 As the population of automotive dealerships drastically decreases, the aftermarket faces a new set of challenges and opportunities as a result.
The number of dealerships has steadily declined since World War II, says Bruce Weld Edwards, a former GM executive, who spoke at the Automotive Warehouse Distributors Association’s (AWDA) Executive Briefing during the association’s Business & Education Conference on Sunday. Edwards -- who’s now an adjunct professor at Northwood University, as well as serving as president of consulting firm Bruce Weld Edwards LLC -- outlined where the dealership shakeout leaves the aftermarket, particularly in distribution. While the shrinking dealer base creates an advantage for aftermarket parts distribution and service, it conversely could create disadvantages as dealers regroup their marketing efforts and strategies. Approximately 900 of the country’s 20,000 new car dealers will be out of business by the end of the year, with 3,000 more closed up before the end of next year, according to the National Automobile Dealers Association (NADA). But don’t rule out dealerships, because those who remain will become stronger, with more higher-volume dealers than in years past, notes Edwards, who adds that dealers are undergoing a paradigm shift, with an increased emphasis on service and more robust locations. The customer will be the ultimate decider, and the aftermarket will have to be adaptable by using our “flat” global business landscape to convey brand value and convenience, Edwards adds.
The AWDA also took some time to recognize some industry leaders at its annual Las Vegas event. Distribution stalwart E. Fletcher Lord Jr., president and CEO of Replacement Parts, Inc., was awarded the AWDA’s prestigious 2009 Leader of the Year Award. Lord is the fourth member of his company to receive this award, says Bob Egan, from Federal-Mogul, who presented the Leader of the Year recognition. “That speaks volumes about the culture of his company, but even more about its heritage of leaders,” says Egan. The AWDA also gave out the Pursuit of Excellence Award to Rusty Bishop, CEO of Federated Auto Parts, who’s chalked up more than three decades of aftermarket experience. Bishop has advanced the distribution segment by encouraging AWDA members to participate in other aftermarket associations, and as AWDA chair, he has helped develop recommended product data fields, along with creating a Best Practices guide for maximizing one-on-one meetings, says AWDA’s Larry Northup, who presented Bishop with the award. Neal Williams, chairman of the manufacturer’s rep firm N.A. Williams Company, of Atlanta, was given the Martin Fromm Lifetime Achievement Award. Williams’ company is celebrating its 75th year in the aftermarket and was the first manufacturer’s rep firm to join AWDA. The 2009 Art Fisher Memorial Scholarship was awarded to Federal-Mogul Corp. Art Fisher, a former AWDA chair, remained dedicated to training and education throughout his life, and funds from the Art Fisher Scholarship program are presented each year, in the name of the award winner, to an undergraduate student or students enrolled in the Aftermarket Management Program at Northwood University. But this year’s award recognizes Federal-Mogul’s 30,000-square-foot St. Louis training facility in which a number of technicians have been trained, beginning with “Wheel to Wheel Security” and extending to professional training on a range of vehicles and systems, according to AWDA. “I’ve been in the industry for over 35 years and have seen numerous training offerings during that time. I cannot think of a company more deserving of this honor for the years of training that they have provided to our industry,” says Mike Lambert, president of the Automotive Distribution Network.
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