The 2017 AASA Vision Conference began March 29 with nearly 300 participants in the conference and council meetings. Channel partners joined AASA members for the opening sessions of the conference for joint discussions of the new realities in the aftermarket.
AASA President and COO Bill Long initiated the conference theme for discussions by outlining the “three large and undeniable” realities. “First, is that Suppliers Matter…not just to our customers and to motorists, but to U.S. jobs and the economy,” he said. “Motor vehicle suppliers represent the largest sector of manufacturing jobs in the U.S.
“We are a meaningful part of the U.S. economy and a powerful force in driving innovation and technology, both in the aftermarket and in new vehicles … for suppliers, today, represent approximately 77 percent of the value of a new car,” Long continued.
“These are incredibly impressive stats that reflect who we are, what we do and what we represent. I know you’ll agree with me when I say, it is truly a great industry to be a part of. To say it another way, we produce the parts that enable the continued freedom of mobility for millions of motorists,” he said.
“The second undeniable reality is that the aftermarket is solid and steady,” he continued. “The aftermarket continues to grow 3-4 percent annually and now stands at $265 billion. In addition, the pieces of the industry puzzle – average vehicle age, miles driven, the size of the car parc and low unemployment – all fit together nicely to form a solid foundation.”
Long noted that another undeniable reality is it’s anything but business as usual in the aftermarket. “Virtually everything we do, or the way that we do it, has changed … A new and different aftermarket isn’t coming, it’s here,” he said.
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The key presentation in the AASA member-only session which concluded the conference was a joint presentation by Long and Paul McCarthy, MEMA senior vice president of strategy and AASA executive vice president, “Talk from the Top: Key Learnings.”
Long and McCarthy relayed the consensus of conversations with top aftermarket supply chain partners. Among the key points from these conversations were customers’ views that:
- Business is good … but not “business as usual.”
- Change is slow … but accelerating quickly.
- Customers need suppliers … as much as suppliers need customers.
Customers shared their views on a wide range of topics including the economy, inflation, interest rates, trade and tax reform, new technology, growth product categories, product returns, product quality, millennials, ride-sharing, branding and differentiation.
“Most of the big players generously gave us our time and saw value in this conversation,” McCarthy said. “Their interest demonstrates importance of suppliers to their success … and we confirmed with all: there are gaps in the conversation,” he added.
The AASA Vision Conference concludes today with “Connected Councils,” meetings of three councils with networking between the groups at joint breaks and a luncheon. Today’s meetings include the AASA Technology Council (ATC), AASA Marketing Executives Council (MEC) and the Filter Manufacturers Council (FMC). The AASA Intellectual Property Council (IPC) met on March 29.
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