By Amy Antenora, Editor

STAUNTON, Va. – In this week’s Executive Interview, we hear from Rusty Bishop, CEO of Federated Auto Parts. Read on to learn more about Federated’s recent spike in membership, and Bishop’s thoughts on such issues as consolidation, branding and sourcing product from overseas.

Bishop began his career in the automotive aftermarket 38 years ago when he joined Fisher Auto Parts where he held a number of positions in warehouse and jobber store management and also served as a director of the company. In 1985, Bishop co-founded Federated Auto Parts Distributors, a program marketing group for major warehouse distributors in the United States and Canada. Through the years, Bishop’s leadership allowed Federated to grow to become one of the leading program groups in the industry. He currently holds the position of CEO of Federated, which is headquartered in Staunton, Va.

Bishop’s long history of service to the automotive aftermarket includes: Board of Directors of ASIA 1991-1993; AWDA Membership and Marketing Committee Chairman 1999-2002; AWDA Board of Governors 2000–2003 and 2005-present. Bishop serves on the University of the Aftermarket Board of Trustees and has also served several years on AWDA’s Annual Business Conference Task Force.

In 2006, Bishop became secretary of AWDA and currently serves as its vice chairman. He was a presenting panelist at the 2007 Global Automotive Aftermarket Symposium.

Bishop resides in Waynesboro, Va., with his wife Barbara, where he is an active member in his church and community.

Federated Car Care membership grew by 40 percent in 2007. To what do you attribute this spike in membership?

The Federated Car Care Program gives independent service providers the tools to compete in today’s marketplace and the response to the program continues to be tremendous. It is a partnership between Federated stores and some of the best shops in the country, providing them with marketing and technical support along with a host of other business building aids including a credit card program, uniform program, national warranty, leasing program, and many other advantages like exclusive promotions just for Car Care members. In addition, Federated supports its Car Care Center members through national radio and television advertising, promoting their businesses and a positive image of the industry. The program is truly a win-win. Independent service providers are important not only to Federated and its distribution members, but to the driving public as well.

Speaking of membership, there is a lot of consolidation happening within the warehouse distribution segment. What kind of an impact, if any, is this having on Federated membership, and where do you see the market heading?

Consolidation is certainly a factor in our segment of the industry. While Federated isn’t immune to it, we have been fortunate that it has had a limited impact on our membership. Federated is still made up of mostly family-owned businesses and, in most cases, they have next generation management either in place or being groomed. Our members have a great work ethic and take advantage of the various Federated programs, and most are having better than average financial results. While consolidation will likely continue as the market evolves and companies look for ways to gain share and become more cost effective, we see our members as consolidators rather than consolidatees.

These are tough economic times. What are you hearing from your members in regard to any impacts they are feeling from the high fuel costs today? Is it impacting how they charge or handle deliveries? Is there anything that a program group such as Federated can do to help its membership in a situation like this?

Certainly these are challenging times and Federated members have to work harder than ever to offset some of the market trends. With drive miles down, the replacement rates for many components and systems have lengthened, reducing overall demand. Obviously, this is one result of higher fuel costs.

Federated provides a conduit for members to share ideas and discuss new concepts or processes where creativity can have great benefits. For example, we just had our national meeting in Dallas and we spent a great deal of time discussing ways to build sales and reduce operating expenses. Federated provides information and a platform for networking and sharing experiences and then our independent entrepreneurs find the best ways to improve their individual businesses.

Many aftermarket manufacturers today source products from China. Some still have reservations or concerns over product quality and safety, however more manufacturers are making the leap. Is the use of products sourced from China a concern for your membership today, or do you feel the product quality has improved?

Good quality processes are not necessarily geographic. We have seen quality improve in all areas from almost all suppliers. We support some of the best manufacturers who have global production and have some of the best quality in the business. Today’s technicians are looking for products that they can rely on to reduce comebacks. They want the p rod uct features and benefits that provide performance equal to or better than OE along with the support required for them to stay competitive. While there may be some value attached to where the product is produced, it is secondary to the design, quality and performance of the parts. At Federated, our goal is to partner with the best manufacturers and suppliers to provide outstanding overall value to our customers, wherever the parts may be produced.

How important is brand to your membership? How is Federated’s product strategy different from other program groups?

We believe that brands are still important to professional technicians as vehicle systems have become more complex. Brands provide great overall value and strong brands enjoy increased confidence in p rod uct quality. Brands that offer late model coverage, technical assistance, sales support, training, catalogs and repair information are very important to Federated members. We work hard with our supplier partners to promote premium name brand products and to communicate the benefits that they provide to the market. Federated’s strategy of co-labeling with manufacturers’ brands is a way to provide customers with name brand benefits while also promoting the Federated advantages. This approach continues to serve our members well.

As I understand it, you are the incoming chair of the Automotive Warehouse Distributors Association (AWDA). What plans do you have for your term when it begins next fall? What goals do you have for the association?

Consolidation has impacted all segments of our industry including associations, and AWDA has not been immune. In 2004, AWDA joined forces with AAIA as an individual segment offering unique programs for its members. Today, with the added resources provided by AAIA, AWDA can focus on the areas that members value most. AWDA is rich in tradition and, as the oldest organized group of warehouse distributors, its unifying spirit has been shared by AWDA members for over 60 years. My goal for AWDA is to foster that atmosphere and expand our segment’s involvement in initiatives vital to our industry, such as the “Be Car Care Aware” campaign. Personally, I will continue to promote the importance of continuous education for the aftermarket. With all the change taking place in our industry, training and educational programs are more important than ever. We have tremendous resources available through our suppliers, program groups and the University of the Aftermarket . Investing through education produces great results.