[Atlas Europe] "There are more ongoing changes in parts distribution than in paint"

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What are the main changes happening in the bodywork sector?

Jason Moseley: Through IBIS meetings I’ve seen vehicle technology explode in terms of structure, materials, (electrical) energy and intelligent systems. Usually, these innovations come from European car manufacturers first, followed by North America. They therefore increase their control and the importance of their recommendations to workshops. Because of this, independent garages are starting to find it difficult to remain technically competent and credible. Their only chance of survival, in the short term, is to become part of the consolidated networks.

What are the consequences of these changes for parts distributors?

J.M.: As vehicles become more complex, their components become more and more sophisticated and so more closely tied to manufacturers. Choice in the aftermarket is shrinking. I think we are moving towards integrated online parts solutions, with tools that can be linked to the systems providing estimates automatically. We will see a long-term battle for their control. And this partly involves control of data, parts, brands, etc. The stranglehold of manufacturers is strengthening on systems such as smart headlights or ADAS. Alternatives will become rarer.

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As far as paintwork is concerned, what changes can we expect to see?

J.M.: Very recently, I've seen manufacturers like PPG and Axalta refine their business models and simplify their organisation. The regional vice-presidents are being replaced by local managers closer to the field who report direct to headquarters. For now, this has no impact on the distributors, as they need their local networks. In Europe for example, where markets remain diversified, I think there will be even more innovation in product preparation and application. To improve workshop efficiency, all the manufacturers offer systems like MoonWalk from PPG. To set them up, they require paint distributors, even in the traditional sense. This is why I don't think we will see such drastic changes in paint as in the parts world.

Nicolas Girault

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