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Dana Receives MEMA Aftermarket Suppliers DEI Award
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By Counterman
The Aftermarket Warehouse Distributors Association (AWDA), a community of the Auto Care Association, presented its 2024 Lifetime Achievement Award in Honor of Martin Fromm to Sue Godschalk, president of Federated Auto Parts. The award was presented by AWDA Chairperson Ashlee Arnold on Nov. 3 at AWDA’s 2024 Annual Conference in Las Vegas.
AWDA’s Lifetime Achievement Award recognizes individuals who have, over the course of many years, distinguished themselves through their unselfish commitment to, and high level of performance within, the motor vehicle aftermarket industry. The award is named in honor of former AWDA President Martin Fromm.
Starting 52 years ago at the bottom and working her way up to the very top of the organization, Godschalk began in the aftermarket in the inventory control department and this year will go on to become CEO of Federated Auto Parts. She has experienced great success in an industry that has been traditionally dominated by men.
Like many small business leaders, Godschalk wears numerous hats including managing financials, people, meetings, payments, rebates and much more. She’s a consensus builder who listens, contributes, pushes hard for what she believes in and then implements the plan better than nearly anyone else.
Godschalk leads through servant leadership, collaboration and by putting the time in until the job is done. Like all great leaders, she seeks professionalism over popularity. She doesn’t seek the limelight and accomplishes far more than nearly everyone else, and for years has been able to set new standards working alongside her husband Herb.
Godschalk had great mentors in Larry Pavey, Rusty Bishop and Art Fisher, as well as all of the Federated membership. Her team has benefited from being around such a highly capable person who is the perfect combination of a productive manager, worker bee, and intelligent team player.
Great plans can often fail without excellent execution and Godschalk works the plan as well as anyone and deserves credit for all of her successes both personally and professionally. While working long hours, she finds time to support her church as the lector and the secretary of the parish council. She also loves to cook and entertain, and in high school, she was even a starter on her basketball team and the captain of their cheerleading squad.
The independent aftermarket has a world-class “cheerleader” and an expert “player” in award winner Sue Godschalk.
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By Counterman
The Aftermarket Warehouse Distributors Association (AWDA), a community of the Auto Care Association, presented the 2024 Art Fisher Award for Excellence in Education, to Larry Pavey, CEO of the Automotive Products Services Group. The award was presented on Nov. 3 by AWDA Vice-Chair Fletcher Lord III at AWDA’s 2024 Annual Conference in Las Vegas.
AWDA’s Art Fisher Award for Excellence in Education is presented annually to an aftermarket company or individual that demonstrates outstanding commitment to education and training, either within their organization or throughout the industry. Given in memory of former AWDA Chairman Art Fisher, the award grants scholarships in the name of the award winner to two students enrolled in the automotive aftermarket management program at Northwood University.
Larry Pavey, CEO of the Automotive Parts Services Group, has spent his entire career in the automotive aftermarket, starting in sales at Walker Manufacturing, then on to the BWD division of Echlin. He served as vice president of marketing for the Borg Warner, Niehoff and Whitaker brands.
With Pavey at the helm, Echlin’s brake business made more than 20 acquisitions, becoming the largest brake supplier in the aftermarket industry. He served as president of Echlin’s North American Operations and later president of Dana’s Under Vehicle Group.
Today Pavey serves as CEO of the Automotive Parts Service Group, a joint venture between the National Pronto Association and the Federated Alliance. He has been active in many industry associations, serving on the boards of ASE, AAPA, MEMA, the Auto Care Association and the AWDA Board of Governors.
In 2016 Pavey was presented with the Martin Fromm AWDA Lifetime Achievement Award and in 2018 he was presented with the Jack Creamer Leader of the Year Award.
His commitment to the automotive aftermarket is long and varied. He has worked on both sides of the supply chain. He is a quiet but effective leader and teacher who has had a major impact on the industry.
Pavey has the ability to look at the industry as a whole and strive to do what is best for everyone to help them succeed.
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By Counterman
The Aftermarket Warehouse Distributors Association (AWDA), a community of the Auto Care Association, presented its 2024 Pursuit of Excellence Award to Larry Pacey, president and CEO of NPW Companies. The award was presented by AWDA Secretary Cliff Hovis at the association’s 2024 Annual Conference on Nov. 3 in Las Vegas.
Established in 1983, the Pursuit of Excellence Award is presented exclusively to an AWDA member for special achievement and for the setting of high standards as an example for others to follow, in business and in volunteer or advocacy efforts.
More than 55 years ago, Larry Pacey founded NPW Companies, then known as National Carburetor Exchange, out of a 600-square-foot building. Pacey did everything from sales and collections to rebuilding carburetors entirely on his own. Five decades later, the company — still led by Pacey but now staffed by an effective team — boasts 30 locations across the United States and Canada, including more than 100 corporate and independently owned jobbers, and services nearly 200 Auto Value, Bumper to Bumper and Confidence Plus Certified Service Centers. With Pacey at the helm, NPW is one of the most expansive and fastest-growing warehouse distributor powerhouses in the nation.
Pacey had a big vision for NPW Companies from the start. Within five years of founding, he evolved the business to include a retail parts store handling many performance lines. In 1974, the business became a warehouse distributor carrying all performance lines. Throughout the 1980s, Pacey grew the business through expansion into traditional parts and opened additional warehouses in Orlando and West Palm Beach, Florida. He added truck accessories to the company’s product offerings in 1998.
In 2008, Pacey’s team acquired Southern Performance Warehouse, marking the beginning of the company’s quest to significantly expand their footprint. Over the next 10 years, the company completed more than 20 acquisitions in many different regions. Through the strategic acquisition, organic sales growth and strong leadership, the company became dominant in the aftermarket and continues to grow quickly, even amid the uncertainty of the pandemic.
NPW Companies is known for its major industry-wide events, hosted by Pacey. At the company’s annual golf tournament, Pacey takes on all players on the “Beat the Boss” hole to ensure he gets to interact and play with every guest at the event. The company’s annual FAST Florida Automotive, Speed & Truck Expo brings in thousands of attendees. And the nearly 10-year-old Million Dollar Dinner, exclusive to vendor partners who do more than $1 million of business with NPW Companies, is a black-tie affair beloved by invitees. The company has also expanded its trade show presence to Canada.
Pacey and his team are actively involved within the industry as he formerly served on the boards of the AWDA Board of Governors.
Today, NPW operates in over 1,500,000 sq. ft. of warehouse space with 23 distribution centers, Alaska, Alabama, Arizona, California, Florida, Idaho, New Mexico, Oklahoma, Oregon, Rhode Island, Tennessee, Texas, Utah, Washington and Canada. NPW services over 30,000 accounts in North America and several international markets. A team that size with that massive of a footprint needs a foundation to succeed and that begins with education and industry training.
NPW, as a member of the Alliance and under Pacey’s leadership, has both orchestrated and attended three successful Alliance Aftermarket Jackpot Conventions in Las Vegas, bringing more than 6,000 technicians and shop owners to AAPEX over the years. As a member of the Alliance Board of Directors, Pacey’s leadership and belief in education was a driving force in bringing large contingents of shop, service and repair professionals to AAPEX and connecting them with their distributor partners and the manufacturers who operate in the aftermarket channel.
Pacey and his team are Auto Care Political Action Committee (ACPAC) supporters, and are always seen on the hill as political advocates, actively engaging with both local and national lawmakers; advocating for H.R. 906 The REPAIR Act and the Technicians’ Right to Repair.
NPW’s team under Pacey’s leadership and guidance are active supporters of The University of the Aftermarket and the University of the Aftermarket Foundation, including the Auto Value and Bumper to Bumper scholarship program, which in total has provided nearly $600,000 to students pursuing industry and secondary education.
Pacey continues to sponsor Young Auto Care Networking Group (YANG) as well as Women in Auto Care (WiAC).
Outside of the industry, Pacey supports the First Tee program in Miami, Florida, which is a youth development organization that enables kids to build strength of character by integrating the game of golf with a life skills curriculum. His industry involvement is expansive and impressive company footprint are tributes to his success as a backbone and leader of the aftermarket.
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By Counterman
“Humans think AI is going to replace them,” says Mike Mohler, executive vice president and chief purchasing officer with the Automotive Parts Service Group.
“It won’t. Somebody using AI to be better than you will replace you.”
The integration of artificial intelligence in the aftermarket is more advanced than many people might realize, according to Mohler. It’s already yielding impressive results for those who are using it effectively. The primary challenge is not just the availability of data, but the effective use of that data to drive actionable insights and decisions. Mohler cites a report from Accenture showing that AI-driven price optimization can result in a 5% increase in gross margin and a 15% boost in revenue.
“You look at some of our competitors, and they’re able to post comparatively outrageous profit margins,” says Mohler. “They’re using AI for logistical prowess. They’re using it for customer service. They’re using it to get the right pricing in play.”
The ability to make informed decisions based on comprehensive data analysis is a major advantage of AI. Data scientists in the aftermarket industry are increasingly using the technology to turn large sets of data into actionable insights. This includes identifying market trends, customer preferences and operational inefficiencies. The application of AI in this area can lead to better strategic planning and improved business outcomes. Mohler says those applications can have a significant impact on profitability.
“Let’s say the average WD would have a 25-45% gross profit margin, given their business model. Some competitors are posting 58%. AI is going to be the tool to help them catch up. We’ve got to get to 53% minimum, I think. That’s a rarefied position, but it’s been tested by some of the smartest people that I know, and it should be achievable when we’re planning and we’re hoping that it is,” Mohler explains.
A Customer Experience Revolution
AI’s application extends to customer service as well. Chatbots and virtual assistants are now commonplace, offering customers quick and efficient service. These AI-driven tools have evolved to the point where they can engage in conversations that are increasingly indistinguishable from human interaction.
“I wonder how many people know that they’re talking to a chatbot when they’re talking to a chatbot?,” asks Mohler.
Navigating the Risks
Despite its advantages, AI’s integration into the aftermarket raises several concerns. Cybersecurity is one of them, as increased reliance on data systems introduces new vulnerabilities.
“We have employees with access to the internet at a thumb’s notice, and if we’re not careful, they can mistakenly click on something that could disrupt our business for months,” Mohler explains.
Mohler also expresses concerns about protecting intellectual property. Misuse of data or inadequate protection against competitive eavesdropping could undermine trust and impact the industry’s integrity.
“Once the data hits the public domain, how do we protect it and how do we make sure that it’s not being used against us? How do we know that we’re not enabling our competitor who’s able to electronically eavesdrop on one another like never before?,” asks Mohler.
Envisioning AI’s Next Steps
Mohler stresses that AI’s influence on the aftermarket is only in its infancy. Over the next 5-10 years, he envisions an advancement from a basic understanding of AI as an algorithmic tool to more specialized applications tailored to industry-specific needs.
“So my thought would be that companies would have their own internalized GPTs and industries would have their own internalized GPTs. My hope is also that we will become as skilled at selling to disembodied customers via e-commerce as we are at selling to them when they’re across the counter from us or in our stores,” Mohler says.
Mohler references the seven stages of AI when looking ahead to the technology’s impact on the aftermarket.
“When it comes to supply chain, when it comes to logistically moving products around, when it comes to optimizing sale price, optimizing customer service, my hope is that we will be a little closer to stage seven. Right now, we’re really at stage one and a half, maybe two,” says Mohler.
As the technology evolves, moving beyond its current capabilities, AI’s exact impact on the aftermarket, and countless other industries, will be even more profound. Companies that invest in AI and adapt to its changes will be well-positioned to thrive in the future of the automotive aftermarket.
“It’s incumbent upon us to understand AI and to become data scientists ourselves, because everybody’s got access to the data. Whoever can use the most disparate sources for the best outcomes is going to win in my overall view of it,” says Mohler.
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