A DesRosiers Automotive Consultants survey shows a mixed bag of business results for independent aftermarket service shops in Ontario, with more than half reporting a strong 2021 results in year-over-year comparisons, but about a third seeing declines.
This survey, the latest conducted in conjunction with the Automotive Aftermarket Retailers of Ontario, did reveal a varied experience for the independent aftermarket service provider sector, including some supply issues.
“While a majority of service and repair facilities noted sales at or above pre-pandemic levels in 2021, there were still some that faced difficulties” commented Andrew King, Managing Partner at DAC.
“In addition, supply issues impacted the aftermarket in a meaningful way and may have hampered growth even though the larger picture remains positive.”
When asked about their performance for 2021 in more detail, 54% of aftermarket retailers noted sales increases.
Inversely, 33% of respondents noted that sales were down. Interestingly, both extremes were well represented with 20% stating sales increases in excess of ten percent and 19% stating sales decreases in excess of ten percent.
When considering their outlook for 2022, 58% of respondents cited expected sales increases between one and ten percent with 21% expecting no change.
In terms of specific types of jobs, a variety of patterns were evident.
For oil changes and regular maintenance, the majority of respondents cited little change. It was a broadly similar story for both tire change as well as diagnostic work with the largest portion of respondents citing broadly stable sales. For preventative maintenance, on the other hand, respondents saw a wide range of differing performance.
Supply concerns were an area where respondents found much more common ground.
When asked about parts supply challenges stemming from jobbers, 77% had experienced issues with 23% disagreeing. In terms of prices, 47% noted parts prices from jobbers to have been up 0-5% in 2021 with 49% citing increases in excess of six percent.
Moreover, 88% of respondents cited supply issues stemming from new vehicle dealers with just 12% disagreeing. Price changes were similar with 47% citing increases between 0-5% and 45% citing increases in excess of six percent. Very few respondents noted price decreases from either source.
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