**London**: Leaders in the automotive aftermarket discuss key challenges and opportunities for 2025, emphasizing collaboration, technological adaptation, and inventory management to navigate economic pressures, rising interest rates, and the transition to electric vehicles.
Leaders in the automotive aftermarket supply and distribution sector have provided insights into expected developments over the next year, highlighting key challenges and opportunities. In an effort to inform stakeholders about the industry’s trajectory, Jobber News sought opinions from various experts, including Nick Brunet, the President of Best Buy Distributors Limited.
Brunet emphasised the importance of collaboration across the entire supply chain, stating that effective cooperation between manufacturers and jobbers is crucial for aligning demand forecasting and ensuring product availability. He noted that the previous year had been characterised by significant economic challenges, including persistent currency inflation and supply chain volatility, which have placed pressure on margins and necessitated careful inventory management.
In response to these pressures, Brunet identified the need for enhanced operational efficiency, particularly in light of rising interest rates earlier in 2024, which constrained capital investment. Despite these economic hurdles, he acknowledged that consumer demand for automotive aftermarket services remained resilient, largely due to higher rates of vehicle repairs.
Looking towards 2025, Brunet anticipates that the economic challenges currently faced by the industry will continue, with additional complexities arising from the accelerating transition towards electric vehicles (EVs) and advancements in digital technologies. He indicated that distributors must be prepared to navigate these shifts while addressing potential labour shortages and the possibility of consolidation within the industry.
Key strategies proposed by Brunet for successfully managing these expected changes include the adoption of data-driven inventory management techniques aimed at reducing carrying costs and mitigating supply chain disruptions. He highlighted the necessity of investing in employee training and retention programmes to combat labour shortages.
Furthermore, Brunet mentioned that suppliers should focus on developing partnerships with distributors who are committed to innovation and adaptability, especially given the increasing prevalence of electric vehicles. He advised that leveraging digital platforms to streamline operations and enhance customer engagement should be prioritised.
In terms of product offerings, Brunet suggested that jobbers, distributors, and suppliers should diversify their portfolios, particularly focusing on parts and tools suited for EVs and Advanced Driver Assistance Systems (ADAS). He remarked that cultivating strong relationships within the supply chain is essential for maintaining agility in the face of evolving market demands.
To conclude, Brunet reiterated the significance of adopting technology-driven solutions, including e-commerce platforms and predictive analytics, to improve operational efficiency and customer satisfaction. He also recommended fostering a culture of continuous learning and innovation within teams, which could further position businesses to thrive in the changing landscape of the automotive aftermarket. The complete feature encompassing these insights will be published in the January 2025 issue of the magazine.
Source: Noah Wire Services
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