The aftermarket industry has become a content business as much as a parts supplier, reflecting a dramatic shift in how companies support customers and drive sales.
Paul McCarthy, president of MEMA Aftermarket Suppliers, told attendees of the Aftermarket Technology Conference in Springfield, Missouri that customer expectations have evolved. Suppliers now need to produce not only parts but also the data, images and videos customers demand to make purchasing decisions.
Content, he said, is now at the heart of competitiveness in the sector. He pointed to data, images and videos as vital to meeting modern customer demands.
“We must all now be content companies as much as Netflix or any other company,” McCarthy said. “Even more so, if you want to be able to sell anything these days, you better be a good content company.”
His presentation also described the sector’s technological evolution. “We are a technology industry,” he said, repeating a phrase he has emphasized in recent years.
He pointed to early reluctance in the field to embrace this reality. Now, both suppliers and customers view technical innovation as central to business.
On the topic of new vehicle technology, McCarthy said noted that the average repair order on an EV is 54 per cent higher than a combustion vehicle. He observed that while electric vehicles and other unfamiliar technologies once appeared as threats, they are now sources of growth.
“New technology almost always brings more opportunity for the aftermarket,” he observed.
Looking ahead, McCarthy stressed the need for ongoing adaptation. “We need to innovate. We need to return to innovation that even as we suppliers deal with and overcome pandemics, supply chain bullwhips, the tariff disruption that they need us to bring that innovation that drives aftermarket growth, that solves problems for our customers.”
McCarthy will take over as president of parent group MEMA, The Vehicle Suppliers Association, in the new year, succeeding the retiring Bill Long. Emily Poladian will move into McCarthy’s role.
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