New report examines mechanical repair landscape

Disruptive forces sit at the doorstep of the mechanical repair sector of the automotive aftermarket, but these bring both opportunities and challenges ahead, according to a new industry report.

The Automotive Industries Association of Canada released the Mechanical Repair Sector Landscape – 2022 report last week. It examines what impacts these forces will have on the mechanical repair sector.

It summarizes its findings by noting that the industry should return to pre-pandemic activity, barring something unforeseen, making it important for those in the sector to plan ahead. Major changes are on the way as internal combustion engines make way for battery-electric ones.

“And this planning imperative is not for some future point — it requires the urgent attention of all aftermarket mechanical providers now,” it emphasized.

Another challenge is around talent. Proactive investment and a look to attract internationally is noted as a strategy.

For those willing to adapt, the report highlights opportunities. One is the growth of regional and national banner programs. As consumers demand a level of expertise to service their vehicles, consolidation similar to that of the collision industry could take place.

Similarly, customer service — in which the aftermarket outranks dealers — will be key to shops.

It also noted positive signs such as a rebound in kilometres driven, more vehicles in operation and a higher average age of vehicles.

The report includes a deeper examination of the impact of disruptors, electric vehicles, vehicle quality and more.

It is free to AIA members and $249 for non-members.