Transcript Slide 1
Tom Kotenko General Manager Snap-on Business Solutions # Shops # Bays/Shop Independent Repair Shops Fleet Maintenance Dealerships ~13,000 ~50,000 ~3,000 6.0 5.5 15.5 Average Mechanic Age = 48 to 55 • Dealerships & large fleets continue to gain market share--> • This trend will continue with increasing vertical integration in the OE market and with the OEM’s effort to increase proprietary technology integration • Owner and fleet operators at one time dominated truck service industry, however, outsourced service is forecast to increase: • Increasing complexity of trucks: Increased use of electronic features increases complexity of truck repair. This will drive truck owners towards Large Fleet and OE service versus conducting in-house service. • Consistent increase in need for tools, equipment and labor costs will raise maintenance costs. • The number of smaller (1 to 5) truck fleets is forecast to increase at a faster rate than the larger (25 or more) fleets. These smaller fleets do not have on-site repair and maintenance facilities. Outsourced repair forecast Truck manufacturers will transition from a brand image centered on the vehicle to one that addresses the larger transportation solution - Navigation / Routing - Full Service Contracts Today vehicles are sold with non-integrated add-ons By 2020, the value will be in integrated solutions “The differentiation won’t be on products, but on services” –European Truck OEM Integrated Telematics Bundled Services Comprehensive Serviceability Advanced Vehicles © 2009 IBM Corporation • Truck manufacturers must aggressively expand their thinking about partnerships beyond traditional industry boundaries…. • The dilemma for truck manufacturers – Brand of the vehicle is being commoditized, truck manufacturers will have to evolve their definition of brand and develop solutions – Telematics is the important investment for the future – Hybrid truck development is critical for the future, particularly given increased urbanization globally • The winners by 2020 will have significantly transformed their workforce • EOBR – Electronic On-Board Recorders become standard on all vehicles • Idling regulations • Canada adopts Top Speed limit of 65MPH Secluded Shops of Dirt and Darkness Shops that time forgot. Isolated and often ignored. Managing Technology – The Fear of the Future Connecting the Shops – Information Flow Managing Technology– Fear of the Future Difficult to obtain the CORRECT Tools Electronics and computerization are AFFECTING the future. Computers as tools. • Diagnostic Tools – PC based vs Scan tools • 13 and growing different applications – 13 different User Interfaces – Engines, Transmissions, Brakes…etc. • Different Scan tool products offering various functionality – Service Information – OEM’s supply to large fleet customers – each having a different approach… – Aftermarket Service Information providers… • Large Fleets and Dealers – – Internet Access • Many fleet shops remain without…including the nation’s largest. • Parts accessibility – Inventory • Cross-referencing – Accessible “low-use” aftermarket parts – working with local dealer to obtain correct OEM part. The Federal Government The Right to Repair – For Commercial Vehicle Availability of manufacturer-specific scan tools. • Manufacturers shall make available for sale their own manufacturer-specific diagnostic tools at a fair and reasonable cost. • These tools shall also be made available in a timely fashion either through the manufacturer Web site or through a manufacturer-designated intermediary. • Manufacturers who develop different versions of one or more of their diagnostic tools that are used in whole or in part for emission-related diagnosis and repair shall insure that all emission-related diagnosis and repair information is available for sale to the aftermarket at a fair and reasonable cost. OEM product has been made available – Differentiated version of OEM product is available to the aftermarket • Scan tool products • Service Information • Parts accessibility – OEM Cross-reference products • Coping and adapting to significant change – Smaller shops becoming larger by networking through an acquisition or working with “buying groups” • Fleet Pride – FleetPride complete acquisition of Midway Truck Parts (5/3/11) • HD America • VIPAR Benefits: Increased purchasing power Access to some OEM information Thank You