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The Group’s Larry Pavey: ‘Achievement Requires Collaboration’


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In our cover story for

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, we asked distribution leaders to reflect on the successes and challenges of 2022 and share some of their insights for the industry in 2023.

Here’s our Q&A with Larry Pavey, CEO of the Automotive Parts Services Group (The Group).

AMN/CM: What are your thoughts about the business environment for the automotive aftermarket in 2023?

LP: We believe that most market drivers will be very positive for the aftermarket in 2023 and expect that the overall business environment will also be very positive. Fuel prices should remain stable, allowing miles traveled to continue to grow. We see the number of vehicles on the road between six and 12 years old at the highest level in years. The overall fleet age is the highest in history, providing tremendous repair opportunities as new-car sales continue to lag and used-car values remain high. More vehicles, driving more miles in their prime repair and maintenance age, with fewer warranties, will provide a strong market environment in the coming year.

AMN/CM: Has your business been impacted by labor and supply chain issues this past year? If so, how did you address this?

LP: Supply chain issues continued to be a challenge in the past year, although we saw improvement as the year went on. We worked closely with our supplier partners to provide data and information and alter processes where possible. We recognize that to achieve improvement requires collaboration, and our focus was to find ways together to support strong sales increases while dealing with supply disruptions. We are thankful for our supplier partners and the help and support they provided, and we look forward to a return to more “normal” challenges in the future.

AMN/CM: How is the ongoing Right to Repair issue impacting your business?

LP: As the industry continues to go through transition, the need for vehicle repair and outstanding customer service not only affects our industry but impacts most businesses and individuals as well. Restrictions on where and who can repair vehicles will impair safety and air quality and cause consumers to postpone or avoid needed maintenance and repair. Higher costs for transportation impact budgets, reducing funds available for food, shelter, education and other basic needs. Restricting the Right to Repair will also eliminate jobs and lessen the ability for others to work. The Right to Repair issue is about so much more than the impact on our organization and other businesses in our industry. It is about the effects on the mobility of our entire society and all of those who provide or rely on transportation for their livelihoods.

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      LP: Our industry has an identity crisis. Today’s vehicles have more cool technology than any other product I can think of, and our industry should be a magnet for young people who love tech. Every aftermarket company, large and small, should alter their communication strategy to promote the technical aspects and potential that the aftermarket offers. As an industry, we need to focus on rebranding, from maintenance and repair to diagnostics and calibration, and share the opportunities we have for the best and the brightest. To communicate this effectively, we need to work together and embrace the future, where tech companies like Google, Apple and Amazon will be mobility companies offering career opportunities in many areas. Positioning the vehicle as the largest and most important technology in everyone’s life will be key.
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      LP: The greatest future threat to the aftermarket is having the competency to repair vehicles and satisfy customers. The two biggest obstacles are adequate information and technician competency, and they are interrelated. Winning the battle for data access is key to be able to repair vehicles regardless of technician proficiency. Without access to repair data, the aftermarket will not be able to meet consumers’ needs for parts and repair, especially as the electrification and complexity of vehicles increases. The shortage of technicians and changes in required competencies will be challenging, even if all the data for diagnostic and repair procedures is available. Evolving technology also will impact the ability of shops to afford the variety of equipment required to perform repairs. Fortunately, we are seeing some shared services in remote diagnostics, but there are still tremendous challenges to deliver the outstanding service that consumers are accustomed to.
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