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
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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