Hanvey: AAPEX to focus on attracting auto shop owners

LAS VEGAS — AAPEX historically has attracted suppliers and distributors of aftermarket vehicle parts and equipment, but now it wants to attract more repair shop owners to the annual exhibition.

"We're going to continue to focus on bringing shops, expand our training, expand Joe's Garage and make it more appealing to the shop owner," Bill Hanvey, CEO and president of the Auto Care Association (ACA), said. ACA is an AAPEX co-sponsor.

"We've heard repeatedly from the exhibitors that they can meet with their buyers virtually just about anytime, but who they do want to talk to are the shops and build their brand with the shop owners and conduct training.

"So we're going to continue to focus on bringing more shop owners to the show, expand our content on the education side. We have The Alliance (Aftermarket Auto Parts Alliance Inc.) group that are going to bring 5,000 shop owners next year and we're going to continue to work with the program groups to see if they will be able to alternate years in terms of bringing their shop owners and just, again, having that focus to bring the shop owner, create that relationship with the brand and the shop owner. I think that's really important."

In an interview with Tire Business, Mr. Hanvey, who has been at the ACA helm for six years, discussed how trade associations, and their conventions, are still relevant — but they need to adapt to the changing needs of aftermarket businesses.

It was just two years ago that the ACA proved its relevance by helping to lobby federal and state governments to declare automotive aftermarket businesses as "essential" and excluded from the mandatory shutdowns of public areas and businesses during the height of the COVID-19 pandemic in the spring of 2020, he said.

This article appears in the Nov. 22 edition of Tire Business.

Then AAPEX organizers canceled the annual in-person convention in November 2020 and hosted their first virtual event that included training webinars.

In early November, AAPEX 2021 welcomed back attendees and exhibitors in person, albeit in reduced numbers, to the Venetian Expo (formerly Sands Expo) in Las Vegas.

The expo, which historically attracted about 2,500 exhibiting companies and about 48,000 targeted buyers, this year drew over 1,000 exhibitors and about 80% of the usual number of registered buyers, according to Mr. Hanvey.

But he said he was still pleased with the turnout.

"The level of the buyer this year is a more senior level, which is great for the exhibitors because they get to talk to the decision-makers. So that's something that is different. And obviously they don't have to compete with the international exhibitors and it really gives the domestic exhibitors an opportunity to have that good, meaningful, one-on-one discussion with their senior buyers. It's a higher-level show, if you will, this year. It's just great."

Two years ago, AAPEX announced plans to introduce Repair Shop HQ, an exhibit area dedicated to shop tools and equipment, along with product demonstrations. The plan was to move international exhibitors from the first floor of the Venetian exhibit hall to the adjacent, newly built Caesar's Forum, house the Repair Shop HQ on the first floor and keep all other exhibitors on the second floor.

This year the Caesar's Forum sat vacant as most international exhibitors, particularly from Asia, were unable to travel under pandemic restrictions.

However, Repair Shop HQ, including the new "Joe's Garage," was able to debut this year. (See related story on page 8.)

"Conventions are still relevant but we have to be cognizant of the change that has occurred within the convention industry," Mr. Hanvey said.

"So that's why the focus of making this a more comprehensive show in terms of the training that I mentioned and bringing more education to the business owners. Obviously the face-to-face is great. This is a selling show but just expanding our offering to make it a more diverse group that we bring here to the show.

"The shop owners are saying 'Hey, we want to learn about ADAS. We want to learn about embedded software.' So we're taking what they have to say and developing these training programs. We all know that with the shop, it's difficult to get away, so we have to make it a value for them to be here and turn over their shops for a couple of days and come out here and make the trip. And you can't do it just to walk the halls. You have to be able to offer them something that is going to bring them here."

AAPEX offered a mix of 2-1/2-hour training classes and one-hour seminars and panel discussions on various topics, including the technician shortage, industry trends and shop management issues.

Has the strategy been successful in attracting shop owners?

"Thus far, not necessarily," Mr Hanvey admitted. "It's going to take an industry message to do that. We, as an industry, have to recognize how important the shop owner is to this entire value chain. Right now it's primarily the supplier and distributor. But we represent the entire supply chain. So what's missing is the shops. So we really need to focus on that."

The ACA recently created a group for program shop members, such as AutoValue, Bumper to Bumper, Pronto and Federated member dealers, which all became ACA members.

"We have very distinct communications that go out to those shops, encouraging them to participate in advocacy and educate them in the importance of Right to Repair, offering them programs in terms of PPP (Payroll Protection Program) availability during the pandemic. It was a great way for us to have a good relationship with the shops, to provide benefits to the shops and also educate them on how important it is for them to be engaged in the industry."

The ACA is focusing on attracting large program chains for now, he said, with smaller independent shops on the radar down the road.

"Right now we're just focusing on what we can focus on — one step at a time. To be honest with you, the shops don't really have a collective association that they can feel at home with. That's something that the Auto Care Association is really taking on and taking very seriously about the importance of having their representation within our membership."

"I think during the pandemic it was a wake-up call for the entire industry about how important associations are," Mr. Hanvey said.

"We were instrumental in having our industry declared essential. We worked hard at the state and at the federal level to have our industry declared essential. And as a result of our advocacy efforts, our industry was able to keep working and provide services for those other essential workers to be able to perform their jobs. … I think everybody has taken a step back and said, 'Wow, these folks are really important.'"

But Mr. Hanvey said it is "critical" that members step up their grass-roots efforts to promote or protest legislation impacting their businesses.

"We have to have a louder voice in terms of making legislators aware of the size and the scope of our industry. We provide jobs, we pay taxes, we employ 4 million people. That's a powerful statement. We are a $400 billion industry. It's a very powerful statement."

He said the ACA can facilitate meetings between members and their congresspeople.

"We have a program through our government-affairs team where we literally do all the work. We reach out to the congressional office, we set up the meeting, we give you best advice in terms of how to do the meeting. In many cases we'll attend the meeting. All the congresspeople that participate want to learn about their businesses in their district. Everyone likes to talk about their business, well why not talk about your business to your congressperson?"

He said the number of members taking the ACA up on its offer has grown "exponentially over the last two years."

"What's happening is that technology and advocacy are beginning to blend. So the more technological the vehicle becomes, the more regulatory issues we face, the more legislative issues we face. So that blend of technology and advocacy is becoming more important," Mr. Hanvey said.

"We have 4 million people that work in our industry. There's 900,000 technicians and they are the lifeblood of the industry. How do we engage them? So we are very focused on that. We've incorporated that into our strategic plan. It's one step at a time. So we started with the naturals, the program group shops, and then expand upon that."

Likewise, changing trends and technologies have impacted how associations serve their membership.

"We have to ensure that our industry is prepared for (new technology) to be able to educate our industry about what's coming down the road," he said, noting the ACA co-sponsored new reports on electric vehicles and aftermarket ecommerce trends.

The aftermarket report predicts continued industry growth through 2040.

"Even with all the hype you hear about EVs, we're really in for a challenging time and the industry has never seen anything like this. And it's really between the pandemic and

The ACA represents about 3,000 members, excluding the program shops, Mr. Hanvey said, a number that has remained rather stable.

"For us it's not necessarily the count but the engagement of the members that are part of the Auto Care Association. But secondly, for those folks who aren't members, they are benefiting from our work. So Right to Repair (legislation), we passed, regardless of whether you are a member or not. We trying to actively encourage those folks that aren't members and say 'It's your responsibility to support the association that is supporting you.'"

He said the association is doing outreach and encouraging engagement from members, including creating subgroups for members to interact with colleagues, such as Women in Auto Care, Young Auto Care Network Group (YANG) and a technology committee.

Mr. Hanvey said the association is also focusing on engaging its current member base, the parts manufacturers and distributors and their employees.

"Everyone's voice is critical right now. So engagement is another element of our strategic plan that we are going to be really focusing on. We've implemented the new CRM (customer relationship management) program so we can be more specific in terms of our communications. The data that we provide back to the industry — we're continually improving upon that to provide data to our members so they can make good business decisions. So that's a big focus as well."

The monthly industry data reports include a demand index which shows a base line of product category performance, he said, "so (shops) can measure their performance against how the industry is doing to see where there may be gaps in their product portfolio or services they provide to make better business decisions.

"So if they see a continual decline, for example, in air conditioning, well then they can start planning and say, 'Well, this category is beginning to taper off and sensors are going through the roof. So now I've got to get my staff better trained on sensors.' They can accurately judge what is coming down the pike in terms of product category growth."

The biggest challenge facing repair shops is vehicle technology, according to Mr. Hanvey.

Shops have to charge customers more for a vehicle diagnostic test to cover the cost of the diagnostic equipment, which can be challenging when dealing with a price-conscious consumer.

"You don't go to doctor not to be charged for a diagnosis. The shops have to take on that type of mentality as well," he said.

"The technology and equipment challenges that the tire dealers face right now is just incredible."

He said he has seen some otherwise competing shops collaborate by sharing equipment and services as a way to cut costs.

"One shop may own a sophisticated alignment machine. Another shop may own a sophisticated diagnostic machine. So I see a lot more collaboration between the independents with separate investments in their bays and be able to share that with other shops within their geographic location," he said, adding, "The last thing you want to tell a consumer is 'Well, you've got to take that to the (car) dealer.'

"The shop owners and the tire dealers that are most technologically savvy are going to weather this and they're not going to only weather it, they're going to do significantly well going forward."

Another challenge for shops is the shortage of qualified vehicle technicians to fill job vacancies.

"The United States has got to focus its efforts on apprenticeship programs," Mr. Hanvey said.

"They have to. Europe does it extremely well. We have to take pride in our industry in terms of the technicians being basically electrical engineers. The U.S. government has to take its focus off the traditional four-year college education and provide the opportunities for training for young men and women that don't want to get a liberal arts degree or a bachelors degree. We have to. And we're continually lobbying for that."

He noted that shops, and all businesses, have to be more flexible when dealing with employees' schedules and benefits, as well as provide opportunities for career growth.

During the pandemic, many people reevaluated what motivates them and some have changed careers as a result, he said.

Mr. Hanvey also urged the industry to create a more diverse workforce.

"Why are we not focusing our efforts on bringing in people of color into our industry and other minorities that we can provide a great living for? Our industry needs to be more representative of the population and I think we have to fish in different ponds to be able to provide the labor that is necessary to keep our industry going.

"So we have to think differently and we have to appeal to different people and make our industry much more diverse in terms of our offerings."