Kevan Wooden, Chief Commercial Officer, LKQ Euro Car Parts: IAAF Blog – Fourth Edition

Date: Tuesday 01 November 2022

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Getting match-fit for a recession: three areas of focus for the aftermarket

The news, if you can manage to keep up with it, has been consistently depressing this year. In recent weeks, the UK economy has continued to take a downward turn.

Independent garages and bodyshops are leaning into a recession at a time when they are already grappling with the impact of soaring energy costs. At the time of writing, respite from government support is only due to last until the spring.

After the current MOT wave subsides, it’s likely that discretionary spending by vehicle owners will start to dry-up.

Faced with such a challenging climate, the independent aftermarket should focus on three areas to ensure their businesses can continue to trade well in the downturn. And there are even opportunities for growth. 

First up is customer experience - right from when they first engage with your business to when they work through the workshop door.

The opportunity for independent garages and bodyshops in the current climate is to entice loyal dealership customers by offering a cheaper price that also looks and feels like a good value, professional alternative.

Yes, your workshop or bodyshop is likely to be more competitive already. But don’t expect that to be enough to convince everyone that they can shop at confidence at your business.

A professional reception, a clean workshop environment and customer waiting space will all make a big impact on the impression given to customers reluctant to give up the trappings of the dealerships’ more bells and whistles approach.

Connected to this need to inspire confidence, the next area of focus should be your brand.

While it might seem churlish to flag the need to have a modern, functional online presence it is simply the minimum expectation of most consumers. And with more people on the lookout for cheaper alternatives and considering a switch to the independent aftermarket, your online storefront needs to be on point – 81% of people now conduct Google searches before buying and 93% read online reviews.

One thing that should stand out online and in your premises is your training certifications. If you and your team are qualified to work on ADAS, hybrid or EV vehicles then shout about it. Frame your certificates and include logos and details online.

Showing that you invest in professional learning and development is a positive statement for any potential customer.

Which leads me to my third and final recommendation: ensuring you have the right equipment to repair, service and access more modern vehicles.

The slowdown in new car sales seen over the past three years means people are holding onto more modern models for longer, presenting a big opportunity for the independent aftermarket.

This means more ADAS equipped vehicles – now a legal standard on all new cars – as well as hybrids and EV.

I won’t dwell on the race to get EV ready here, many garages and bodyshops will feel – rightly or wrongly – that they have plenty of time left.

But having the tools and capabilities to work on ADAS-equipped vehicles is already non-negotiable. It remains the easiest way for dealerships to keep customers coming back by stressing that only they have the tools to do the job, not the local garage.

It might feel unpalatable to invest in new kit and training now when margins are under such enormous pressure. But ADAS is not just an opportunity to seize as motorists question their use of dealerships - it’s a near-term threat to the independent aftermarket’s ability to operate.

I’m pleased to say that there’s lots of help available on all three areas, from free advice to specialist products and services from the IAAF and retailers like us.

The economic outlook right now is gloomy. But even through some modest steps, garages and workshops can ensure they’re match-fit to keeping winning work – and maybe even poach some new customers in the process.

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