CHICAGO —

Next week, the tenth annual Global Automotive Aftermarket Symposium (GAAS) will take place (May11&12) in Chicago. Celebrating this decade of annual events, the theme for this year’s GAAS is “Lessons from the Past, Perspectives on the Future.” In honor of the this tenth-annual event, we asked Mort Schwartz, chairman of GAAS, to reflect back and give us his own perspective on changes taking place in the industry in the past ten years as well as his favorite memories from past symposiums.

This year marks the tenth anniversary of the Global Automotive Aftermarket Symposium (GAAS). How does it feel to have watched the event grow and expand over the last decade?

It is extremely gratifying to see the Symposium grow to the stature that it has during the past 10 years. It is now a must-attend event that is nicely situated at the halfway point between the AAPEX/SEMA Shows in Las Vegas. So it gives the industry a great opportunity to gather together for education and networking.

Our Symposium has always been about raising funds for industry scholarships. This year, we will reach a significant milestone when we surpass $1 million dollars in scholarship funds awarded. That represents more than 1,000 students who will have been impacted by our scholarship program. We are extremely proud of this accomplishment and to the best of our knowledge, we are the only group who provides this level of support.

How did GAAS get started?

The first event was held in 1996, but the foundation for the conference started a few years before that. In the early ‘90s, organizations like Frost and Sullivan and others were requesting people from the aftermarket to speak at their conferences. They were for-profit enterprises without any evidence of putting anything back into the industry. As a result, I thought we should do our own conference where the proceeds from the event would be put back into the industry. When I shared my idea with Al Gaspar, president of APAA at the time, and Jack Creamer, who was president of AWDA, they got behind it immediately. So the first conference was put together with APAA, AWDA, and MEMA. ASIA joined the event during the second year, and we added the major associations since.

Everyone supported the idea that the net proceeds of the Symposium would be used to fund industry scholarships. This is a practice that continues to this day.

How has the intent or scope of GAAS changed over the years?

The Symposium has always highlighted global issues and has served as a listening post to understand what is going on outside the U.S. We have become even more focused on global issues during the last few years. Our keynote speakers have taken special note of what’s going on globally. We have concentrated on issues such as the impact of China, especially on outsourcing manufacturing there, along with the import/export balance.

We have also taken great pride in carefully weighing the trends of the industry and looking ahead to what may occur in the next five to 10 years. As an example, we attempt to answer the question of who will fix the cars in the future.

Anyone who has attended GAAS in the past can attest to your outspoken pride and enthusiasm for the aftermarket. What is it about the aftermarket that you enjoy most?

There is no question that I enjoy the relationships formed over the years with the members of this industry. This is probably true for anyone who focuses their career in one industry, but I have been fortunate to make lots of good friends in the automotive aftermarket.

The dynamics of our market never cease to impress me. We can all take great pride in the fact that consumers get their cars repaired and serviced the same day. This is amazing when you think about it. If you try to get your washing machine or television repaired, you may have to wait days to get this completed. We build real value for the end consumer and we are doing a better job of getting that message out through programs like the “Be Car Care Aware” campaign.

I have also enjoyed seeing our industry’s drive to innovate and become more productive. The logistics of doing more with less is truly exciting. I have also enjoyed seeing the increasing role of information technology in our marketplace. It really is all about the data, and that is especially true as the aftermarket seeks access to data from the OEs so we can service cars in the future.

What are you most proud of in regard to the annual GAAS event?

The 901 scholarships we have given out as a result of the Symposium, and the pride in knowing that we have given back to our industry in a tangible way.

The team effort we have in producing GAAS is also gratifying. We have a dynamic group of industry people who plan and produce this event each year. That’s why I’m so proud that our event is recognized as the industry’s premier educational event.

When speakers have learned the fact that the net proceeds of our event go toward industry scholarships, most have waived or greatly reduced their speaking fee. I think of GM Chairman Bob Lutz, who came to be our luncheon speaker a few years ago. Bob couldn’t stop talking about education and the fact that we were putting our money toward scholarships. We’ve had similar reactions from others as they have learned of the Symposium’s mission.

What in your opinion have been some of the most memorable presentations or moments during GAAS?

We have had so many great presentations. I think back to our first conference, in 1996. Our keynote speaker, Dr. John Stoessinger addressed the topic of the struggle for global economic dominance. I vividly recall him talking about the trend of Islamic radicalism. He addressed that issue as one of the danger points of doing business globally. He also talked about the emergence of China and India in the world economy. So Stoessinger foresaw that China was evolving as a major force in manufacturing.

Senator Carl Levin (D-MI), a great friend of the automotive industry, opened up our first session in Detroit in 2000. That same year, Larry McCurdy (then of Echlin, Inc.) gave a memorable talk about becoming a low cost producer of parts and his great confidence in the future of the aftermarket. That was also the same year we had former NFL coach and NASCAR team owner Joe Gibbs. His motivational talk really captured the essence of picking the right people whether in coaching football or putting together a winning NASCAR team. We are so pleased that he will be back with us this year for our 10th anniversary.

Byron Pond gave a great talk about manufacturing support for the changing replacement market promoting productivity and efficiencies in the aftermarket. So did Terry McCormack. David O’Reilly told us how his company was addressing the wholesale and retail markets.

We have had several great presentations on customer service. I think of Sir Tom Farmer of Kwik Fit Holdings, who came from Edinburgh, Scotland, to deliver the overwhelming message that his company’s aim is: 100 percent customer delight. What a rousing presentation he gave.

We have also had memorable panel discussions on a number of hot topics. I think especially of the battle to capture the business of the professional technician. We have not been afraid to bring together people from a variety of industry perspectives. We had a great panel in 2003 with Dick Morgan, Mark Salem, Phill Porpora and John Washbish on the supplier, WD, jobber, dealer relationship. And then John outdid himself just last year on how he overcame technology challenges and incorporated that into his company’s strategic plan.

Other presentations that stand out are Cynthia Cohen’s multiple appearances at the Symposium and the cutting edge demographic information she presented to help our industry reach out to women and young people. Tiffany Vasilchik of Faith Popcorn’s BrainReserve gave a rousing presentation last year on future trends and how to stay ahead of them.

The theme for this year’s event is: “Lessons from the Past, Perspectives on the Future.” What predictions were made ten years ago that really ring true today? In retrospect, were there any predictions made that seem funny or outdated today?

We will be bringing back some of the people who presented at the first Symposium and take a look at what they said back in 1996. Like we have done at past Symposiums, we will be looking ahead to the trends that will impact our industry in the next five to 10 years. The agenda we put together is very strong and will appeal to a wide cross-section of our industry. We have some more surprises that we will announce as the event draws closer.

I remember Temple Sloan making a strong defense for the WD/jobber channel. At that time a lot of people were predicting the demise of that distribution method. He pointed out that the continued growth in the number of vehicle models and part numbers would give distributors and jobbers plenty of opportunity to grow. He saw the automotive aftermarket as a big industry with plenty of room for diverse ideas and approaches. You can see that he got it right: WD’s continue to play an important role in the aftermarket.

When I think back 10 years ago, there was plenty of talk about mergers and acquisitions, and the consolidation of our industry. This has certainly come true and the pace of activity will continue to grow over the next 10 years.

In addition, the forecast for more global activity in our industry has taken place. We see more global sourcing of products, especially into China. As one speaker predicted, mature markets in the U.S. would encourage companies to look globally to expand their business. This prediction has certainly come true.

What are your predictions for the aftermarket? What’s in store for the next ten years?

It all comes down to who the winners will be in this industry. It is those companies that are the best managed, select and motivate the best people, have the best systems, and those who focus on the end consumer. Consumers continue to want a quick and pleasant repair experience and are looking for preventative maintenance that enable them to get better gas mileage.

We will continue to see more ownership of stores by large WDs and retailers. The lines between wholesale and retail will disappear. There will be opportunities for young people to move up in the ranks and become part of ownership. However, it will continue to be difficult for small independents to survive in the aftermarket.

The merger and acquisitions trend will continue and I think there will be a few blockbuster deals. This year we have seen a number of program groups consolidate. As the groups get larger they will leverage their buying and marketing influence even more.

At the association level we will continue to see consolidation, as well. Associations that survive will provide tangible membership benefits, quality education and government relations representation in Washington, D.C.

We saw the beginnings of global sourcing 10 years ago and the pace will continue to pick up. Especially as managers tune into the products that will help increase demand. Product management will be more and more important as time goes on.

There will be excellent opportunities in our industry for bright young people. Those who attend vo-tech schools will be able to compete just as well as the kids coming out of four year schools. There is a great demand for technicians to replace the many that are retiring or will soon retire.

Finally, I’d love to come back for the 2015 Global Automotive Aftermarket Symposium. We continue to envision that the industry will need a forum to discuss the issues of the day, and this event will continue to fill that role.

To learn more about GAAS, visit: www.globalsymposium.org.

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