Toronto, Ontario — Oct. 16, 2019 — In the face of the upcoming federal election, AIA Canada wants to remind the nation’s federal government parties that our automotive aftermarket industry is an economic driver—and the industry is facing disruptions.
As the nation approaches the federal election on Monday, Oct. 21, AIA Canada has released a letter to the federal government parties outlining some of the biggest challenges faced by aftermarket auto part manufacturers, distributors and installers. It wants to remind the federal government that the Canadian automotive aftermarket industry is a massive economic driver, contributing $21.6 billion to the economy and employing 389,000 Canadians.
“Aftermarket businesses across Canada may not be able to participate in the digitalization of the automotive industry,” stated AIA Canada in its letter. “This is not because they are not competitive or unable to ‘go digital’, but because vehicle manufacturers have positioned themselves as gatekeepers of data generated by the connected vehicle.”
AIA Canada’s main concerns lay in accessing vehicle data and resources. Currently, the ability to communicate with vehicles is limited to automakers, which equip the vehicles with bi-directional communication technology, making them the owner of the communication platform. AIA Canada desires a standard of access to data across the entire automotive supply chain and its communication platforms to ensure that shops can communicate data required for repairs, as well as ensuring that stakeholders can take advantage of opportunities in automotive digital-driven services.
“The automotive aftermarket is downstream to vehicle manufacturing; the introduction of change upstream, means change downstream,” AIA Canada explained. “As vehicles are outfitted with digital communication platforms that support the transmission of vehicle data out of the vehicle and transmission of data into the vehicle, the entire automotive supply chain must-have instant and direct access to these communication platforms.”
AIA Canada is also concerned about education and workforce development around advancing tech, saying that the skills and knowledge required for the industry are changing as the auto industry transitions from hardware-defined vehicles to software-powered vehicles. Conversely, technical skills will be needed on the shop floor to care for vehicles equipped with advanced technology, such as ADAS.
Other workforce disruptions include a potential technician shortage, which AIA has said is supported by increasing retirement rates and the classic challenge of attracting individuals to the skilled trades. It suggests things like awareness campaigns to update the perceptions about working in automotive skilled trades, deploying advanced vehicle technology upskilling initiatives, and considering the aftermarket industry as a priority beneficiary.
