Professional Tool & Equipment News and Professional Distributor Editor Elliot Maras shares his insights on the tool and equipment industry.
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Consumers driving less? Research isn’t conclusive and aftermarket prospects remain strong
By Elliot Maras - Wednesday May 15, 2013
Americans may be driving less, as noted by a recent report in today’s PTEN newsletter, but that doesn’t mean the demand for aftermarket services won’t continue its upward trend. The U.S. Public Interest Research Group (PIRG) released a report yesterday that has garnered a lot of attention in the automotive industry since it highlights several trends contributing to a decline in driving. ( Read the report .) The most important trend being that the millennial generation drives less than older consumers. The purpose of this PIRG report is to encourage the government to stop spending aggressively on new construction while the existing infrastructure crumbles. PIRG, an organization that claims to support the interest of the consumer... -
San Mateo limousine fire a sober reminder for the auto industry
By Elliot Maras - Tuesday May 7, 2013
The invigorating spring weather has finally arrived. But unfortunately, the limousine fire that killed five women this past weekend on the San Mateo bridge ruined it, especially for those of us who concern ourselves with auto safety on a daily basis. At this writing, the California Highway Patrol was still investigating the limousine fire. Because the accident remains under investigation, not a lot can be assumed about its cause. People are naturally anxious to speculate what caused the accident and what could have been done to save the victims once the limousine caught fire; news stories about the accident on the Internet have drawn a lot of comments from readers. This tragedy serves as an important reminder of the role the... -
Carfax lawsuit proves service reports’ rising role in auto aftermarket
By Elliot Maras - Monday April 29, 2013
Last week’s announcement that more than 120 auto dealerships are suing Carfax for antitrust violations points to the important role that vehicle service reports are playing in the automotive aftermarket. The lawsuit claims that Carfax, the leading provider of vehicle service reports, has excluded competition and results in higher used car prices for dealers who furnish the reports to customers, and for consumers who purchase the reports on their own. The dealers are seeking $50 million in damages. It will be interesting to see how the court rules in this case. But in the meantime, no one can question that vehicle service reports are playing a bigger role in the automotive aftermarket, and independent repair shops have to understand that... -
J.C. Penney’s failed gamble with Apple CEO; a lesson for the automotive aftermarket?
By Elliot Maras - Tuesday April 16, 2013
All of us are living in challenging times, and if you feel frustrated by your inability to master the diverse skills needed in what was once a fairly cut and dried business like automotive repair, take solace in knowing you are not alone. Last week, J.C. Penney dismissed its CEO, Ron Johnson, whom it lured away from Apple in 2011 with the hope that he could do for the general merchandise giant what he did for the specialty retailer. If you haven’t been following this story, the long and short of it is that a management superstar was clearly unable his replicate success in another marketplace. In fairness to J.C. Penney, board members at the time noted that Apple’s model wouldn't translate completely to J.C. Penney's stores, but they... -
Car connectivity, the next big thing, challenges the aftermarket
By Elliot Maras - Friday April 5, 2013
Global Information Inc., a research firm, recently released a report claiming that the connected car will be the "next big thing" for the automotive industry. Future generations of cars and devices will rely more on cloud-based, back-end systems for content, information, and services, turning the car as we know it into a huge data repository, opening new avenues of business opportunities for service industries and content providers. (To access this report, click here .) The research notes that network carriers like AT&T have identified the automotive market as the next growth area, given the penetration of smart phones. AT&T recently signed an agreement to provide connectivity across most of the 2015 fleets for Chevrolet, Buick, GMC...
