Business 19 www.aftermarketonline.net NOVEMBER 2024 A major new survey, Modernizing the Aftermarket, has highlighted the pressing challenges service organisations face as they navigate a complex and rapidly evolving industry landscape. Over a third (36%) said they believed there are not enough technicians/ engineers looking to work within the industry, further compounding issues around the adoption of newer technologies. Aftermarket service software firm Syncron interviewed 600 service and supply chain decision makers, CIOs and CFOs working within service organisations across several European countries including 100 from the UK and Ireland, the Nordics and North America. The survey was conducted last May in partnership with Field Service Associates, with respondents from organisations with a global annual revenue of more than £190 million. The findings were published in September. A third of service organisations said they still relied on manual processes to manage spare parts inventory. Sustainability And nearly all (99%) reported challenges when adopting new technologies, including concerns about data security (41%) and difficulties identifying the right solutions (39%). Sustainability is also a major priority for aftermarket operations, with 95% of respondents indicating plans to transition to a circular economy model within the next 12-24 months, the survey indicated. However, while the drive towards a circular economy is evident, about three quarters (76%) of respondents believed significant improvements were needed in how their organisation tracks circulatory performance metrics and measures the carbon footprint of their supply chain. Sean O’Neill, chief product and technology officer at Syncron said: “As the aftermarket becomes an increasingly powerful commercial engine, those who are prepared to invest in innovative business models, technology, and sustainable practices will be best positioned to lead. “These findings provide valuable insights for organisations looking to stay ahead in a competitive landscape by embracing a data-driven and customerfocused approach.” scheme being rolled out across Europe”. Other issues covered included the need for tax cuts on training and other business investment, to help independent technicians qualify to work on ADASenabled vehicles and hybrids and EVs. Secondary market And more widely, a national automotive employment scheme was highlighted as a critical need — similar to those that have been rolled out across the hospitality sector in recent years. Meanwhile, the document also identified the lack of a secondary market for the refit and refurbishment of EV batteries. Industry leaders said this had the potential to undermine the environmental gains made by the shift away from ICE, and to limit the affordability and accessibility of EVs — with the introduction of a regulatory framework to govern collaboration between the aftermarket and vehicle manufacturers positioned as key to the solution. Fiona Carmichael, head of automotive and mobility at Citypress, praised the initiative to bring together leading voices from the sector to campaign for change. “Many businesses in the UK aftermarket are SMEs, often located away from the more visible main road locations of the main dealers, and to policymakers they are literally out of sight and out of mind,” she said. “But if the UK is to meet its climate obligations, if our roads are to remain some of the world’s safest and if our consumers are to retain a choice for affordable repair and maintenance services, it’s time for the government to recognise the value and contribution that the UK aftermarket provides.” Survey highlights business challenges
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