Focus forward

During the course of researching the article and interviewing numerous industry leaders, we compile more interesting insights and valuable information than there is space to print. So, following are worthwhile comments and observations that may help with business planning and forecasting as we prepare for a year sure to bring more market uncertainty and economic surprises.

On the service and repair market …

Generally, the performance of the service and repair market mirrors that of the parts market. Last year was no exception, and end users are modifying their aftermarket needs and expecting parts and service providers to do the same:

• “We can see the economic stress with service customers just by their changing attitudes on preventive maintenance and down time. Instead of addressing all issues with a vehicle, which can cause a roadside breakdown or down time, they are only addressing the immediate drivability or safety issue in front of them. You can tell that the small customers do not have the money, the government facilities do not have the budget and the large companies have had their maintenance guidelines adjusted.” – Frank Camerota, president of Camerota Truck Parts
• “Whenever you see the economy slowing down, you see a tendency toward choosing repair over replacement and we saw a definite trend in this direction.” – Phil Warmbier, global aftermarket marketing manager, Eaton Corporation
• “The only trend we observed was that if four items needed repair, we used to get approval on three. Now, we get approval on one.” – Neil Middleton, CEO of Middleton and Meads Co.
• “Going forward, the complexity of the truck will change with proposed regulations moving past mpg (miles per gallon) and emissions to safety. Dealers and independent repair garages have maintained their share of the service market over the past few years. What will impact the near term is the diagnostic tooling – diagnosing the truck versus a component or system. Training needs to be recognized as a self-directed process now versus waiting for the new technology to walk through the door.” – Jerry Weis, president of Ott’s Friction Supply, Inc.

On business fundamentals …
During good times and bad, staying true to the business principles and practices that made you successful will keep you going into the future:

• “Serve the customer, focus on the customer, don’t take your eye off the ball. And it’s easy to do that when you’re getting economic pressures from your own business, if you’re spending too much time with your banker rather than focusing on customers. The key is to keep your focus on the customers, keep them satisfied and have what they need.” – John Flad, vice president for Aftermarket Sales, North America, Bendix Commercial Vehicle Systems
• “Pricing is always a factor, however we believe that customers still do business with suppliers that take care of their needs in a consistent and fair manner, everyday. We strive to prove to our customers that we will continue to be there, everyday, to meet and exceed their expectations.” – Charles Weston, president and CEO of Westpac Heavy Duty
• “The companies that offer great service at competitive prices have an advantage. We also see those distributors who focus on ‘ease of business’ solutions (product line breadth, B2B e-commerce, etc.) as being the long-term winners.” – Mike Betts, president of Betts Truck Parts and Service.

On optimism for the new year …
And, lastly, while it is easy to focus on and worry about the abundance of bad news in 2008, there are reasons for optimism in 2009 and cause for keeping a positive outlook. “As in any tough year, opportunities present themselves and some businesses are able to grow market share,” says Charles Weston, president and CEO of Westpac Heavy Duty. “This newly acquired market share will help keep people employed today and will lead to profitability in the future.”