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SHAD’S R&R GOLF TOURNAMENT RAISES $175,000 • UNI-SELECT EXPANDS ACROSS THE POND, AND AT HOME JULY/AUGUST 2017

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Jobber News

contents | july/august 2017 » vol. 85 no. 06

Serving the Automotive Aftermarket Since 1931

news OVER THE COUNTER

7 7

Shad’s R&R

The 44th annual Shad’s R&R for Muscular Dystrophy raised another $175,000, bringing its all-time total to more than $4.8 million.

Uni-Select grows

Uni-Select has entered the European market by acquiring the second-largest independent auto parts distributor in the United Kingdom.

COVER STORY

WESTERN BEARING AND AUTO PARTS 2017 JOBBER OF THE YEAR

It’s all about service Doug Borland ensures that his customers in Portage la Prairie, Man. are always receiving a ‘higher level of service.’ By building relationships with clients and delivering the products they need – even ones he doesn’t carry – Borland has made Western Bearing and Auto Parts a success.

in this issue

MARKET WATCH |

Minimum wage boosts coming Ontario and Alberta are spiking minimum wage to $15. Alberta will do so in October of 2018, while Ontario follows a few months later. Jobbers, many of whom pay more than minimum wage, might find themselves in a unique position.

From the ground up

Bumper to Bumper opened its flagship corporate store in London, Ont. At 26,000 square feet, it’s the largest corporate store in the chain.

AIA AGM

At the AIA’s recent AGM, John Maslack was given the Distinguished Service Award by the group, while Jason Best received the Young Leader Award. Dave Fifield assumed the role of chairman and board members were appointed.

columns 5 27

Leading off Celebrating the small wins

33 Social Media 101

MARKET TRACKER |

What Facebook Insights can tell you

Premium filters for aging cars The average age of vehicles in North America is almost 12 years. Do drivers really want premium filters on an older car? They should, because age and quality go hand in hand. Jobbers need to know the car and the customer to make the sale happen.

36 Money & Management Plan for gradual instead of quick exit

38 Business Management 33

What your shop customers really want from you

Cover image: Adam Malik

Twitter: @JobberNews |

JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

www.facebook.com/JobberNews

LONG-TERM PERFORMANCE FOR THEM. LONG-TERM CUSTOMERS FOR YOU. PARTS THAT WORK FOR YOU. Ford and Motorcraft® Parts will keep your customers coming back for more. They’re backed by our 2-year, unlimited distance warranty*, which includes covering labour reimbursement. Plus, our gas engines and transmissions are backed by an unlimited distance and labour warranty for up to 3 years^. Warranty-backed parts and long-term performance. That’s what we call a winning combination.

Learn more at ford.ca/wholesale.

FORD PARTS

WARRANTY^

DISTANCE INCLUDES LABOUR

*24-month/unlimited-km limited warranty applies to most car and light truck Genuine Ford/Motorcraft® Parts and Ford Genuine Accessories, purchased from Ford or Ford Lincoln dealers that are found to be defective in material or workmanship. Parts and labour (up to a maximum of $150) covered for wholesale parts/accessories. Part and/or accessory failure due to: abuse, misuse, neglect, alteration, accident, racing; improper lubrication, repair, or installation; use in applications for which they were either not designed, or functionally intended, or not approved by Ford Motor Company of Canada, Limited; cleaning, adjustment or replacement as a part of normal maintenance; or failures caused by non-Ford parts, are not covered under this warranty. See your local Ford Store for complete coverage details and limitations. ^36-month/unlimited-km limited warranty on New and Remanufactured Gas Engine Assemblies (6006, 6V012, SLGB, LGB) and Transmission Assemblies (7000, 7V000, 7002, 7003,TRM), purchased from Ford or Ford Lincoln dealers, that are found to be defective in material or workmanship. Parts and labour (up to a maximum of $150) covered for ‘over-the-counter’ parts/accessories; labour is covered for engines/transmission assemblies (max. of $150 does not apply). The warranty does not cover parts or accessories that fail due to abuse, misuse, neglect, alteration, accident or racing or which have been improperly lubricated or repaired, improperly installed, or used in applications for which they were either not designed, or functionally intended, or not approved by Ford Motor Company of Canada, Limited, or are cleaned, adjusted or replaced as a part of normal maintenance or failures caused by non-Ford parts. In the Province of Quebec, none of the following limitations and exclusions will exclude or restrict the warranty provided for in sections 37 and 38 of the Quebec Consumer Protection Act. To the extent allowed by law, loss of time, inconvenience, loss of use of the vehicle, commercial loss, or special or consequential damages are not covered. There is no other express warranty, agreement or representation on Ford supplied replacement parts and accessories. Any implied warranty or condition as to merchantability or ﬁtness is limited to the duration of the written warranty. See your local Ford Store for complete coverage details and limitations. Motorcraft® is a registered trademark of Ford Motor Company. ©2017 Ford Motor Company of Canada, Limited. All rights reserved.

Jobber News

leading off |

with adam malik, editor » adam@newcom.ca

FOUNDED 1931

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 | Adam Malik (416) 510-6763 E-Mail: adam@newcom.ca Contributing Editor | Martha Uniacke Breen E-Mail: mubreen@sympatico.ca Contributing Writers | Mark Borkowski, Bob Greenwood, Geoff Kirbyson, Donalee Moulton 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.

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JOBBER NEWS / JULY/AUGUST 2017 |

CELEBRATING THE SMALL WINS oug Borland had something of an epiphany after it sunk in that he had won the 2017 Jobber of the Year Award. The general manager of Western Bearing and Auto Parts leaned back in his chair and realized that, despite the success he and his business have had, he has never fully acknowledged it. Never taken the time – or enough time – to appreciate the hard work he and his team have put into making the business a winner. Is that you, too? Do you ever stop to understand just what you and your people have accomplished? The small wins, the But with big wins, the reasons why you head to the shop every morning? Borland has a good thing going there in Portage la Prairie, each hurdle Man., but he decided that a change in mindset was needed. you jump He simply hasn’t given himself the satisfaction of looking over, it’s around and understanding just what his family-run business important has accomplished. to take a you can probably relate, whether you’re a Jobber of moment and theAnd Year or not. Most business leaders get where they are reflect a little. because they put their head down and plow through the challenges, rarely coming up for air because once a roadblock is passed, another awaits. But with each hurdle you jump over, it’s important to take a moment and reflect a little. You’re facing a number of challenges, whether it’s staffing, finding enough space to keep parts in stock, or figuring how to survive all the changes sitting on the aftermarket’s doorstep. There’s plenty of reason to ignore the small wins. After all, how can you spare a moment with yourself when there’s another battle to fight, like, right now? Fair question. But we’re not talking about popping champagne or raining confetti down from your rooftop. The moment comes, you soak it in and acknowledge it, and then you join the next fight. It seems like such small potatoes in the grand scheme of things, but it’s really quite valuable. There’s something to be said about the power of positivity, and celebrating when you can – again, not extravagantly – is well worth it. However, don’t just look inwards. Concentrating on your own wins isn’t good enough. In fact, it’s probably a terrible strategy. It’s good for you personally but there’s no way the success of your business is yours alone. The celebrations need to be shared with the rest of your team. Take your frontline staff. They’re doing more than fulfilling orders. They’re developing those crucial relationships with your customers, they’re managing the customers’ needs, and they’re making sure customers are getting what they want. Did one counterperson go the extra mile? That means the customer is probably coming back to spend more money in your store. Is another making premium sales on a regular basis? They’re boosting profit. Those are small victories for your business that your counterperson created. Acknowledge them. Let them know that their hard work is being noticed. They will certainly appreciate it. And given the challenges that many of you face in attracting and retaining good employees, noticing their own little victories can go a long way. So, where else can you find those small wins? You know better than I, so take a moment to reflect on all corners of your business. What’s working well? Where does your shop get its boost? Shine a light on those areas. Take a moment to relish the positives and make sure you’re including all those who are contributing. There’s a lot happening in your business, inevitably, and much of it is well worth your undivided attention if only for a moment. Chances are, you’ll find more little gems of excellence than you thought there were. And that’s no small win at all. JN

www.autoserviceworld.com

over the counter | APPOINTMENT

SHAD’S R&R HITS $4.8 MILLION The 44th annual Shad’s R&R for Muscular Dys-

trophy raised $175,000 in its latest event, bringing the all-time total to more than $4.8 million. More than 200 members of the automotive aftermarket took part in a day of golf at Station Creek Golf Club north of Toronto on June 8, before heading inside for a dinner banquet where they could also bid in a silent and live auction, and win prizes via a draw. The crowd also heard from Christina Massad, who told her story of being diagnosed with muscular dystrophy at age 13, after noticing tasks like walking up a set of stairs because too much C of a challenge. hr ist She thanked everyone in ina M sad as attendance for their support, even though the disease may not be one of the most common or well-known causes, such as cancer.

“People just have amazing hearts, and you see that in this room,” Massad said, recognizing that so many people took time out of their day to help raise money for the cause. “We have no words. People like me, families like mine that have been touched by Muscular Dystrophy Canada, there simply are not enough words in the English dictionary to say thank you for your continued generosity and your support.” Shad’s chairman, Brad Shaddick, noted that the everyone in the aftermarket comes together for the day, even if they are competitors. “I think that you will agree that Shad’s is a very unique event,” he told the crowd. “it’s a fun day when we set all business issues aside, and competitive issues aside, in order to join forces and focus on the bigger cause of finding a cure for muscular dystrophy.” It’s the largest single day fundraiser in the automotive aftermarket. JN

IDEAL SUPPLY HOSTS PAIR OF SHOWS Ideal Supply showcased products and services at two separate trade shows in late April in Barrie, Ont. and in mid-May in Stratford, Ont. In all, more than 2,900 people passed through the doors of the Barrie Molson Centre and the Stratford Rotary Complex to see more than 250 booths over 60,000 square feet of floor space. “We are very proud to have the opportunity to showcase our many products and services in the electrical, industrial and automotive markets under one roof,” said John MacDonald, vice president of sales and marketing. “It is amazing to see the pride that Ideal Supply associates have in these shows. They truly understand the value of these trade shows and how they can use them to help customers grow and be more successful; while having some fun at the same time,” said marketing coordinator Peter Mackie. Ideal Supply used the theme of Canada’s 150th birthday and proceeds from the food courts when to the Smart and Caring Community Funds. JN JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

Brent Windom has been appointed as president and chief operating officer, Canadian automotive group at Uni-Select. Former president at COO Gary O’Connor will retire at the end of the year, serving as strategic advisor to Windom during this time. “Brent has a solid track record of driving business growth through innovation, successful strategic initiatives and developing people,” said Henry Buckley, president and chief executive officer of Uni-Select. “We are extremely proud to welcome Brent back as a member of our executive team and are confident that, with his extensive leadership and his strong knowledge of the Canadian automotive aftermarket, he will be a key contributor in the pursuit of Uni-Select’s growth ambitions.” Windom has 30 years of experience in the aftermarket, most recently serving as president and CEO of U.S. parts distributor Auto Plus, Pep Boys. He has also previously served as president and COO of UniSelect USA, Inc. Buckley also paid tribute to O’Conner, thanking him for his “dedication” to the company. “The success of Uni-Select is, in large part, due to his extraordinary talent, his professional expertise and his leadership. Gary has earned the trust and respect of our team members, partners and industry leaders and he will be missed by all who had the privilege of working with him.”

over the counter | HONDA EYES 2025 FOR AUTOMATED VEHICLES on the road. That means their vehicles will be fully self-driving with no human operator required, except for inclement weather conditions. The only step higher would be no geo-fenced area and the vehicle can travel anywhere on its own. Honda Motor Co., Ltd. president and chief executive officer Takahiro Hachigo made the announcement at a media briefing in Japan, which build on their previous announcement of achieving Level 3 autonomous vehicles by 2020, in which drivers can cede full control to the vehicle, but must be available. “We are striving to provide our customers with a sense of confidence and trust by offering automated driving that will keep vehicles away from any dangerous situation and that will not make people around the vehicle feel unsafe,” Hachigo said. JN

MORE LEARNING OPPORTUNITIES AT AAPEX New partners and industry experts have signed up for AAPEXedu, giving attendees of the fall event have more options for training. Northwood University will offer sessions, while the Auto Care Association and the Automotive Aftermarket Suppliers Association also will provide sessions geared to various industries within the aftermarket. Attendees can choose from a number of topics, such as telematics, connected vehicles, advanced driver assistance programs, vehicle data access, alternate fuel and drive train options, and vehicle-to-vehicle (V2V) communication and new mobility models.

The Aftermarket Outlook session will feature NPD’s Consumer Outlook Survey and IHS Markit will reveal the newest and hottest trends shaping the global automotive aftermarket industry during its “Five Trends in Five Minutes” session. AAPEX will run from Oct. 31-Nov. 2 at the Sands Expo in Las Vegas. JN

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www.autoserviceworld.com | JOBBER NEWS / JULY/AUGUST 2017

Photo: the-lightwriter, iStock.com

By 2025, Honda expects to have Level 4 autonomous cars

UNI-SELECT EXPANDS INTO UK Uni-Select has acquired the second-largest independent automotive parts distributor in the United Kingdom. The US$250 million debt-funded deal is expected to close in in the third quarter of this year, and gives Uni-Select its first presence in the UK market. The Parts Alliance has 7 per cent of the market, according to Uni-Select, and services more than 23,000 customers through 161 corporate stores, plus 38 affiliated locations. It has almost 3,000 employees. “We are excited to establish a third growth pillar in the large UK parts aftermarket that is expected to be immediately accretive in a market with great upside potential from future consolidation opportunities,” said Henry Buckley, president and chief executive officer of Uni-Select, in a statement announcing the news. He also praised Parts Alliance as an organization and recognized its position as a market leader with a growth platform that is proven. He also noted its management team “that has demonstrated its ability to drive profitable growth both organically and through acquisitions.” Buckley added that he both companies “are a perfect fit in terms of business profile, customer focus, entrepreneurial culture and commitment to people development.” Peter Sephton, Parts Alliance’s president and CEO stated his confidence in Uni-Select’s ability to lead future growth of the company. He will join Uni-Select’s executive team while also serving his current role in leading the European segment for the company. According to Uni-Select’s announcement, the U.K.’s automotive aftermarket is estimated to be US$5.28 billion, making it the fourth largest in Europe. An aging vehicle population and mandatory government regulations requiring vehicle inspection on cars reaching three years old is expected to boost market growth. JN

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TPMS FAQswith W! What is the diﬀerence between direct and indirect TPMS?

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• Direct TPMS has a sensor installed in the wheel and tire assembly. This sensor detects what the actual tire pressure is in each of the tires. • Indirect TPMS does not have a sensor installed in the wheel and tire assembly. This system detects the low tire by comparing relative wheel speeds via the Anti-lock Brake System (ABS). When a tire loses air, its diameter decreases slightly. One drawback is the inability to read the tire pressure when the vehicle is sitting still.

What is the difference between programming and relearning? EZ-sensor® comes BLANK and must be programmed to the specific MMY of the vehicle being serviced using a compatible TPMS programming tool. The tool programs the sensor with the vehicle specific protocol so that the sensor can communicate with the vehicle’s receiver.

WAKEFIELD REVAMPS WAREHOUSE Wakefield, the Canadian manufacturer,

marketer and distributor of Castrol products has completed a revamp of its Laval, Que. warehouse and distribution facility. “Quebec is a key strategic market in Canada,” said Mike Cowley, vice president, supply chain at Wakefield Canada. He added that Castrol holds the highest market share in Quebec, compared to other provinces, citing a Ipsos Reid aftermarket study from 2016. “So Wakefield has committed to maintain a significant Quebec-based presence with a cutting-edge, industry-leading facility.” The facility has acted as a blending plant as well as a warehouse, but the company decided in May to improve the 15,000 square-foot building in order to prepare for future growth, Cowley said. Upgrades to the space included an ergonomic redesign, installation of energy-saving lighting and heating and oil delivery mechanisms redesigned for to efficiently move bulk and packaged goods. “This focus has resulted in a clearer focus on product stewardship, quality while at the same time creating a more welcoming and comfortable work environment for its employees,” Cowley said. JN JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

After the EZ-sensor® is programmed, it functions the same way as the OE sensor for that speciﬁc vehicle. A relearn is required any time a NEW sensor ID is introduced to the vehicle or when the tires are rotated. The vehicle’s ECU records the 4 (or 5) sensor IDs so that: • The unique IDs installed on the vehicle are correctly recognized by the vehicle’s ECU. • On vehicles with pressure by location, the ECU can display the correct wheel location of each tire’s pressure. FOR MORE TPMS TIPS, FOLLOW SCHRADER:

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| business expansion

BY ADAM MALIK

BUMPER TO BUMPER OPENS NEW FLAGSHIP STORE

umper to Bumper, the corporate stores of Uni-Select, saw a problem. A member had left their buying group and there was now a void in the London, Ont. market. How were they going to serve a metropolitan area of almost a half-million people? Rather than look to sign up a new member or acquire a new store, the group had a better idea. In early June, the first ‘greenfield’ Bumper to Bumper store opened its doors – it’s the first corporate store designed specifically for the Bumper to Bumper brand. After 26 weeks of planning, designing, gutting and constructing, the 26,000-square-foot space is the biggest Bumper to Bumper store in Canada. It has more than 26,000 SKUs, four drivers and 14 employees, a number that is expected to grow, said Sandro Verrelli, vice president and general manager of Bumper to Bumper Corporate Stores Canada at Uni-Select. And the location is much more than just a way to serve customers in the region, Verrelli said, adding that it has a “dual purpose” by also being a research and development centre for all of Uni-Select’s Bumper to Bumper stores. Whatever practises that may be implemented here – technology, business development, customer relationships and so on – can be an example to corporate and independent members throughout the chain. “The London location represents the best of Uni-Select,” Verrelli said at a special event prior to the store’s official opening. “It’s an example for us to demonstrate to our members – this is how we go out and support business development opportunities; this how we help you work safely and productively in your stores, your branches and DCs; this how we think about nurturing and developing the talent on our team in ways that will inspire you to nurture and develop the talent on your team.” The end-goal being a stronger group of stores, he added. “Our intention here

is to continue to build strength within our corporate store network, but to also build strength through our independent network.” Focusing on the London market was obvious, Verrelli said, considering UniSelect no longer had a member in the area. Rather than go into a city where members already exist and potentially hurt them, “London was the perfect opportunity to build some muscle around greenfield development. And I can tell you right now, it’s been a wonderful experience.” There’s 110 years of experience among the 14 staff at the London store, which, Verrelli said, will come through when dealing with customers. “This is a showcase in how we make a difference for our customers. Availability is key in this industry – can we say ‘yes’ more often? Can we help navigate our customers to the right products and solutions they need? We got to have great expertise and we got to do it locally.”

JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

And Bumper to Bumper plans to be an integral citizen in London. “You got to be part of the community,” Verrelli added. “You make the commitment to be local, that’s part of our game plan.” Looking ahead, Verrelli expects future greenfield development paired with acquisition. “Those markets where there aren’t great acquisition opportunities for us to pursue, (greenfield opportunities) make sense.” Bumper to Bumper held its invite-only event in early June at the store located off Highway 401 on Exeter Road. An official grand opening celebration is planned for September. Acquisition of KC Distributors Bumper to Bumper has acquired KC Distributing in Owen Sound, Ont. A family-owned business, KC Distributing employs 30 people. “With this transaction, we add a solid team and a stable business organization carrying diverse product categories including automotive parts, paint and body supplies as well as industrial products to the Uni-Select family,” said Gary O’Connor, president and chief operating officer of the Canadian Automotive Group at Uni-Select, in a statement. JN 11

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| AIA annual general meeting

JOHN MASLACK WINS DISTINGUISHED SERVICE AWARD

or almost 60 years, Maslack Supply has served northern Ontario. And for that and more, John Maslack was recognized with the Distinguished Service Award by the Automotive Industries Association of Canada at its 75th Annual General Meeting in May in Toronto. Maslack, 91, is the founder and president of Maslack Supply, headquartered in Sudbury, Ont, with a dozen stores are more than 200 staff. Curtis Roy, Maslack’s grandson, accepted the award on his behalf at the meeting. “The award means a lot to us,” Roy said in

an interview following the event. “It’s nice that his peers and colleagues have recognized his contributions to the industry.” Since 1959, Maslack Supply has served the automotive, body shop, heavy duty and industrial sectors in northern Ontario. “It’s nice to see that even someone from humble beginnings in northern Ontario can be recognized with such an award,” said Roy, who is a purchasing manager at the company. The AIA highlighted Maslack’s support of his community, such as pioneering the Sudbury Memorial Hospital Foundation. He has also received the Rotary distinction of the Paul Harris Fellow Recognition, and the Jobber of the Year Award in 1994-95. The award is the AIA’s highest honour to recognize service and leadership for the growth and development of Canada’s automotive aftermarket industry. Recipients must have outstanding leadership, community service and personal contributions to the growth and progress of the aftermarket industry.

Curtis Roy, centre, received the Distinguished Service Award on behalf of his grandfather, John Maslack, with Dave Fiﬁeld, left, and Tony Canade.

NEW CHAIRMAN, BOARD ELECTED FOR AIA

ave Fifield is the new chairman of the Automotive Industries Association of Canada. Elected at the association’s annual general meeting in mid-May, the president of Wakefield Canada said he is honored to assume the role of chairman as the AIA’s celebrates its 75th anniversary and continues to evolve in the face of a changing industry. “The automotive industry has changed significantly (since AIA was founded in 1942),” he said. “The last few years for AIA have been nothing short of transformational.” He pointed out that the association’s membership is more diverse and inclusive than ever, having expanded its

scope to represent the collision industry and major retailers in addition to its original constituency of warehouse-distributors, jobbers, and aftermarket parts manufacturers. “The future is bright for the automotive aftermarket,” he said. “The fundamentals of our business are solid.” Nevertheless, there are significant disruptors on the horizon which require our attention – developments such as ride sharing, autonomous vehicles, electric vehicles, telematics, and 3D printing.

JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

“These all have an impact on the future of the market,” he said. He will be joined on the AIA’s executive committee for 2017-2018 by Brent Hesje of Fountain Tire (first vice-chairman), Jason Best of Spectra Premium (second vice-chairman), and Doug Reevey of Autotec Inc. (immediate past chairman). New AIA directors, elected to a three-year term, are Steve Leal of Fix Auto, Rick Orser of 3M Automotive, and Tony Del Vasto of Vast Auto.

YOUNG LEADER AWARD GOES TO JASON BEST

ason Best was named the 2017 Young Leader of the Year Award winner by the Automotive Industries Association of Canada’s Young Executive Society committee. He was given the recognition at the AIA’s 75th Annual General Meeting. Best is the executive vice president, aftermarket at Spectra Premium Industries. In an announcement from the AIA, it said that Best was born into the industry and is well known throughout for his approach to leadership, and his ability to share his vision with his team and customers. For example, the AIA highlighted Spectra’s move from being a single product line company to one with multiple lines in its portfolio under his leadership. He has an enthusiastic approach that is visible from the boardroom to the plant floor and everywhere in between, the AIA said, noting how Best mentors employees and other industry personnel alike. Best was also noted as community supporter, coaching both t-ball and children’s soccer. Within the industry, Best has served on the AIA’s board of directors since 2014 became an AIA board executive following the AGM. JN 13

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market watch | minimum wage

BY ADAM MALIK

Wage

boosts TO CREATE CHAOS

Jobbers in unique position as Ontario, Alberta spike base pay

Photo: Yestock, weerapatkiatdumrong, iStockphoto.com

inimum wage is set to rise drastically within the next 18 months in a pair of provinces, and many jobbers could be in a tough spot. Currently, Ontario’s minimum wage is $11.40 an hour. The government recently announced it will jump to $14 an hour on January 1, 2018. And one year later, it will spike another dollar to $15 an hour. That represents a jump of almost one-third in a year-and-a-half. Ontario is the second province to set sights on the $15 an hour mark. Alberta announced its intention a year ago. Workers there currently earn a minimum of $12.20 an hour, with a jump to $13.60 an hour coming this October, before reaching its high point one year after that, a few months ahead of Ontario. The issue for jobbers is a bit more complicated, however, than, say, your local coffee shop where minimum wage salaries are typically the norm. Many jobbers already pay above the minimum require-

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What people don’t seem to understand is the fact that it’s going to affect everybody’s wages. It’s going to affect the bottom line for everybody.

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– BRAD ANDERSON, CHECKER AUTO PARTS

ment, but, as Jacob Yako, president of Paste Auto Parts in Toronto, pointed out, the problem will be that the gap between

JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

the minimum and what jobbers currently pay employees will shrink. “It’s a big jump for us,” he said. “The guys are going to be saying, ‘You know what, our wage is this much and this is very close to minimum wage.’ The guys who are making $15, $16 (an hour), all of a sudden, they have to jump up. They’re going to say, ‘Well, Jacob, you know, we’ve been working with you for five years and I’m making $16 or whatever an hour, and I deserve a raise.’” Ryan Mallough is a policy advisor for the Canadian Federation of Independent Businesses. To say the group is not on board with the increases – be it in Alberta or Ontario – would be an understatement. “It was a total blindside (in Ontario), and furthermore, they’re not planning to do any consultation on it (and) there’s no economic impact analysis,” he said. That, coupled with the size of the increase and speed at which it will be continues on page 16

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market watch | minimum wage

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Some guys might say they will wait until their employees complain about their rate, but I can’t wait to do that because if I do that, I’m going to lose my really good employees at the end of the day.

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– JACOB YAKO, PASTE AUTO PARTS

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day,” he said, adding that he met with his accountant shortly after the Ontario announcement. He plans to go over each employee’s rate and adjust as necessary based on what they do and how long they’ve been with Paste. Doing so is important to Yako to maintain his relationships and trust with his employees. He understands the lifestyle and pressures facing his employees, from housing to affording daily purchases. “They’re going to respect that, and be treated very well.” Suleman, on the other hand, will take it all in stride. “We will deal with it when Photo: StockFinland, iStockphoto.com

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implemented, is a significant concern in both provinces, Mallough added. The CFIB preferred the old method of minimum wage increasing by the rate of inflation, giving everyone a long enough period to prepare. In Alberta, jobbers have been given a bit more time to get ready, but they know challenges are coming down the pipe for them. Brad Anderson, an owner at Checker Auto Parts in Didsbury, Alta., said part of his test is getting people to understand what increased minimum wage really means. He’s thinking about the suppliers who will have to pay more for their workers, in turn raising the price of parts he has to buy. “What people don’t seem to understand is the fact that it’s going to affect everybody’s wages. It’s going to affect the bottom line for everybody,” he said. Anderson said he may consider cutting staff as a result. That’s a concern the CFIB shares in both provinces, Mallough noted. He isn’t any less concerned about Alberta, he added, just because they have more lead time, either. However, Ameen Suleman, owner of Ameen’s Auto Parts in Calgary, has fewer worries about the upcoming spikes. He lived through similar issues before when Alberta was going through its oil boom a decade ago and wages were pushed up in order to attract and retain talent. “It’s happened before and it was fine,” he said. Yako and Suleman have differing strategies when it comes to the increase. To get ahead of the changes, Yako plans to take a pro-active approach and will increase wages when the time comes, rather than wait for his employees to knock on his door to ask for an increase. “Some guys might say they will wait until their employees complain about their rate, but I can’t wait to do that because if I do that, I’m going to lose my really good employees at the end of the

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Unlike a McDonald’s or Burger King, they’re going to have big jumps. For me, it’s a bit different.

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– AMEEN SULEMAN, AMEEN’S AUTO PARTS

the times comes. I don’t see a need to plan ahead,” he said, but added that he is not discarding the issue from his mind with just over a year until the change takes place. “Unlike a McDonald’s or Burger King, they’re going to have big jumps. For me, it’s a bit different.” While he’s not against a wage increase, Yako agrees with the CFIB that the jumps are happening too fast. If it had been spaced it out better, Yako said he and many other businesses would be in a better position to cope. “(The increase) is a lot. That’s really huge, not just for my

www.autoserviceworld.com | JOBBER NEWS / JULY/AUGUST 2017

industry, for everything else out there.” Yako and Suleman both noted that prices will naturally need to go up as a result. No matter what a company is currently paying in salaries, boosting wages will affect its bottom line and recouping those costs will have to come from somewhere. “It will start affecting our business because now we have to do a price increase automatically on everything,” Yako said. While the increase has already started in Alberta, Anderson said he hasn’t felt the push yet to bump up the price of auto parts. Not yet, anyway. But he’s expecting to really feel the ripples next October. And it will mean a jobber’s customers will need to understand why parts will be more costly, a message that will be important to get out. “We’re going to be hated in the market for the next six months,” Yako predicted. “When we do price changes and adjustments and stuff like that, the shops are going to look at us

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It’s an extreme amount of cost pressure in a very little amount of time that we’re concerned is going to force small business owners to make some difficult decisions.

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– RYAN MALLOUGH, CANADIAN FEDERATION OF INDEPENDENT BUSINESSES

and go, ‘What the hell? We’re still paying the same rate for our employees.’” So repair shops will have to follow suit and raise their prices. “Everything is going to change. It’s not going to be the same way (as before),” Yako said. And Anderson doesn’t think there will be a level of understanding, at least, initially from anyone. “I don’t think a lot of people understand it at all. I think a lot of people don’t see what the big deal is but they don’t understand that it’s going to affect everybody.” But if it’s going to affect all businesses – from Wal-Mart to Tim Hortons to repair

shops – Anderson doesn’t see a long-term backlash in the market, he added. Suleman agrees and will work to slowly implement price changes, rather do it overnight. “It has to be done tactfully,” he said. The CFIB’s Mallough also noted that employment insurance rates are going up, as are Canada Pension Plan rates. Throw in wage increases and it will be a tryingo time for small businesses, another reason his group is against these plans. “It’s an extreme amount of cost pressure in a very little amount of time that we’re concerned is going to force small business owners to make some difficult decisions.” JN

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cover feature | jobber of the year

BY ADAM MALIK

DELIVERING

‘A HIGHER LEVEL OF SERVICE’ WESTERN BEARING & AUTO PARTS:

2017 JOBBER OF THE YEAR

PORTAGE LA PRAIRIE IS LIKE MANY RURAL COMMUNITIES ACROSS THE COUNTRY. LOCATED AN HOUR WEST OF WINNIPEG, IT’S QUIET AND HAS THAT SMALL-TOWN CHARM. AND THE LOCAL BUSINESSES ARE THE LIFEBLOOD OF ITS COMMUNITY. And one of those is Western Bearing and Auto Parts, the 2017 Jobber of the Year.

family-run business that opened in 1966, Western Bearing services a 75-km radius, focusing on agriculture, automotive, heavy duty and industrial customers — and they value their relationships with the business. “It’s easy to pick up the phone or go online and order my parts. They pretty well carry everything that I need,” said Miles Graff, parts manager at Portage Transport. “The demands that we make are always met.” “It’s the knowledge of their products and the availability of their products,” continued on page 20

JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

cover feature | jobber of the year said Rick Hebert, stores manager at Moon Construction in Portage la Prairie. “The relationship is very good, they’re easy to talk to, they’re easy to get a hold of and get problems resolved right away.” And it’s all thanks to ensuring their customers are getting “a higher level of service,” said Doug Borland, Western Bearing’s general manager for the past eight years after taking over from his brother, who took over from their father, who started the business. “Service is a huge part of what we do,” he added, comparing the experience a customer would receive in his shop versus a big box store. “Anybody can walk into a Canadian Tire and buy a can of chemicals, go pay and leave. That’s not what Western Bearing is about. The majority of people that are walking in here are looking for what I would say is a higher level of service. They want somebody to talk to, they want someone that they can ask questions to and get their questions answered.” The 23-staff business has always put a focus on the customer. We’re all customers, he said. “I know how I like to be treated.” For instance, both Graff and Hebert highlighted the fact that Western Bearing has gone out of its way to order products for them that it doesn’t normally have on its shelf. “Some stuff they haven’t carried, I’ve asked them if they wouldn’t mind starting to stock them and keeping an inventory, and it’s no problem,” Graff said. Trust is essential in building relationships “because it’s not easily won,” Borland said. The aftermarket isn’t the type of industry where a business makes a transaction and the customer is never seen or heard from again. “Selling is fun, but most of all, I enjoy the relationship building,” Borland said. “If we really want to continue to be profitable and successful and grow as we have for the last 51 years, we need to have relationships and quality relationships, not only with our customer base, but also with our vendors.” Borland pushes a combination of products, price and service at Western Bearing to cement those relationships. “When you can deliver reasonable value, I think that’s where the relationship really starts to get built. 20

Service is a huge part of what we do. You know, anybody can walk into a Canadian Tire and buy a can of chemicals, go pay and leave. That’s not what the Western Bearing is about. – DOUG BORLAND, WESTERN BEARING AND AUTO PARTS

“When a customer trusts you, and they call and say ‘I need this, this and this,’ they know that they’re getting a fair price, they’re getting a quality product and service both at the point of sale and after sales day in and day out. It’s really what we strive to do.” And to keep customers coming back, you need to have the right products, Borland said. “We cater to our clients by having the products they need, and that we have the stock, and a diversification of products here that virtually no one else has. They come here so they can have an awful lot of their needs met under one roof.” Building trust and developing relationships is a team effort, from the sales team out on the road to the staff working the counter in the store. “New customers come in, they see the showroom, they see the mix of products that we have. And then after that, they’re assessing us on a service level,” Borland said. While staffing is a challenge for just

about every jobber, Borland credits his team for the success of Western bearing, many of whom have developed deep relationships with customers. And some of his employees have been there for decades. “We’ve had people who have finished out their work careers here,” he added as something in which he takes a great deal of pride. Online ordering has also played a vital role in Western Bearing’s success. Borland says his bigger accounts have commented on how much they value the service because it simplifies the process for them to buy products. “Anytime we can make stuff easier and more efficient for them, it’s a definite win for us.” The business is diversified across agriculture, automotive, heavy duty and industrial supply in is 17,000 square-foot building. What helps with Western Bearing’s success in all those areas, Borland said, is that many of his competitors are not local. “We definitely play on the fact continued on page 22 that we are here.”

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Western Bearing & Auto 2017 Jobber News Jobber of the Year

cover feature | jobber of the year That’s something Moon Construction’s Hebert appreciates. “They’re a good company all around. They’re local,” he said. “It’s good to have him in town, so we use him as much as possible.” But just being there isn’t enough – it’s about understanding the market, Borland said. That means knowing what trends are coming and going, and taking advantage of growth opportunities instead of watching them pass by. “I’ve adjusted with the changing market conditions and how the automotive industry has changed over the years with the advent of part proliferation and all that kind of stuff,” Borland said. “The fact that we’re rural, we’re very domestic-focused – there’s not a ton of imports out here. I just started focusing on that market and it has paid dividends. We decided who we really wanted to cater to and did our best to try to figure out what their needs are.” To figure out those needs, Borland asked what they were to his customers through a survey, and about their perceptions of the business and what Western Bearing should be offering. “That information is incredibly valuable. Some of it was affirmation to me that, yeah, we had picked the right path and that we were doing a lot of the right things,” he said. “And then there were some other things there that shed some light on some stuff that I wouldn’t have guessed. It was well worth doing and helped us grow.”

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Some stuff they haven’t carried, I’ve asked them if they wouldn’t mind starting to stock them and keeping an inventory, and it’s no problem.

And grow they have. Borland said Western Bearing has grown in each of the last seven years and has posted double-digit growth in each of the last three, forcing the business to expand its physical footprint. The business will be adding another 6,000 square feet to its current building to accommodate. But that doesn’t mean Western Bearing will carry products for the sake of doing so. Borland spends time looking at what’s actually making money and what isn’t. He doesn’t keep much on the shelf ‘just in case’ someone wants to order it. – MILES GRAFF, For example, it would only sell eight PORTAGE TRANSPORT to 10 clutches a year, but had 50 on the shelf at one time. “When you look at your turn ratio and you’re at a fraction instead of whole numbers, I think your decision is fairly easy,” Borland said. It’s all about keeping an ear open and knowing which way the industry is trending, and, again, catering to the market. And thinking about the future. “I tend to think fairly long term on most things, so this addition that we’re doing is one way of me sitting back and addressing Western Bearing today and looking at our challenges today and how those are going to keep magnifying for tomorrow,” Borland said. “This addition is going to address many of the things that I found frustrating, where I can’t quite get to where I really want to be.” Part of growth is going through growing pains. And even though Borland has created a plan and is prepared to tweak it over the coming months, he knows there will be hurdles to jump over. “No matter how good your plan is and how much thought you put into it, once you start living it you’re always going to find your deficiencies somewhere along the line so have to be open to those adjustments all along the way.” www.autoserviceworld.com | JOBBER NEWS / JULY/AUGUST 2017

Borland doesn’t point to one simple back then. There was no person in particular as key to his such thing as import cars,” he said. success, but he does note the role “So I think running automotive was his father, Ian, played. “He worked infinitely easier from an inventory pretty hard for a guy by himself, point of view. It was definitely easier working seven days a week. My in terms of technical knowledge – brothers came into the business once cars were much simpler.” they got old enough. And we’ve Furthermore, failure rates have slowly but steadily grown virtually changed for vehicles. While he since he started. thinks parts like brakes and chassis “He’s the guy that started it; he’s have stayed more or less consistent, Western Bearing’s building in the 1960s the guy that built the foundation, others like belts and spark plugs, for and, you know, the shelf to success is not so hard to get to when example, last far longer than they used to. And since he doesn’t someone already built you the ladder.” serve a major market, Western Bearing knew expansion into At the same time, “I’ve learned little bits from a lot of different other industries was necessary. “Fortunately, we already had one people. I’m always trying to glean little bits of whatever from foot quite heavily invested in an ag, so I took that and expanded wherever.” upon it and kept growing it.” Being part of the Modern Sales Co-op has also been invaluable Borland has been involved in the industry his entire life. He to Borland, from talking to people who run successful businesses did obtain a degree in science, but didn’t find it compelling to seeing how a corporation is run. “They’re industry leaders enough to him. He went back and got his business administrain Canada and getting to spend time at those board meetings tion degree. “That’s where I started to really get my legs for means you can dig a bit deeper into what it is they’re doing and business and realized that I really enjoyed business. Particularly why they do it.” marketing and inventory marketing – all that kind of stuff really And the times have changed since Borland’s father ran the makes me tick,” Borland said. continued on page 24 shop. “When I was a kid, the automotive industry was very

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www.modernsales.ca On behalf of all your friends at Modern Sales Co-op, Congratulations

WESTERN BEARING! JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

cover feature | jobber of the year And when his brother, Lorne, who was running Western Bearing, was looking to retire, it created the opening for Borland to easily slide into the helm. He realized that he had an opportunity to take over a business that he saw as well-run and established in the community for decades. “I came in and started putting my stamp

on it with a new perspective,” he said, adding that he made subtle changes and maintained the focus on the company’s core customers – agricultural producers. Included in consideration for the award, the jobber needs to show community involvement. Western Bearing certainly takes its time to work with many of Portage’s local groups, such

Aiming High at Western Bearing No matter how good your plan is and how much thought you put into it, once you start living it you’re always going to find your deficiencies somewhere along the line so just be open to those adjustments all along the way.

Congratulations, Doug Borland 2017 Jobber News Jobber of the Year!

– DOUG BORLAND, WESTERN BEARING AND AUTO PARTS

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as the Lions Club, the town’s hospital and the local cancer care foundation. The business also takes the time to help smaller community clubs that often struggle to keep going, Borland said. “They’ll run fundraising events throughout the year, which we always contribute prizes and whatever, too.” In receiving the Jobber of the Year Award, Borland admitted it was “a wakeup call” that maybe he has done a few things right during his tenure. “I think the funny thing is, in my world, I spend most of my time thinking of all the

www.autoserviceworld.com | JOBBER NEWS / JULY/AUGUST 2017

They’re a good company all around. They’re local. It’s good to have him in town, so we use him as much as possible. – RICK HEBERT, MOON CONSTRUCTION

ing too much time fixated on all the things that you think you haven’t done well enough.” It’s advice he would impart on his fellow jobbers – always think about the future, but enjoy the ride. “I come to work, I’ve always got a million things to do, and challenges to face but I’m very much thinking about all the things that we can do better. I personally don’t think I’ve taken enough time to sit back and go, ‘Aha, boy, we’ve done quite well.” It’s not that he beats himself up every day, but he wishes he had taken more time to appreciate the small wins and hopes other jobbers are indeed taking that time.

“You just put your nose to the grindstone and you get on it and you just stay on it. Hopefully, once in a while, you remember to look up and go, ‘OK, we’ve actually gotten somewhere.’ Look up and celebrate those successes. Because when you’re in the midst of it on a daily basis, I think it’s very difficult to remember to do that.” And, he added, it’s important to not let the challenges get the best of you. “I love coming to work. You know you can get some miserable days because you’ve got some nasty things to do or you’ve got stuff you have to deal with that you may not like, but by and large, it doesn’t really matter,” he said. “I feel like I’m a pretty lucky guy.” JN

Congratulations Western Bearing & Auto Parts 2017 Jobber News Jobber of the Year From the following proud partners:

things that I haven’t done and need to do, and all the things I wish we’d done,” he said. “You’re always a much harsher judge of yourself than probably you should be, so it’s very nice when you sit back and kind of go ‘Oh, you know, maybe we’re not so terrible after all.’ “It’s kind of a wake-up call to maybe switch your focus and the way you’re looking at things and realize that maybe you’ve got more successes and failures under your belt,” he added. “I’m looking at everything I need to do to improve, so you have that mindset that you’re spendJOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

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market tracker | filter focus

BY DONALEE MOULTON

There are many 12-year-old cars still in great condition, well taken care of and still have a high value in resale. – JAY BUCKLEY, FRAM FILTERS

filter sales

REQUIRE UNDERSTANDING THE CAR AND CUSTOMER

Photo: Mihajlo Maricic, iStockphoto.com

Premium products play key role as vehicles age

anadians and their cars are aging. A 2011 study by DesRosiers Automotive Consultants in Richmond Hill, Ont., determined that the number of vehicles on the road between five and 10 years old had jumped 29 per cent over five years. The number of cars and trucks 16 years or older had increased by 20 per cent. Now

the latest research from IHS Markit has found that the average age of a car in the United States is 11.6 years. The age of a vehicle plays a key role when it comes to the sale of premium oil filters. Jay Buckley, director of technical training with Fram Filters in Detroit points out that age and quality often go hand

JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

”

in hand – and can determine the level of interest in purchasing a premium filter. “There are many 12-year-old cars still in great condition, well taken care of and still have a high value in resale,” he said. “These are easy to sell premium filters to that type of owner. There are also 12-year-old cars that are rusty and in poor condition; this owner will always buy economy products.” Tailoring the sale to the customer is critical. The quality of the car, the care the owner takes in maintaining the car, the driver’s knowledge and understanding of filters, and past purchasing habits are all important considerations when it comes to successfully selling a premium filter. Another important factor is outright ownership: are payments still being made on the car? “Most end-customers still paying on car loans want to take the best care of the car as possible,” Buckley said. “Start by offering the best [filter],” he recommended. “Down-sell if needed, but it is always easier to start from the top.” It is also helpful to put the sale into perspective for the customer. Most passenger car and light truck vehicles built in the last 20 years are equipped with an oil and filter change reminder system. Older vehicles generally use an odometer-based interval reminder while most vehicles built in the last 10 years have an intelligent system that monitors key operating conditions and alerts the driver to change the oil and filter based on how the vehicle is driven. continues on page 28

market tracker | filter focus

“

Helping the customer make the right choice is the best way to gain new customers and maintain current ones. – EDWARD COVINGTON, MANN+HUMMEL, WIX

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“If a person relies on the engine’s computer, chose a premium filter designed for computer technology,” said Edward Covington, Mann+Hummel Filtration Technology’s director of quality and product information for the Wix brand in Gastonia, N.C.“Based on what you drive and how you drive, your computer recommendation may be anywhere between 3,750 and 10,000 miles, even longer on a few vehicles with very large oil capacities.” Filter sales should reflect the specifics of the customer’s car use. An oil change interval of 3,000 to 5,000 miles is typical for normal driving. However, the engine oil life monitor service interval for vehicles in severe driving conditions or extremely harsh conditions such as towing or hauling will be different. “Chose the filter rated for each of these driving conditions,” Covington said. End-customers should also be cautioned about high-mileage filters. Drivers can confuse the terms “extended” or “high-mileage” with a recommendation to go longer than the original equipment manufacturer’s recommended oil and filter change intervals, noted Covington. “While a select few products advertise longer intervals, most do not warrant the change interval past the OEM recommendation. “The most trusted solution is to recommend a premium filter for the OEM-recommended change interval for severe conditions or a product specifically recommended for harsh driving conditions throughout the OEM-recommended change interval,” he said. Last year HUBB introduced the first

oil filter to the automotive aftermarket backed with a 160,000-km performance guarantee. Now the California-based company has rolled out its three- and eight-inch oil filters, both reusable and cleanable. According to the company, the filter-in-a-filter design enables vehicles to double oil change intervals and reduce oil change costs by up to 50 per cent while increasing engine protection and eliminating used filter disposal. Continued and substantive changes in the aftermarket industry also affect the ability to sell new and premium filters to customers. This year, for example, Mann+Hummel, unveiled Wavelock, a new spin-on filter system for oil and fuel filters as original equipment for compressors and combustion engines. The filter change can be easily and quickly made without the need for tools. In addition, the component cleanliness is considerably improved and the risk of a contamination of the fluid circulation system is reduced. It’s imperative that salespeople understand the advances in the industry and what this means for the automotive aftermarket and for owners of cars of all ages. “It is easy to sell premium filters if you can explain the benefits to the customer,” Buckley said. “Knowledgeable counter people are key to selling premium products.” He noted, for example, that most techs do not realize that low-budget economy filters may not have the capacity to go through today’s extended drain intervals and that can result in the vehicle owner continues on page 31

www.autoserviceworld.com | JOBBER NEWS / JULY/AUGUST 2017

Photo: shaunl, iStockphoto.com

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market tracker | filter focus

“

At the end of the day, [they want] an honest recommendation based on what they drive, how they drive, where they drive and when they want to change their oil and filter.

”

– EDWARD COVINGTON, MANN+HUMMEL FILTRATION TECHNOLOGY

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driving around with the filter in bypass because it is full. For end-customers, a product purchase is often less about its specific attributes and more about the relationship with the aftermarket dealer. “At the end of the day, [they want] an honest recommendation based on what they drive, how they drive, where they drive and when they want to change their oil and filter,” Covington said. The trust factor is particularly relevant for drivers whose vehicles are no longer under warranty and who may be feeling out of their depth in an automotive environment. They are not an atypical group – and there are likely to be more customers relying on the advice of counter people in the future. Two factors are at play. Fallout from the 2008 recession is keeping money-savvy and still wary owners hanging on to their vehicles longer. And those vehicles are a higher quality than ever before. There are also more of them, the 2016 IHS Markit study found. Registrations for light vehicles in operation (VIO) in the U.S. reached a record level of more than 264 million – an increase of more than 6.2 million (2.4 per cent) over the previous year. This represents the highest annual increase the auto industry has seen south of the border since VIO tracking began. And it breaks the 2015 record of 2.1 per cent growth. This has important implications for aftermarket sales of oil filters and other products. Mark Seng, IHS Markit’s director of global automotive aftermarket practice in Southfield, Mich., calls it a coup for the automotive aftermarket industry. “Increasing numbers of vehicles on the road builds a new business pipeline for the aftermarket,” he said. “A larger fleet means more vehicles that will need repair work and service in the future.” Servicing that market, including selling premium and other oil filters, will come down to one essential ingredient: customer service. “Helping the customer make the right choice is the best way to gain new customers and maintain current ones,” stressed Covington. “As technology evolves, customers rely on sound, honest and expert advice from a trusted source.” JN

www.autoserviceworld.com | JOBBER NEWS / JULY/AUGUST 2017

KEEPS YOU AHEAD OF THE CURVE

our best connection to the More than auto parts world happens at AAPEX as more than 2,200 exhibiting companies are already lined up for the 2017 event in Las exhibiting Vegas. The latest new products, companies are services and technologies in more expected to than 65 categories will be showparticipate in cased, while automotive aftermarAAPEX 2017. ket manufacturers and suppliers stand ready to answer your questions to keep you ahead of the curve in today’s high-tech world. “This is the one show you want to attend if you are serious about growing your business and staying up on current trends,” said AAPEX attendee Steven Blair, owner, Murray’s Parts City, Walled Lake, Mich. With so much to see and do at AAPEX, make sure to visit the New Product and New Packaging Showcases for the very latest products and innovative packaging designs. On the show floor, don’t miss the all-new Technology Intersection for a look at technology not yet available in the aftermarket. A new Mobility Park, located behind the Sands Expo Center in the LINQ lot outside, will demonstrate today’s aftermarket technology with scan tool engine demonstrations, underhood training, a 3D print area, and electric vehicles. For easy navigation, the show floor also will include designated sections for Tools & Equipment, Remanufacturing, Heating and A/C, Paint & Body and the Automotive Warehouse Distributors Association (AWDA). In addition to visiting the show floor, set aside some time to participate in AAPEXedu sessions to learn more about the latest trends and technologies. This year, new partners have joined the education lineup to expand the AAPEXedu program. For the first time, Northwood University will offer sessions as part of the AAPEXedu, while the Automotive Service Association (ASA) and AVI will provide technical training sessions. The Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA) also will host sessions tailored to each of the communities within AAPEX. NARSA – the International Heat Transfer Association – will offer a program on the latest trends and technologies in heating and cooling systems. AAPEXedu topics will include telematics, connected vehicles,

2,200

JOBBER NEWS / NOVEMBER 2016 |www.autoserviceworld.com

Advanced Driver Assistance Systems (ADAS), vehicle data access, alternate fuel and drive train options, and Vehicle-toVehicle (V2V) communication and new mobility models. The information-packed “Aftermarket Outlook” and “Five Trends in Five Minutes” sessions will return with the latest market intelligence and research to help you identify opportunities to diversify and grow your business. A day-long REMANedu Conference, which also is part of AAPEXedu, will take place on Monday, Oct. 30. The Conference is a multi-faceted education and networking forum dedicated to remanufacturing. Let’s Tech also returns to AAPEX 2017 with a new lineup of short, 20-minute or less presentations. Topics will include new mobile apps, emerging vehicle technologies and technologydriven new products. All Let’s Tech presentations and AAPEXedu sessions, including the REMANedu Conference, are included in the $40 (U.S.) online attendee registration fee. To register, visit www.aapexshow.com/adv. AAPEX 2017 will take place Tuesday, Oct. 31 through Thursday, Nov. 2, at the Sands Expo in Las Vegas. The event is expected to draw 44,000 targeted buyers. Approximately 158,000 automotive aftermarket professionals from more than 140 countries are projected to be in Las Vegas during AAPEX and the SEMA Show. AAPEX represents the $740 billion global automotive aftermarket industry and is co-owned by the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA), the light vehicle aftermarket division of the Motor & Equipment Manufacturers Association (MEMA). For more information, visit the AAPEX website, www.aapexshow.com or e-mail: info@aapexshow.com. On social media, follow #AAPEX17 to stay-up-to-date on this year’s event. CONTACT INFORMATION:

AAPEX Event Management William T. Glasgow, Inc. 10070 W. 190th Place, Mokena, IL 60448 Tel: 708.226.1300 | Fax: 708.226.1310 E-mail: info@aapexshow.com

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social media 101 |

BY LUCIANA NECHITA AND MARTHA UNIACKE BREEN

WHAT

facebook insights CAN TELL YOU

Photo: Sentavio, iStockphotos.com

Creating content that produces the strongest and most consistent response from your Facebook activities is a constant challenge. Wouldn’t it be great to have a more precise way to understand how people are responding to your page, beyond just counting likes? Well, Facebook has that covered, and it’s one of the most useful aspects of maintaining a Facebook page in the first place. Facebook Insights, found by clicking the tab at the top of your page, breaks down responses according to a number of specific parameters. Using the data that Insights provides, you can instantly get a handle on who’s following you, the best times of day (and days of the week) to post, and most importantly, the kind of content that your followers respond to most readily (positive or negative). It’s a goldmine for helping you post content that gets the results you want. It’s difficult to give you a comprehensive analysis of everything that Insights can tell you, but here’s a whirlwind tour of its different sections and what they highlight. Overview The Page Summary tallies some of the key metrics of your page for a specified period (yesterday, last seven days, last 28 days, etc.), as well as the number of likes, page views, reach (i.e., the number of people to whom the post was exposed through Facebook algorithms, regardless of whether they responded or not), and post engagements: likes, reactions (alternate emojis at the bottom of a post such as heart, laughing face, mad face, etc.), comments, or shares. Pages To Watch shows activity on pages similar to yours, such as competitors’ pages; what works for them may work for you too. Promotions This is where you can create a promotion ad to get more sales, more visitors to your website, promote your business locally, and promote your Facebook page. JOBBER NEWS / JULY/AUGUST 2017 |www.autoserviceworld.com

Followers This is the one place where you can get insights into who is following you. You can select time periods for comparison, find out the number of net followers (new followers minus unfollows), as well as where your page follows happened – a promotion you had on your website, for example, or through a third-party ad. Likes Beyond Total Page Likes As Of Today (or another specified time period), this section shows you Net Likes (likes minus unlikes), and Where Your Page Likes Happened by location and source (unique page views, or through ads or links). Reach Post Reach tracks the total number of people your post was exposed to (via algorithms), regardless of whether people clicked on it or not, as opposed to sponsored posts or ads. Reactions/Comments/Shares is crucial, since it shows how often users actively engaged with the content, which is much more enlightening than simply tallying the number of likes. Reaction emojis, for example, usually indicate a stronger emotional response than an ordinary “like.” Hide/Report as spam/Unlikes tallies negative reactions, which can be as enlightening as positive responses, since they tell you what your viewers don’t want. Total Reach summarizes all the overall exposures your page received. Page views This adds up which individual sections of your page were viewed and by whom, and how viewers found the page. Total Views is the number of times the page was viewed overall. This is separate from the Total People Who Viewed figure; a single person who views your page five times will show as five views, continued on page 34

social media 101 |

but just one viewer. Top Sources analyzes how they found your page: through a Google or Facebook search, through a link on your website, or other sources. Actions on page This tallies what viewers clicked on once they were on your page, such as your “about us” and location/contact info, or special action buttons you’ve set up such as coupons. It also gives you a detailed description of who clicked based on age, gender, country/city, and device. Posts A section that zeros in on how well your posts are performing, and shows when your fans are reading the posts. It also indicates the performance of different Post Types, such as photos, videos or text; and Top Posts from Pages You Watch (again, seeing what works for competitors can point to what will work for you). Videos Same as posts, but for videos, and counts how many times the video was watched for ten seconds, indicating insufficient interest. Events Analyzes the performance of any special event page you might have set up such as sales and promotions, and allows you to compare current and upcoming events’ performance.

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People This provides the all-important overview of Fans and others who are reading your page, by location, age, gender, and other demographics; and separates People Reached from People Engaged, indicating what percentage of the people who saw your page were interested enough to interact with it. Messages You can get a handle on your Facebook Messenger activity by tallying and analyzing conversations with viewers. Elements such as the timeliness of your response times are starred, like Amazon reviews, from fast to not-so-fast. (If you don’t tend to check your Messenger activity regularly, you can always indicate this in your About Us section, by encouraging people to call or email your company directly.) It also notes how many viewers deleted, marked as spam, or blocked your conversations. All of this information can provide crucial insights on how to tailor your content for maximum engagement from those who visit your page. Great content isn’t a matter of chance; the better you can engage and intrigue the viewers you want to attract, the likelier they’ll be to follow you regularly – and eventually, make the conversion from fans to customers. JN Luciana Nechita is director of public affairs at AIA Canada; Martha Uniacke Breen is contributing editor of Jobber News.

www.autoserviceworld.com | JOBBER NEWS / JULY/AUGUST 2017

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money & management |

PLAN FOR GRADUAL INSTEAD OF QUICK EXIT There are many ways to map out your goodbye anadians are aging and our entrepreneurs are aging even faster. According to the Canadian Venture Capital and Private Equity Association, over the next 12 years, more than half of the country’s medium sized business owners in the automotive aftermarket are expected to retire. In the entire entrepreneurial community, it is expected that more than 56 per cent will need to retire in less than nine years. An estimated $1 trillion in business assets are expected to change hands over the next decade, representing the largest turnover of economic control in generations. Those statistics are stunning. The apparent lack of preparation could backfire on some business owners Succession planning should be a deliberate process instead of a one-time event. Business succession planning is an investment in the future of their company for the owners, employees and customers. Planning is the key to future success for everyone whose efforts have helped the business to grow. The existence of a succession plan emphasizes commitment to a company’s long-term growth, and creates confidence among shareholders, lenders, employees and suppliers. Do you want to sell the entire company in due course? Do you want to sell some now and complete the rest of your liquidity later? Is it important to you that ownership remain with family members or managers? Do you want them to have control or just minority equity participation alongside a new owner? Business owners have various alternative options. The first step should be to have a professional business valuation firm prepare an assessment of the value of your company. Answering the questions posed above can be time consuming and should not be rushed. Most owners and in fact most businesses are not ready for the sale process to begin immediately.

Photo: Jxubingruo, iStockphoto

If you can prudently diversify the family net worth by taking some chips off the table now, you can better plan for the sale of the rest of the company, and probably at an improved valuation.

That is why many owners find a gradual exit less alarming than an immediate one. If you can prudently diversify the family net worth by taking some chips off the table now, you can better plan for the sale of the rest of the company, and probably at an improved valuation. Most family business owners don’t build their businesses with selling them as a top priority, but more should. This involves drafting a written strategic plan for the future priorities and direction of their business, and putting in place next generation management so the business can grow and prosper without them. Following these steps, and starting succession planning early, will ensure an effective process, with due consideration given to the range of issues and emotions that family business owners usually face. JN

Mark Borkowski is president of Mercantile Mergers & Acquisitions Corporation. Mercantile is a mid market M&A brokerage firm. He can be contacted at mark@mercantilema.com or www.mercantilemergersacquisitions.com

BY MARK BORKOWSKI

www.autoserviceworld.com | JOBBER NEWS / JULY/AUGUST 2017

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