Heavy Duty Aftermarket Week
Electrics, electronics and e-commerce transforming the aftermarket
LAS VEGAS, Nev. – The repair and upkeep of Canada’s Class 6-8 trucks and trailers is no small matter. Analysts at MacKay and Company say the business is worth $4 billion a year and growing. And it’s being radically transformed before our eyes.
Parts is Parts? Hardly. Observations from Heavy Duty Aftermarket Week.
LAS VEGAS, NV -- Children of the 1980s might recall a Wendy’s commercial that mocked the quality of chicken sandwiches from competing fast food chains. “Parts is parts,” the cashier for a generic restaurant says with a shrug, suggesting different pieces can be fused together into some sort of processed Frankenchicken. There are clearly differences in parts, though.
Denso expanding on PowerEdge
LAS VEGAS, NV – Denso Products and Services Americas is building on its PowerEdge Diesel Aftertreatment Program, expanding the coverage for its Diesel Particulate Filters. By this spring it will also offer full coverage of Diesel Oxidation Catalysts. “We recognized the need for an all-new program as costs associated with core management rise and core fallout increases,” says Joe Mejaly, senior vice president. “In addition, we are employing cutting edge technology to improve both the quality and performance of our product offering.”
Group looks for common parts language
LAS VEGAS, NV – A Brockville, Ontario, business is playing a leading role in a North American initiative that hopes to bring order to the chaos of describing truck parts. The Autocare Association’s HDDA Heavy Duty arm is working with suppliers to adopt common ways to describe the different components, leveraging the expertise of Canada’s Pricdex Software. The advantage is that distributors and their customers would more easily be able to compare one offering to the next.
Stable economic growth to continue in U.S.
LAS VEGAS, NV – The U.S. government itself shut down over the weekend, but the overall economy of Canada’s largest trading partner seems to be in good shape. The country’s Gross Domestic Product expanded by 2.3% over the past year. “This is, all in all, a decent number but not an impressive number,” said Bill Strauss, senior economist and economic advisor with the Chicago Federal Reserve. Annual growth experienced in the 1990s was closer to 3-4%. But steady growth like this can be good news, easing the concern about a market correction, he told a crowd at the Heavy Duty Dialogue in Las Vegas. The country is in the midst of its third-longest expansion in history, now in its ninth year.
Haldex partners with Fras-le on disc brakes
LAS VEGAS, NV – Haldex is bringing its Air Disc Brakes to North America with a “big bang,” says Walter Frankiewicz, president and senior vice president, Haldex North America. The company announced during Heavy Duty Aftermarket Week that it is offering a full line of all-makes Air Disc Brake pad repair kits through a partnership with Fras-le.
Communication key to distributor partnerships
LAS VEGAS, NV – Price plays a role in any business transaction, but strong relationships continue to be a differentiator when it comes to selling truck parts -- even in an era of e-commerce. “It’s changed the way communication happens, but it doesn’t change the type of communication,” says Carl Mesker, SAF Holland’s vice president - aftermarket. “What’s critically important is the relationship and the trust.”
Canada’s heavy-duty aftermarket worth $4.2 billion
LAS VEGAS, NV – Repairing trucks and trailers is big business in Canada, and it’s getting bigger. The nation’s aftermarket serving Class 6-8 trucks and trailers was worth $4.2 billion in 2017, and is projected to reach $4.4 billion this year, according to analysts at MacKay and Company. Parts prices are expected to rise 3.7% because of factors including the Canada-U.S. exchange rate. “Everything looks fairly positive,” says John Blodgett, vice president - sales and marketing, referring to growth in oil activity, the Gross Domestic Product, and international trade. “Obviously if the U.S. screws up NAFTA and provides some issues there … that could potentially have a negative impact. Hopefully level heads will figure that out and we won’t have too much impact from that.” Like most other analysts, the team at MacKay and Company was surprised by the 2017 market for equipment sales. In a good way.
Canada key to Meritor aftermarket strategy
LAS VEGAS, NV – Mississauga, Ontario, will get a new distribution center this April as Meritor refines its North American aftermarket strategy. And it’s not the only way Canada is playing a key role in the company’s broader plans. “The aftermarket team has worked tirelessly this year to improve our delivery accuracy and speed,” says Brett Penzkofer, vice president – North American aftermarket. “Now we ship to customers on a daily basis, wherever they may be.” It’s come a long way.