May_2021 - 8

Progressing our
profitability
Positive industry trends have shops
looking forward to an uptick in 2021.

BRITTANY VINCENT
MANAGING EDITOR

EMILY MARKHAM
ASSISTANT EDITOR

by Krista McNamara, Editorial Director
KMcNamara@EndeavorB2B.com

he past 12-plus months
have highlighted the automotive aftermarket as an
essential industry and one very
ready to transcend the " new normal " to simply return to the way
things were.
There are some challenges in trying to
get the pendulum swinging back in the right
direction. The continued lapse in rush hour
and the daily commute is not great news for
the aftermarket. Miles driven saw a more
than 13 percent decrease last year, leaving
shops bracing for the worst. Many companies rolled out long-term f lexible working
situations that allowed the daily grind to
happen from home. In many industry segments, this culture change is taking root
going forward, with more than 20 percent
of companies surveyed in a recent Upwork
poll stating that a remote working structure in some form will continue at least
through 2025.
Despite these challenges, miles driven are slowly ticking upward, closer to
pre-pandemic levels.
And as multiple aftermarket associations
have reported in recent months, several
trends are impacting the demand for vehicle
service and repairs. Personal vehicle ownership is on the rise, with The New York Times
even calling out the pandemic's impact on
automobiles, dubbing it the " ultimate P.P.E. "
and instrumental in fostering a " society
on wheels. "
There's been a large shift toward purchasing trucks and crossovers, which is good for

PTEN

MAY 2021

VehicleServicePros.com

aftermarket dollar growth, as maintenance
and repair is typically more expensive for
these types of vehicles.
Used car sales grew in 2020, and the
average age of vehicles on the road - currently 11.9 years - is expected to climb even
higher in 2021, a great trend for U.S. shops.
People are less comfortable using mass
transit and ride-hailing services, with Uber
and Lyft each seeing sales declines in 2020
of more than 70 percent when compared to
2019 levels. Urban populations, which typically rely on less vehicle ownership and more
public transportation, are continuing their
mass exodus into the suburbs, where having
a vehicle is often a very important part of
navigating daily life.
Months of quarantining, curfew, and
stay-at-home orders have exhausted the
patience of even the most skilled homebody. Americans are venturing out - taking road trips, renting RVs for family vacations, and putting pedal to the metal to reach
any destination other than the four walls of
their home.
Not all motoring trends and behaviors
will go back to what they once were, but
our readers tell us that profit margins and
revenue are returning to - and beyond -
levels seen in early 2020. As reported in last
month's Aftermarket Profile, more than half
of our PTEN shop owners surveyed anticipate higher overall revenue in 2021 when
compared to last year.
So maybe this is, in fact, the start of a
" new " normal - one that brings more stable
success for all.

KAYLA OSCHMANN
ASSISTANT EDITOR

CHRISTOPHER GROFF
CONTRIBUTING EDITOR

SCOTT BROWN
TECHNICAL EDITOR

PTEN EDITORIAL ADVISORY BOARD
TECHNICIANS
JOHN HARRIS,
Brooks-Huff Goodyear, Timonium MD
ERIC MOORE,
DeMary Trucks, Columbus, OH
LOU FORT,
K.A.R.S. Inc., Huntingburg, IN
SHOP OWNERS
PHIL FOURNIER,
Phil's Auto Clinic, Hemet, CA
JD GOAD,
Goad's Body Shop, Lexington, VA
EDWIN HAZZARD,
Southeast Mobile Tech, Goose Creek, SC
BARRY HOYLAND,
VSSCA, Camarillo, CA
PETE RUDLOFF,
Pete's Garage Inc., Newark, DE
EQUIPMENT MANUFACTURERS
CHAD SCHLEY,
Schley Products/SP Tools
JIM O'HARA,
Clore Automotive

http://www.VehicleServicePros.com

May_2021

Table of Contents for the Digital Edition of May_2021