“Embracing Change”
By Jim Tennant
The following is excerpted from the In-coming Chairman’s address presented on October 28 at AWDA’s 2007 Annual Conference, in Las Vegas, Nevada.

Hockey and auto parts share a similar evolution. In 1971, when I started my career in warehousing, hockey then was a loosely knit group, but very clearly dominated by Canadian players. In 2007, less than 50% of the new players entering the league will be Canadian.

On a similar note, in 1971 North American vehicles dominated the road and the parts in our bins. In 2007, North American content fell below 50% for the first time ever.

Detroit and Ottawa; in the 70’s, this was the only world that mattered to us. It was the world we concerned ourselves with, the world we lived in, traveled to, communicated with and competed in.

We now know that our world is much larger than North America. Today, it is the whole world. It’s all about Embracing Change.

Change happens quickly and unpredictably. Who will control the future?

In 1900 the #1 English speaking nation in the world was the United Kingdom. Today, 100 years later, the number one English speaking nation is China.
During the course of this short presentation; 120 babies will be born in the U.S., 488 babies will be born in China, and 702 babies will be born in India.
The amount of new technical information is doubling every 2 years, yet the US is only 20th in the world in terms of broadband and internet penetration.
It is predicted that the Top 10 jobs that will exist in 2010, did not exist in 2004.
For students that are currently in a 4 year technical or college degree, half of what they learned in their 1st year of study will be outdated by their 3rd year.

Many of these changes are being reflected in today’s automotive headlines. A few examples that likely could not have been imagined 10, 5, or even 2 years ago:

“Staying paranoid” at Toyota, keeps the company competitive as it battles “Big company disease”.
India’s Tata Motors Ltd. has announced plans to acquire Ford’s Jaguar and Land Rover Brands.
As Chery manufactures its millionth vehicle, the company partners with Chrysler to develop a lineup of entry level vehicles for export from China.
Ford has spent the last 30 years moving factories out of the US, claiming they can’t make money paying American wages. Toyota has spent the last 30 years building more than a dozen plants inside the US. In recent quarterly reports, Toyota shows $4 billion in profits and Ford $9 billion in losses.
The Chevy Impala and Dodge Charger are manufactured in Canada.
The Ford Fusion is manufactured in Mexico.
Ironically, the NASCAR Toyota is built in the U.S.
Amazon, Rock Auto, The Parts Bin, US Autoparts, eBay. Some of these names you recognize, some you may not. Who are these guys? If we refuse to Embrace Change and continue to focus on competition that ‘looks like us’, we will have our pockets picked by those that don’t look anything like us.

Going forward, information and
The technicians and shops that Embrace Change are investing in education, investing in technology and customer service. Today, the repair centre must be all things to savvy consumers and communication will be the key. The old, stereotypical wrench spinner or ‘grease monkey’, in an environment of clutter will no longer be acceptable or sustainable.

Hockey and auto parts, we’re a lot alike. In the old days, hockey players were known to be toothless and bad with their money. Today, the ‘Best’ are very professional and typically multifaceted in their income stream.

Accept the new rules of the game and quite simply become the best at the game. In today’s world, there are no boundaries, no limits and no ‘foreign players’.

Embrace Change, because standing pat is not an option. The future winners will have to take full responsibility for their products and services or else continue to watch their base erode.

Miracles do happen, especially when people wish and work to make the impossible happen.

It can be done!