This conversation is meant to make you aware that this industry will face challenges over the next few years. I’m sure you’ve read about how in the last 20 years the automotive industry is changing in ways that will cause many shops to close or threaten the way we currently do business. It’s true — there are so many changes occurring today that will have a significant impact to your livelihood unless you grab the opportunity to separate your business from the rest. This opportunity is huge.
Let’s look at the evidence that deserves our attention. First, the tidal wave of technology that is being installed on today’s new vehicles. Mass-produced hybrid vehicle technology is now 20 years old. Think about that: the first Prius was released in Japan in 1997 and in the US in 2000. You used to notice a Prius on the road because it stood out. Today, hybrids blend in like any other vehicle. In our industry, there are thousands of experienced techs who have never known a business that didn’t consider hybrid cars. For many years, I’ve stated that hybrid vehicle technology is a transition technology meant to learn our way to Fuel Cell Vehicles while providing time to build the infrastructure for FCVs or Battery Electric Vehicles (BEV). Well, that transition process is happening and is providing tremendous opportunity for you to grow and transition your team’s technical skills.
On the other end of the technology spectrum is the good old Internal Combustion Engine (ICE). Innovation within ICE is still an important element of the transition strategy for all OEMs. Sure, you may have heard the news that the OEMs are preparing to stop building ICE-powered vehicles in the next 10 years. In that time, however, they will continue to enhance ICE technologies to support the transition and those vehicles, of which there will be millions, will be in your bays seeking service for many years to come.
For evidence of this, look at the 2019 Infinity QX50 SUV powered by a revolutionary variable compression turbocharged 2.0L 4-cylinder engine that promises to cure many of the issues with GDI such as LSPI (low speed pre ignition) and carbon contamination while increasing fuel economy and retaining tremendous power output. Search Infinity VC-T on YouTube and you’ll find some very good animations that illustrate this technology. So, what does this mean to your shop? The simple answer is: your shop needs to be ready. There are hundreds of technology changes that impact your ability to serve your customers. Simply learning on the job isn’t good enough anymore; with the complexity of new technologies and the sheer number of these changes, many shops are going to struggle to solve things in time. You and your team must become a researcher of change and learn about these technologies before they arrive in your shop.
Next, let’s consider the changes in the way our industry is perceived by our customers, and why that is. The world we live in is changing, with disruptors impacting industries of all kinds. Think about the ride share industry. For many of us, attending AAPEX/SEMA every year meant taking a taxi to various meetings and events. Now, that’s the more difficult way to get around. Uber and Lyft created an experience that was such a positive difference from the norm that it became a huge success. Another example is Amazon and the success they’ve experienced moving retail activity from brick and mortar to the convenience of your phone or computer. Disruptive innovation is often staring industries in the face. The automotive aftermarket needs to be prepared.
Large investors are making buys at both ends of the supply chain, consolidating ownership of manufacturing, repair facilities and distribution channels. And of course, there is always the potential for a group like Amazon to dive into parts industry more than it already has. While I don’t know what’s next, experience tells me there will be some significant disruption that changes the way we operate in the near future. The key to this for your businesses is awareness. Be ready for your team and your customers.
There is huge opportunity here. Consider what these disruptors are providing to the consumer. In almost every case, the change is greater convenience. Uber gives you control over your transportation. No waiting on a taxi to show. No wasted time and dollars on a rental car when all you need is to get across town and back. Amazon saves you a trip to the store, the ability to comparison shop without the hassle and saves you from dealing with crowds. If time is the commodity disruptors are creating for their customers, how is your business and team preparing or adapting to that trend?
Many of you are already doing this and don’t even realize it. I see examples everywhere. Creating reserved parking spots for your customers with appointments. Providing rental or loaner vehicles. Handling warranty repairs by delivering a customer’s vehicle to the dealer and picking it up so your customer doesn’t have to. Shuttle services and workstations in your waiting area. These are a few of the most common. The challenge is to differentiate yourself from everyone else. Maybe for your business that means extending your service bays or installing hyper efficient workflow processes in your shop. Or, advancing your business model from one that waits for the customer to come to you to a model that proactively takes your value proposition to your customer. More on those ideas in future columns.
Most important, innovation doesn’t happen without someone taking the first step. Take the time to sit down with your team and discuss ways to disrupt the norm. Brainstorm things that might make your customers’ lives better. Don’t get stalled in trying something new just because someone else said an idea wouldn’t work in the past. Those that are bold will be standing on the top of our industry 10 years from now. Convenience and innovation, it’s what your customers want!
