Truck Parts and Service

February 2017

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

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4 O n the heels of another Heavy Duty Aftermarket Week (HDAW), the issue of who gets permission to exhibit and to attend again surfaced. For as long as most of us can remember, individuals and other entities with any sort of umbil- ical relationship to a vehicle- producing entity cannot be considered independent and were not invited. However, the lines are becoming more blurred as dealerships are now members of buying groups and these members ARE allowed to participate at HDAW. So what, actually, does "independent" mean? It apparently doesn't mean that any company that sells to the original equip- ment market doesn't get painted with the OEM brush. And it apparently also doesn't mean that any of these same sup- plier companies who sell to the aftermar- ket parts distribution arm of these same OEM companies get the brush treatment as well. Independent means not-affi liated with an OEM, working on the vehicles, but having no direct connection with any vehicle manufacturer. We think. Everybody in the heavy-duty aftermar- ket — regardless of the shingle hanging out front — is dependent on the OEM side of the business. No argument! Were it not our friends from Germany, Sweden, Bellevue and elsewhere putting trucks together, there would be no after- market. Same for the trailer guys, be it Lafayette, City of Industry or somewhere else. EVERYBODY IN THIS AFTER- MARKET BUSINESS IS DEPENDENT; INDEPENDENCE IS A MYTH! The reality of the heavy- duty aftermarket is this: The customer will decide what he buys and where he buys it. Again, no argument! It is up to the individual participants in the after- market arena to provide the products, services and support that the customer demands. Yeah, a national network of OEM dealers might have had an advantage over a loose affi li- ation of "non-OEM distributors" a few years ago — but that's not the case today. Disagree. Large dealer organizations do have an advantage — the advantage of market share, technical information and technicians receiving higher pay. On the fl ip side, "non-OEM distribu- tion" has both the physical coverage, the breadth of product offerings and the brand identifi cation capabilities to match the other guys. And the relationships, for sure, but it is still not easy competing against large dealer organizations. True, independents don't usually get the warranty parts business — but do they really want it, anyway? Warranty work can be a pain in the butt, especially if it's involved with a major recall; clogged shops, paperwork up the yingyang, un- happy customers — who needs it! The "sweet spot" in the heavy-duty aftermarket occurs long after vehicle and component warranties have expired. For most products and components outside the regular maintenance arena trucks and often trailers are in the hands of the second and sometimes third owner. Research shows that "non-OEM distribu- tion" has proven to do a much better job with this customer than competitive channels. The reality of the marketplace is that distribution systems with a direct affi lia- tion to OEMs are picking up market share from those distribution entities without such a tie. They certainly aren't stealing it. They have studied what has made "non- OEM affi liated" distribution successful in the past and have successfully initiated programs to capitalize on this. And they have energized their distribution system to capitalize on what has been learned. It might have been Abraham Lincoln (perhaps the last honest politician from Illinois!) that espoused the philosophy of "keeping your friends close but your en- emies closer." My advice to the guardians of the gates surrounding HDAW would be this: You may enjoy being surrounded by your "friends" — but you stand to learn a good deal from your "enemies." Think about it! T R U C K P A R T S & S E R V I C E | F e b r u a r y 2 0 1 7 Editorial | MacKay & Company Everybody in this aftermarket business is dependent Independent distribution — really? By Stu MacKay, with counterpoints by Molly MacKay Zacker MacKay & Company Stu MacKay started MacKay & Company in 1968. Molly MacKay Zacker has provided counterpoints for the same amount of time.

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