Truck Parts and Service

June 2014

Truck Parts and Service | Heavy Duty Trucking, Aftermarket, Service Info

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2 W e all know that feeling. You're at an event or listening to a webinar and someone throws a fact or fi gure you just can't comprehend. Your ears perk up; you cock your head to the side and think to yourself, 'No, that can't be right.' Then you do a little digging and sure enough, it is. That happened to me last month at the Global Automotive Aftermarket Symposium. I was attending an industry update presentation by MacKay & Company's John Blodgett when I heard something I just couldn't believe. Recent MacKay & Co. research shows 75 percent of all service hours recorded in the commercial vehicle aftermarket in 2013 were logged by end users' techni- cians (fl eets and owner operators). Dealers stood in second place with 9 percent, and independent service techs followed with just 8 percent. That might not seem unusual to you, but it fl oored me. Seventy-fi ve percent? I think I would've pegged that num- ber above 50 percent, but 75 percent never even crossed my mind. Service has been the hot topic at after- market trade shows for several years. I've heard countless industry professionals tell me fl eets want to outsource service, and that service is the next great growth opportunity for the aftermarket. Blodgett says MacKay's research continues to back that up — when asked, fl eets are still saying they want to out- source more service — but when you look at the raw numbers, nothing is changing. Why? According to MacKay & Co. research, Blodgett says fl eet apprehension comes from three major concerns: quality of service (26 percent), cost of service (26 percent) and downtime (24 percent). At this point fl eets just don't think there's anyone out there who can con- sistently do a better job than their own guys. So how does the aftermarket change that perception? Be prepared: This is one area where the aftermarket is on the right track, as MacKay & Co. data shows training is the most sought after resource distribu- tors and service providers request from their suppliers. Fleets want to outsource their assets to experts, and aftermarket operations willing to offer component expertise and service best practices to their employees stand a better chance of pulling in potential service work. Be effi cient: Fleets don't want to bring a truck to a service provider and fi nd out eight hours later the garage doesn't have the part they need. Running a service operation requires an ability to carry additional inventory and wider selection of parts. Fleets are more willing to let a truck sit in their bay than yours. Don't advertise superior turnaround times if you know you can't deliver. Be available: Though not directly listed in the top three concerns, Blodgett says fl eets also have concerns about the availability of aftermarket service opera- tions. MacKay & Co. research indicates most fl eets prefer to travel less than 20 miles for vehicle repairs, with only niche repairs like collision/body shop work being worthy of a 30-plus minute drive. "We've had fl eets question if the after- market even has enough techs and ser- vice bays to service them if they decided to outsource," Blodgett says. And it's worth noting, fl eet garages aren't perfect operations, either. They re- cord 75 percent of all aftermarket service hours but are the fi nal point of sale for only 61 percent of aftermarket parts. That means there's an area to gain ground. Aftermarket service operations require less hours to install parts than their fl eet counterparts. With an older fl eet population (9-plus years) becoming the industry's 'new normal,' Blodgett says service opportu- nities are more likely to increase than disappear. So take what's yours. T R U C K P A R T S & S E R V I C E | J u n e 2 0 1 4 The scary truth about service By Lucas Deal, Editor lucasdeal@randallreilly.com Editorial | Lucas Deal Fleets are more willing to let a truck sit in their bay than your bay.

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