The automotive aftermarket’s service and repair industry experienced strong sales in 2021 even as supply constraints remain an issue, according to DesRosiers Automotive Consultants (DAC).
That should be of interest to any dealer keeping tabs on the ups and downs of the sector. With Canadians using their vehicles more often, DAC said maintenance and repair behaviour “remained resilient,” and the aftermarket continued with a relatively strong pulse. However, challenges with parts supply and pricing led to 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,” said 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 connected with its colleagues at the Automotive Aftermarket Retailers of Ontario (AARO) for input on sales performance, sales outlook, supply concerns, and more. The goal was to better understand the aftermarket’s performance in 2021 and their sentiments about the future.
On performance, 54% of aftermarket retailers experienced sales increases, while 33% said sales were down. Both of these extremes were well represented, as 20% of respondents noted sales increases of more than 10%, and 19% pointed to sales decreases of more than 10%.
As for their outlook this year, DAC said 58% of respondents expect sales increases of between 1-10%—with 21% of aftermarket retailers expecting no change.
Regarding specific jobs, DAC said a number of patterns were obvious: there was little change when it came to oil changes and regular maintenance, and the story was similar for tire change and diagnostic work. In these last two areas, most respondents noted broadly stable sales.
“For preventative maintenance, on the other hand, respondents saw a wide range of differing performance,” said DAC. “Supply concerns were an area where respondents found much more common ground.”
Asked about parts supply challenges stemming from jobbers, 77% of respondents experienced issues. In terms of prices, 47% pointed to parts prices from jobbers up 0-5% in 2021, with 49% citing increases of more than 6%.
“Moreover, 88% of respondents cited supply issues stemming from new vehicle dealers with just 12% disagreeing,” said DAC. “Price changes were similar with 47% citing increases between 0-5% and 45% citing increases in excess of 6%.”
Few respondents noted price decreases from either source, said DAC.
