During his keynote address at the eighth annual Aftermarket eForum, Luckett discussed the Internet, along with relevant trends in the parts and service industry, including challenges that the aftermarket industry faces.

Online parts purchasing and data management 
Currently, 90 percent of all parts searches begin online or through an electronic parts catalogue, Luckett said.

That means that more and more customers are staring at a computer screen to make decisions and therefore need access to parts data that is updated, graphical, accurate, descriptive, and informative in order for customers to make an educated buying decision, he said.

"Increased reliance on automated business systems makes the state of our data more vital than ever before," Luckett said. "Yet, the investment in data cleanup and systems to manage the data continues to lag the marketing and promotional budgets of most companies."

That occurs, he said, because "data" continues to be a word that is disrespected and underinvested in the automotive aftermarket industry.

  
Businesses that invest in catalogue and product data systems see a return on investment (ROI) through increased sales, improved efficiency, and reduced returns, Luckett said.

"It is a process, not a project; it is a long-term solution," said Donna Snyder, vice president of marketing and advertising at East Penn Manufacturing, a lead-acid battery and accessory manufacturer.

Aftermarket distributors adapt to an evolving industry and a struggling economy
"The new generation wants things online, and we are working for that generation because they expect it," said Scott O'Toole, manager of product pricing and PIES compliance at Motor State Distributing in southwestern Michigan, during a discussion by wholesale distributors.

The panel members agreed that their investment in e-commerce and data-management systems has been a driving force in their success in today's market. Unfortunately, the sluggish economy has driven some warehouse distributors to unfortunately fix their problems by lowering prices to gain market share rather than fine-tuning their business and operating efficiently, said Jon Wyly, executive vice president of Arrow Speed Warehouse in Kansas City, Kan.

"This is setting precedence for rationalizing business -- something we in the specialty market have not typically done," Wyly said. "But I can tell you that as a business today, we are going to start looking at really low-margin customers and deciding if we really value that business."  

  
Vehicle technology and the effect on the aftermarket
An increase in sophisticated vehicle technology will also transform the current state of the parts and service industry from the manufacturer to the installer, Luckett said.

As original equipment improves, service intervals will increase, and high-priced technology-based components will grow.

Luckett concluded, therefore, that the industry is moving toward one of "increased inventories, slower-moving, expensive parts,"  and that rising gas prices have reduced driving miles for the first time in 25 years, thus creating even more time between service intervals.

"Accelerating change of OE vehicle technology will have a profound impact on aftermarket inventories," he said. "Supply chain improvements have to move from theory to reality if companies are going to thrive under these circumstances."

In 2012, Luckett said 15 million vehicles will have telematics installed. Those advancements will be felt down the supply chain to the installers, who will request more information as vehicle technology gets more complex.

Tony Zanders, owner of Heritage Auto Repair in Meridian, Idaho, said during a shop owner panel that complexities in the industry, like telematics, represent a new technology that shop owners have to take an active role in. "As leaders in the industry, we have to find ways to capitalize and make telematics a valuable technology."

Computerized, technological components in vehicles will change the qualifications sought after in an automotive technician, Zanders said. "A gap has to be bridged between the young and old technicians," he said, adding that technicians of the future will have to be able to handle the complexities of issues of telematics but also have the ability to take a manifold off and put it back on.