up two points from 2015, but dropped to 28% market share for the older, eight-to-12-year-old vehicle category, from 38% in 2015. The Branded Aftermarket has 7% and 12% respectively. Quick Lubes hold 3% and 1% respectively.

22

Establishment used for electrical work by vehicle age 2016

80 70 60 50 40 30 20 10

75

59

66

7

12

10

3

1

2

15

28

22

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for electrical work by vehicle age 2015

80

4 to 7 years

70 8 to 12 years

60 50

Canada

40 Data & Analysis supplied by:

30 20 10

79

52

64

8

9

9

1

1

1

13

38

26

0 Dealerships

36

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

Print is Not Dead...

In Fact

BORN: Germany, 1439 DIED: Circa 2000 ... or Did It?

It’s Growing

Consider The Following...

• 2015 reversed a decade of decline, with a projected 0.2% YOY growth. (FIPP Trends Report)

‘‘

Print is not hanging on by its fingernails, IT’S GROWING. FIPP World Magazine Trends 2014-2015 Report

• Printed UK magazine advertising delivered the highest ROI of all media channels, 11% higher than TV and 22% higher than online. (PPA Magonomics)

• In the US alone, 234 new titles made their debut, up 21% from 2013. (Guide to New Magazines, USA) • FOLIO Magazine’s annual survey of US city and regional magazines said 2015 featured more new launches than any year since 2009.

Publications Serving Niche Markets (like B2B) Provide Unique Content Readers Cannot Get Anywhere Else.* * Skip Zimbalist, chairman and CEO of Active Interest Media (AIM), which publishes titles like Backpacker, Black Belt, Arts & Crafts Homes, Better Nutrition, Ski Magazine, Vegetarian Times, Power & Motor Yacht, and Yoga Journal, told FOLIO’s recent Growth Summit that AIM is investing in circulation marketing including direct mail.

“We have not found declining yields in mail over the last 10-15 years,” he said.

In Case You Weren’t Convinced Before, You Can Confidently Say:

is Far From Dead. It’s Alive!

cover feature | market facts

audio/entertainment system repair Establishment used for audio/entertainment work by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

81

77

93

82

Branded Aftermarket

8

8

7

8

1

2

Quick Lube

1

4

This is our second year collecting data for this category, so we have historical data to compare to this year’s results. Dealerships dominate the category with 88%, up from 71% in 2015. Regionally they have 81% in the West, 93% in the East, and 77% in central Canada. In the newer four-to-seven-yearold vehicle category, Dealerships hold 88% of the market in 2016. This is an increase of 20 points over 2015. In the older eight-to-12year-old vehicle category, Dealerships hold a 76% market share, up two points from 2015. Independent Repair shops hold 4% and 12% respectively.

Independent Repair Shops

10

11

0

8

Establishment used for audio/entertainment work by vehicle age 2016

90 80 70 60 50 40 30 20 10

88

76

82

6

10

7

2

3

2

4

12

8

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for audio/entertainment work by vehicle age 2015

80

4 to 7 years

70 8 to 12 years

60 50

Canada

40 Data & Analysis supplied by:

30 20 10

70

47

57

11

16

14

3

3

3

16

34

26

0 Dealerships

38

Branded Aftermarket

Quick Lubes

Independent

130 King Street West, Suite 1309, P.O. Box 486, Toronto, ON M5X 1E5 Canada Phone 416.507.3255 | Fax 416.507.3263

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

heating, ventilation, and a/c This is the second year of this category, so we now have historical data to compare to this year’s results. Dealerships have the lion’s share of the market with 66%, up nine points from 2015. Regionally they have 69% of the market in the West, 66% in the Central region and, and 62% in Eastern Canada. In the newer four-to-seven-year-old vehicle category, Dealerships have 77% of the market, up seven points from 2015. In the older eight-to-12-year-old vehicle category, Dealerships hold 53% of this market in 2016, up six points from 2015, and Independent Repair Shops have 28% of this category in 2016, down six points from 2015.

Establishment used for HVAC work by region 2016 WEST

CENTRAL

EAST

CANADA

Dealerships

69

66

62

66

Branded Aftermarket

12

11

9

11

3

1

3

Quick Lube

6 Independent Repair Shops

13

20

28

20

Establishment used for HVAC work by vehicle age 2016

80 70 60 50 40 30 20 10

77

53

66

8

15

11

3

5

3

13

28

20

0 Dealerships

Branded Aftermarket

Quick Lubes

Independent

Establishment used for HVAC work by vehicle age 2015 4 to 7 years

80 70

8 to 12 years Canada

60 50 40 30 20 10

70

47

57

11

16

14

3

3

3

16

34

26

0 Dealerships

JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

Branded Aftermarket

Quick Lubes

Independent

39

AIA Canada Night 2016 | photo gallery

AIA’s annual Canada night held on the second day of the AAPEX/SEMA show was well attended.

Each year the AIA provides a quality evening where attendees can relax over dinner and catch up with old friends and make new acquaintances.

40

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

social media 101 |

Launching A GREAT FACEBOOK PAGE ext to your website, your company’s Facebook page is one of your most important online marketing tools. Facebook pages are like personal profiles for your business. (In fact, Facebook treats personal profiles and business pages differently, and forbids business promotion through personal profiles.) A Facebook page works similarly to a profile as a way to present your company’s “personality,” build a community, and instantly connect and interact with clients and potential clients.

AIA Canada’s Facebook page (www.facebook.com/AIAof Canada/) is a great example of a Facebook page that works well for its audience. It’s attractive, simple, contains all the info that AIA members might be interested in, and is kept updated on a regular basis.

Creating a Facebook page is easy: open facebook.com, scroll down the menus on the left side to Pages, and click “Create A Page.” Then fill in the blanks. But developing a great Facebook page – a page that builds traffic and Likes, encourages followers to interact with and return to it regularly, and provides timely and useful information about your company – takes a little more effort. Here are some of the top secrets to success.

1

The cover picture The cover picture is the large, wide picture at the top; a great cover picture identifies you and sets the tone of your page. Many businesses simply post a Google Map or a picture of the outside of their business, and this is fine, but why not be a little more creative? A group shot of your staff, an eye-catching luxury automobile, or something associated with your business (say, a travel pic of the Rocky Mountains if your business is located there) are all good options. Keep text to a minimum; the text size is reduced according to the size of the computer screen it’s being read on, and practically indecipherable on cellphones and other compact mobile devices.

Cover pictures are always in landscape format (i.e., horizontal instead of square or vertical). Moreover, since Facebook pages have a slightly different format on mobile devices than on desktop computers, the cropping or framing may vary, although you can adjust the frame when you set up the picture. Also, be open to updating your cover picture from time to time; changing it with the seasons is one idea.

42

Facebook has a few rules about cover and profile pics: all cover images are public and visible to all who visit your page; they can’t be misleading, deceptive, or infringe on someone else’s copyright; and you cannot encourage visitors to upload your image to their personal timelines.

2

The profile picture This is the smaller square picture at the side above the links menu, and together with your user name, forms your “avatar” (the identifying info at the top of each post or comment). Your company logo, or if you like, a picture of the boss or whoever is the human face of your company, are both popular choices.

3

Links menu Below your profile picture is a list of links that visitors can click for more information. These sections are also visible as boxes on the right hand side of the page, with the most recent or important info at the top. They can be filled out when you create your page.

“About” provides the most important information about your company: phone and email address, website URL, Twitter handle, etc. A right arrow on the About box (or link) clicks you through to a longer About section, where you get to talk about your company in more detail. Tell your full story, what you carry, whom you serve, company history and mission statement, etc.

Update it as necessary.

Other links allow you to automatically upload Twitter, Instagram, and other social media to your page, along with Photos, Videos, Events, and other customizable links, such as Reviews.

“Likes” allows you (and others) to see how many people have visited and liked your page.

4

Now the hard part: content Just launching your Facebook page is only the beginning of your Facebook adventures. To make a truly successful page, you should post material that users will find compelling and useful, and post frequently: some experts advise posting every day, but a minimum of once or twice a week is recommended. There are a number of ways to keep your posts current: www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

Photo: Prykhodov – iStockphoto

N

BY LUCIANA NECHITA, AIA CANADA, AND MARTHA UNIACKE BREEN

advertiser index | ACI-Agri-Cover Inc ...................... 9 www.accesscover.com

if you can’t set aside a few minutes each day to post, assign someone in your company to keep on top of this and other social media tasks. Alternatively, tools such as Hootsuite or Facebook’s own “Schedule” button will allow you to upload a number of posts simultaneously, and set them up to post on a timed basis.

We will cover finding and generating great content in a later column, but here are a few tips. The secret of great content is to offer value. Your page is a great venue to offer updates on your business and products, but don’t get carried away. Combine a timely mix of promotions, sales events, behind the scenes at events, etc., with third-party content like links to important news that affect your community, your clients, or feel-good lifestyle messages. If possible, include a “special deal of the week” with your products or services. Let the fans know it’s weekly so they will come back again.

As a rule of thumb, aim for 60% direct sales info, 20% reposts of great material from other sites or pages, and 20% feel-good or lifestyle messages. This latter category may not seem important on a business-oriented page, but actually, it’s a great way to draw new people to your page and build traffic and interest, especially if it gets picked up and shared with other users.

Some examples of lifestyle content for your page might be “10 Ways to Get Your Car Ready For Winter,” “What To Do In An Accident” (which your visitors might choose to share with their own consumer customers), or even, depending on your audience, humorous or general-interest posts similar to what you’d post on your personal timeline. (Remember to always exercise good taste, however.)

Use Facebook milestones to add more promotional content, like when you hit 500 or 1000 fans. Use that as an opportunity for a draw on a product or service, or a discount that you offer.

Always link back to your website; this will help with search engine rankings and increase your online visibility with prospective clients.

Mix up the type of content you’re posting: switch between how-to videos, photos, contests, or polls, so fans will look forward to something unexpected. Using your own Facebook business page Insights section, check what content is more popular, and what days and times and audience demographics garner the best response. This will help guide you to what type of information you should post, when to post it, and who is going to read it.

AIA .......................................... 41 www.becarcareaware.ca

Aisin Group ................................ 7 www.aisin.com

Akebono .................................. 18 www.akebonobrakes.com

BPI/Raybestos ........................... 27 www.raybestos.com

Continental VDO ........................ 33 www.vdo.com

Contitech ..................................25 www.continental-elite.com

Federal Mogul (ANCO) .............. 2,8 www.ancowipers.com

Federal Mogul (Wagner Lights) 18,35 www.wagnerbrake.com

Federal Mogul (OEX) ..................45 www.wagnerbrake.com

FRAM Group.............................. 29 www.fram.com

JD Power................................... 21 www.jdpower.com/JobberNews

Mann+Hummel – WIX ................ 12 www.wixfilters.com

Mevotech ..................................46 www.partsonline.mevotech.com

5

Building likes and shares Include your Facebook address or a Facebook link on all your correspondence, including your ads (especially online), invoices, email, and of course, your website. Promote the page and ask colleagues and customers to Like it. You can even use the Invite button on the Home page to actively ask Friends (your entire Facebook list, or a group you specify) to visit and add their Likes. Before long, people will begin to discover your page and your Like numbers will grow on their own! JN Luciana Nechita is director of public affairs at AIA Canada; Martha Uniacke Breen is contributing editor of Jobber News JOBBER NEWS / DECEMBER 2016 |www.autoserviceworld.com

®

Promax Auto Parts ...................... 5 www.autopartsdepot.ca

Schaeffler Group USA Inc ............. 6 www.repxpert.ca

Uni-Select ...........................1,15,23 www.bumpertobumper.ca

43

money & management |

PREPARING FOR NEGATIVE INTEREST RATES

W

Prepare Now He says that the road to negative interest rates will begin as deflation takes hold around the world, and all countries try to devalue their currencies (in effect, a form of negative interest rates) in

BY MARK BORKOWSKI

44

“

The road to negative interest rates will begin as deflation takes hold around the world, and all countries try to devalue their currencies (in effect, a form of negative interest rates) in order to gain a global competitive advantage.

Countries with inherently strong currencies will be forced to go below zero.

Then all other countries will follow.

order to gain a global competitive advantage.

Countries with inherently strong currencies (e.g., Japan) will be forced to go below zero. Then all other countries will follow. These central banks will all try to explain that this is a temporary measure, but you will know, deep down, that this is not true. This will be a oneway ticket. This time it is serious. The United States will resist negative rates as long as possible, but will have no choice as their dollar rises, their exports suffer, and their stock market begins to tumble. From a currency standpoint, it will be a global race to the bottom.

Verge then goes on to describe a whole new counter-intuitive world of deflation, where oil prices drop, retailers are reduced to showrooms and phones, banks are formed where nobody pays, asset taxes replace income taxes, and negative interest rates are rampant. In his book, he develops scenarios and plans for immediate action. He shows us how to be prepared. When I look at the warning signs around the world, the inevitable conclusion is to begin preparing sooner rather than later. Like, now. JN

”

Mark Borkowski is president of Mercantile Mergers & Acquisitions Corp. Mercantile is a mid-market M&A firm focused on the automotive aftermarket.

www.autoserviceworld.com | JOBBER NEWS / DECEMBER 2016

Photo: cisale – iStockphoto

hat will you do on the day you go into the bank to make a deposit and they want to charge you a storage fee on your cash? They want to charge you negative interest rates! They say that because prices are falling globally, they can’t pay any interest. They say you are lucky to be able to store your money there and that the storage fee is so little!

I recently had a chance to interview Mike Verge, author of the newly published book, “Global Deflation, and the Next Great American Decade to Come” (now available on Amazon). He says that although central bankers of the world say that the global economy is healthy, he suggests we should all at least prepare for one scenario of global deflation where negative interest rates become rampant. After a lengthy discussion, he asked me if I was prepared for negative interest rates. He made me think…If it was me, what would I do?

Would I take my money out of the bank? Would I store all my cash at my house? Would it be safe there? Are the authorities prepared for a run on the banks? Would the government announce a “bank holiday,” and shut the banks? That’s when I realized that I have been watching this whole global economic debacle develop over the past few years as if in slow motion. But still I would have to say, I was not prepared for this.

In this stimulating conversation, Verge explained that since the time of the Romans, governments have borrowed dollars today, with the intent of paying it back later with cheaper future dollars, and they have created a whole “inflation industry” of politicians, economists, and eventually business schools to support them. But Verge suggests we should learn to think on our own. Verge showed he has a unique ability to craft new visual models to explain complex economic concepts. He likens these new models to “Deflation Sunglasses.”

He says that by using these new models, your economic future will become clear. What he sees in our future is negative interest rates.

Mike Rowe Huge Fan of Stopping Sooner

Jeff Buckley ASE-Certified Technician Midlothian, TX

WHICH BRAKE PAD STOPS YOU UP TO 50 FEET SOONER?

*

THE GUYS WHO KNOW, KNOW IT’S WAGNER® OEx

First, we put new Wagner OEx brake pads for Pickups, SUVs and CUVs through rigorous 3rd party validation. Then we got them into the hands (and vehicles) of top techs around the country. The verdict? Wagner OEx changes the game for braking performance.

• Stops up to 50 feet sooner than other leading pads* • Lasts up to 2x longer† • Custom-designed to your vehicle’s unique brake system

#partsmatter Explore the Science Behind the Stop at wagnerbrake.com

*

Results based on 60 mph post-fade performance testing, conducted by Link Engineering Company, comparing Wagner Brake pads to competitors’ brake pads on the 2014 Ford F-150, 2011 Toyota RAV4 and 2013 Chevrolet Tahoe. † Results based on internal testing comparing new Wagner OEx to other Wagner offerings. ©2016 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.