Outlook for the automotive service and repair industry in Canada

At the 2024 AIA Canada National Conference, which was held on April 23 and 24 in Toronto, everyone who is anyone in Canada’s auto care sector gathered to speak and learn about the current industry trends and challenges. 

This year, the menu of the annual AIA Canada National Conference, was simple: to connect, learn and discuss trends and challenges in the auto care industry.

Attraction, sustainment and skills improvement

As indicated by the vice-president of sales of Wakefield Canada and outgoing Chair of AIA Canada, Shannon Spano, the Conference is the ideal meeting to find solutions to the issues in the automotive sector.

 “I hope you all leave with great opportunities and inspired to create action for the sector,” she said.

President and CEO of AIA Canada, Jean-François Champagne, CAE, and a following round table highlighted the labour challenges facing the auto care sector.

“Right now, our biggest challenge is labour. Our capacity to grow and sustain the growth of the industry depends on our capacity to attract and retain great talent. It is hard but we are all rising to the occasion and finding new ways to overcome this challenge. It is connecting people in this industry, from the decision makers to the ones shaping the industry that are finding new ways to attract new people and talent.” 

He added: “I would be remiss if I did not mention our continued commitment to the up-skilling of the workforce in the collision sector with the I-CAR Canada program. We continue to actively up-skill thousands of collision sector employees and will continue to do so for years to come.” 

On his side, Alan McClelland of Centennial College said that “Supply of labour is a huge issue. I think it comes down to finding people, rather than trying to attract; how do we find people that are worth investing in and finding people who are a good fit within the organization. They may not be exactly what you are looking for but there are opportunities to develop those skills.”

Kevin Weaver of Georgian College added: “It is about attracting youth and attracting them early and inspiring them to careers and career pathways in our sector. Our youth are not hearing about mobility and non-linear careers. They want opportunities in sectors that are part of the greater good. They are looking for companies that will give them growth and prosperity over time.” 

Technological and sociological issues

The AIA Canada National Conference also organized three discussion sessions on the following topics: inclusion, navigating changes in the industry, and impacts of the vehicle fleet transformation.

One of three sessions, Creating an inclusive industry for women in the auto care sector, was led by Stacey Miller, vice president communications, Auto Care Association. During this discussion, attendees learned about the gender disparity in the industry and how companies can attract more women in the sector and keep employee retention rates high by creating a welcoming and inclusive workplace environment. 

“For women, a diverse workplace is important. Can they share experiences with others? If so, they are more likely to grow and blossom within their role. Having other women is inherently an easier way to make your employees more engaged and more involved, said Stacey Miller. “Diversity is not a target; it is a culture that we build. We need to make sure that work environments are accommodating to make sure that our industry is the best it can be.” 

A second session, Shift happens: Mastering change in Canada’s auto care sector, was presented by MANN+HUMMEL’s Vice President, Sales and Marketing Automotive Aftermarket, Daryl Benton. 

With the industry changing at a rapid pace, change is inevitable. Daryl Benton provided the audience with various insights on how to positively react to change in the industry and understanding the nitty-gritty about change dynamics through strategies, leadership principles, and real-world examples. 

“Change is not a threat; it is an opportunity. Change is going to happen, and we need to think how we will embrace it and view it as threats that are opportunities. These opportunities will allow you to adapt, innovate and work to ensure your business stays competitive.” said Daryl. 

The third session touched on market research and data. The impact of the evolving fleet on vehicles in operation and vehicle kilometres travelled, presented by Todd Campau, MAAP, ACP, aftermarket product lead, of S&P Global Mobility, showcased various insights and data on how the vehicle fleet is evolving, potential factors, and how these factors can impact businesses in the near and long-term future. 

“Electric vehicles are getting a lot of miles. They are below diesels, but electric vehicles (EVs) are doing better than traditional petrol from an annual mile travelled. However, we need to keep an eye on this to see if the trend maintains or changes over the coming years.” said Todd Campau.  

He also told the audience that “Younger vehicles on average are beginning to be exported. In 2019, vehicles were being exported at around nine years old, but now it is around six to seven years old. The cars get towards the end of life, leave the fleet in Canada, then to go the United States. This takes aftermarket work away from us; and so, if younger vehicles leave the fleet, it is something we need to keep in mind and take a closer look at what this means for our aftermarket businesses in the present and the future.”

A look at the future

The future of the automotive industry was also discussed at the AIA Canada National Conference. Future trends in car maintenance, but also the impact of artificial intelligence (AI) on sales, were at the heart of the conversations.

Founder and CEO of Retail Prophet, Doug Stephens, said: “AI gives us opportunities to capitalize on teachable moments and to make training more interactive, timely, and relevant. Companies that came down to a granular level about an individual are seeing significantly better results. AI can help us get down to the key words, ideas, and motivators to help drive better conversion and revenue.”

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