Monday, November 5, 2007

News from the AAPEX Show: Auto-Wares, Prime Automotive & Snap-on Tools

Last Week at AAPEX, held in Las Vegas: Fred Bunting Receives Art Fisher Award

AWDA presented the 2007 Art Fisher Memorial Scholarship Award to Fred A. Bunting in recognition of his passion for training and education. Bunting received this honor during AWDA’s general session, held last Sunday night in Las Vegas.

The Art Fisher Memorial Scholarship Award is presented annually to an aftermarket company or individual that demonstrates outstanding commitment to education and training, either within their own companies or throughout the industry. Given in memory of former AWDA chairman Art Fisher, the award grants substantial scholarships in the name of the award winner to two students enrolled in the automotive aftermarket management program at Northwood University.

Bunting is the founder and chairman of Auto-Wares Inc. Group of Companies headquartered in Grand Rapids, MI. Auto-Wares is a full-line, full-service, full-program distributor servicing more than 600 jobbers. The company employs more than 1,500 people who together operate 336 Auto Value/Bumper to Bumper stores and 630 Auto Value/Bumper to Bumper Certified Service Centers.

For many service professionals in the Michigan region, a high point of the year is the Auto-Wares Tech Expo. Auto-Wares holds two of these events annually in Milwaukee, WI, and Grand Rapids MI. The 10-year-old event is tailored exclusively to professional technicians in automotive, heavy duty and PBE specialties. Last year, more than 3,000 techs visited Tech Expo and attended more than 4,800 training classes.

The success of Tech Expo has garnered the attention of many others in the aftermarket industry. Bunting believes that the more training our industry provides to technicians, the better it is for everyone. He has freely offered the secrets of his success and, in 2006, even granted AAIA permission to duplicate, brand and distribute instructional DVDs that provide other aftermarket companies with the how-to’s for hosting their own training events.

“Without a doubt, this program goes above and beyond in the pursuit of excellence in training and education in the automotive aftermarket,” said Larry Pavey of Federated Auto Parts in presenting the award. “It is a great pleasure to honor Fred Bunting, the driving force behind this outstanding effort.”

On a separate note, Prime Automotive, based in Olive Branch, MS has been purchased by Marubeni, a Japanese company. Prime Automotive is a member of the Tools and Equipment Distributors Association (TEDA), and has been in business supplying parts stores and distributors since 1982.

Here is information from Marubeni's corporate website: Marubeni America Corporation, along with Marubeni Corporation and Marubeni Automotive (collectively "Marubeni"), have acquired the Olive Branch, Mississippi based Prime Automotive Warehouse (“Prime”) for an undisclosed amount. Prime, established in 1982, is an industry leader in the distribution of aftermarket auto parts, chemicals, and tools to its large reseller customer base. Prime mainly markets its products through a monthly catalog.

Marubeni recognized several growing trends in the US aftermarket, including the steady demand for parts and chemicals that keep older vehicles running. According to the Automotive Aftermarket Industry Association (AAIA), the automotive aftermarket market has grown from $138 billion in 1997 to over $204 billion in 2006.

The market for automotive aftermarket parts is competitive and highly fragmented. The transaction will allow Prime to combine its sourcing and mail order expertise with Marubeni’s domestic and international networks. As part of its growth strategy, Prime will consider acquisitions in its current industry as well as new markets that will allow it to further expand its product line.

Steve Friedman will continue as President of Prime and there will be no changes to operating management. Prime will be managed within Marubeni America Corporation's Transportation. Industrial Machinery, and IT business unit. This unit also manages Marubeni’s auto leasing operation, Advantage Funding, and dealership network, Drivepoint.


And how about this from Snap-on? They reported a higher net sales and income in 3rd quarter than expected. With an increase in net sales of 14.5% and an increase in net income of 31.4%! These figures bring their net sales to $680.7 million and net income $41.4 million. I'd say they're having a great year so far!

Sales from the company’s tools group increased $18.1 million,or 7.4 percent, to $262 million. This was primarily because of a 5.4-percent increase in North American franchise sales and strong sales from some of Snap-on’s international franchise operations, primarily the United Kingdom and Australia. Meanwhile, diagnostic and information group sales increased $25.1 million, or 19.8 percent, to $152 million due, in part, to the 2006 acquisition of Snap-on Business Solutions.

Check here later for more news on what's happening with the big tool guys!

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