Supply Chain: Getting Parts to Market Post Pandemic [THA 237]
Key Talking Points
- The biggest disruption in the supply chain since World War II- demand coming out of the pandemic, the reason for inflation. Not a singular problem, it’s the entire system being overwhelmed. COVID restrictions with overseas ports.
- Shipping issues and delays- ports backed up, just being able to get space on a truck or shipping containers. Shipping container fee for the boat is 20K. Starting to use more airfreight.
- Truck issues- access and drivers
- Raw material shortage- chemicals, oil, microchips, steel etc.
- Labor issues- working in plants and warehouses. Stimulus is keeping a lot of people at home. Labor inflation
- 7,000 workshops in the USA- busy as they want to be as they manage their capacity.
- 1 million jobs available in industry plus retirement is a double edge sword.
- Nearshoring is growing- less supply risk but labor issue is still prevalent
- Quality issues- competitors with the same part available are made in low-cost countries. You need customer satisfaction, the brands that you long trust for quality are still brands to trust. Top shops want the best quality parts.
- Manufacturer website- Knowyourparts.com
- How long will it last? How long will we see this level of demand for repair shops? This year that will have over 11% growth over last year. Next year over 5% growth. 2023 and 2024 growth slow of course, but is still above the pre-pandemic trend.
- Electrification- more opportunity than threat for the aftermarket, be ahead of the curve.
- A special thanks to Bruce Ronning, Brian Norko, Malcolm Sissmore and Paul McCarthy for their contribution to the aftermarket.
- Books Page HERE
- Listen to all Remarkable Results Radio, For The Record and Town Hall Academy episodes.
Facebook Twitter LinkedIn Instagram Youtube Email
Join the Ecosystem – Subscribe to the INSIDER NEWSLETTER HERE.
This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at getshopware.com
About the author, Carm Capriotto, AAP
Carm is the founder and host of the Remarkable Results Radio Podcast and the pioneer of automotive aftermarket podcasts. Carm calls on his years of experience in the aftermarket to bring engaging stories from his guests.
Listen to raw, unfiltered, honest, and sincere stories that include insights, trends, best practices, and expertise. Each interview brings an opportunity to learn one new thing through the stories of personal achievement. Many podcast guests tell their story of transformation from working in their business to working on it.
As host of over 1,000 episodes, Carm uses his enthusiasm and passion for the aftermarket especially the service sector to take his listeners on a journey showcasing successful service professionals’ paths to Remarkable Results. He also enjoys interviews with aftermarket industry thought leaders who bring their industry perspectives to his listener.
Follow the podcast on your favorite podcast listening app and always listen to learn just one thing!