MacKay & Company has updated its annual DataMac Canadian Distribution report.
With 119 Canadian businesses serving the medium- and heavy-duty commercial vehicle industry (dealers, distributors, HDDs, independent garages, auto parts stores and others) providing data and information, a number of relevant business areas are highlighted in the report. Parts and service labor sales, inventory changes and parts sourcing practices are included as well as many other business insights.
It has been an interesting couple of years for parts providers in the U.S. and in Canada as channels have managed their inventory levels through historically high price increases and significant supply chain issues brought on by the pandemic.
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“Balancing the need of having parts available to meet customer demand against other external factors has been challenging to say the least, but it appears parts availability issues are ironing out for most channels, while some shifts in the overall sourcing are still apparent,” says Molly MacKay Zacker.
OE sources continue to command the largest share of the market, but distribution points have increased purchases from non-OE channels compared to prior years in search of parts availability and price points for their customers.
At 78% of the total, parts sales and service labor account for the primary sources of truck and trailer business revenue in 2023. Similarly, parts sales and service labor also represent the largest portions of profit across all channels, combined they total 85%.
Additionally, parts sales revenues hold a higher share of the revenue than one year ago — 56% compared to 47%. The largest year-over-year shift in profits is seen in service labor; with 2023 totaling 29% and 2024 coming in at 31%. Pricing may be the driving factor here.
For more information on this report and other research completed by MacKay and Company please reach out to John Blodgett at [email protected].
