CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

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CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

CANADA'S LEADING INFORMATION SOURCE FOR THE METALWORKING INDUSTRY

Aftermarket an oasis in turbulent automotive ecosystem

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The automotive aftermarket was a pillar of strength in 2021 providing stability in a turbulent automotive environment, according to Desrosiers Automotive Consultants (DAC).

With Canadians making extensive use of their vehicles, maintenance and repair behaviour continued to be resilient, and the aftermarket remained relatively strong, DAC said in its report on the aftermarket. The consultancy did note, however, that problems in parts supply presented some difficulties.

“While a majority of service and repair facilities noted sales at or above pre-pandemic levels in 2021, there were still some that faced difficulties” commented Andrew King, Managing Partner at DAC. “In addition, supply issues impacted the aftermarket in a meaningful way and may have hampered growth even though the larger picture remains positive.”

DAC reached out to at the Automotive Aftermarket Retailers of Ontario (AARO) to gather their input in putting together its report. Here are the highlights:

When asked about their performance for 2021 in more detail, 54% of aftermarket retailers noted sales increases. Inversely, 33% of respondents noted that sales were down. Interestingly, both extremes were well represented with 20% stating sales increases in excess of ten percent and 19% stating sales decreases in excess of ten percent. When considering their outlook for 2022, 58% of respondents cited expected sales increases between one and ten percent with 21% expecting no change.

Supply concerns were an area where respondents found much more common ground. When asked about parts supply challenges stemming from jobbers, 77% had experienced issues with 23% disagreeing. In terms of prices, 47% noted parts prices from jobbers to have been up 0-5% in 2021 with 49% citing increases in excess of six percent. Moreover, 88% of respondents cited supply issues stemming from new vehicle dealers with just 12% disagreeing. Price changes were similar with 47% citing increases between 0-5% and 45% citing increases in excess of six percent. Very few respondents noted price decreases from either source. 

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