Supply Chain: Getting Parts to Market Post Pandemic [THA 237]

Bruce Ronning, DR1V Group Vice President and General Manager, Americas Aftermarket  

Brian Norko, SVP of Commercial Business Operations, NGKs aftermarket business 

Malcolm Sissmore, Vice President, Sales, North America Independent Aftermarket, Delphi Product and Service Solutions

Paul McCarthy, AASA President. Paul has over 23 years of experience in the automotive industry. Prior to joining MEMA, Paul led the Automotive and Industrial Products Strategy Practice at PricewaterhouseCoopers (PwC). He consulted at dozens of automotive suppliers, eight of the top ten global automakers, and at private equity firms and financial institutions. His past leadership roles include heading PwC Germany’s Automotive Strategy advisory practice and leading global forecasting and analysis for a prominent vehicle forecast service, Autofacts. Paul has an MBA from Duke’s University’s Fuqua School of Business. Find Paul’s other episodes HERE.

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.

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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.

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