Commerce City, Colo.--Under current market conditions, it is becoming increasingly difficult for independent aftermarket warehouses to remain competitive, said Gene Edwards, former president of T-K Distributors, a two-step Motorcraft and Parts Plus warehouse, who was acquired by U.S. Oil last January.
That trend is leading to consolidation throughout the aftermarket, which isn't necessarily bad for repair shops, Edwards said.
T-K Distributors is one of four businesses, including AC Delco distributor Pam Oil, U.S. Tire & Exhaust, and Schierl Tire, to merge to form U.S. AutoForce, now a single division of U.S. Oil, which is based in Combine Locks, Wis. This increases the company's size to 32 locations, from Wisconsin to Idaho, Edwards said.
For repair shop owners in Colorado, this means access to a single supplier that carries ACDelco, Motorcraft, and Parts Plus brands, said Ray Fondacaro, business consultant for U.S. AutoForce. The breadth of product lines is appealing to fleets, independent shops, and dealerships, he said.
"We'll still approach the business like we always have," Fondacaro said. "It makes it all the better for the installer since there's more competition."
The first step of the acquisition involved shutting down Pam Oil's Denver warehouse and merging all its inventory and employees into T-K's Commerce City warehouse, Fondacaro said. Pam Oil's former satellite Colorado warehouses in Boulder and Fort Collins remain, now doing business as U.S. AutoForce.
"The addition of the ACDelco is the biggest advantage to our customers," Edwards said, who now serves as an area business manager for U.S. AutoForce, adding that the depth of resources that U.S. Oil brings to the equation will undoubtedly benefit the repair shops.
"U.S. Oil is in an expansion mode," Edwards said. "They wanted to expand into more hard parts. Their traditional segments were tire, oil, and exhaust." The acquisition of Pam Oil and T-K Distributors gives them access to underhood and undercar lines the U.S. AutoForce Commerce City warehouse now carries approximately $5 million in inventory, he said.
"In Denver we believe U.S. AutoForce is well positioned with the right product on our shelves to service the market and a strong delivery network with quick response to deliver products to our customers," said Bruce Senske, vice president of distribution for U.S. AutoForce.
