Withstanding consolidation and knowledge transfer were the hot topics during the distributor panel at Heavy Duty Aftermarket Dialogue, presented by MEMA and MacKay & Company, Monday in Grapevine, Texas.
After a busy morning of mixed economic projections, Monday’s afternoon distributor panel, moderated by MEMA's Shannon O'Brien, was a notable shift in tone. With representatives from FleetPride, HDA Truck Pride and Aurora Parts on hand, the panel turned its attention away from sales forecasting and more toward operations and business management. The panelists noted the headwinds facing the general economy and aftermarket in 2024 and beyond, but said the largest concerns for their companies today are no longer exclusively of the parts availability and price variety.
It's making sure their companies can evolve with the industry’s winds of change.
Consolidation is a particular gust from which no business can hide. HDA Truck Pride President and CEO Tina Hubbard said it is natural and logical that some independent aftermarket operations are changing hands as many company founders and owners choose to retire and exit the market. Hubbard said what HDA Truck Pride and other groups can do is not shy away from this reality, but meet it head on.
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She said just as HDA Truck Pride has exiting member principals, they also have members looking to grow. The group has been working to connect those parties to each other so when a distributorship is sold it doesn’t have the exit the network. She also mentioned the success multiple HDA Truck Pride members have had with ESOPs (employee stock ownership programs), and said HDA Truck Pride has worked to educate its entire network to their value.
As a consolidator, FleetPride will continue to look for businesses to add to its network that fits its culture and goals, said President Mike Harris. But Harris also acknowledged with acquisitions comes challenges. Bringing an established business into a new company comes with growing pains, and its only with transparency, through communication and processes, that those pains can be removed.
