From the Magazine: The new business plan
A look at how the automotive aftermarket required diversification, efficiency and agility in a tumultuous year
The industry navigated a complex landscape shaped by geopolitical tensions, trade uncertainties and persistent economic pressures across North America. These factors tested resilience and forced companies to rethink strategies for sustainability and growth.
Warning sign
One of the most significant shocks this year was the collapse of First Brands, a major player in the auto parts sector. This event underscored the fragility of margins in an environment still feeling the long-term effects of inflation. Analysts point to a combination of margin compression, tariff-related cost increases and the difficulty of passing price hikes onto consumers already under financial strain.
While the First Brands collapse is a more complex situation and an overall reflection of the sentiment toward private credit investments, for many, this served as a wake-up call within the automotive sector.
Throughout 2025, conversations in boardrooms and industry forums centred on diversification and adaptability. Diversified sourcing strategies emerged as a critical defence against tariff volatility and supply chain disruptions. Companies that invested early in multi-region procurement and nearshoring initiatives were better positioned to absorb shocks and maintain service levels.
Technology
Technology also played a transformative role. Artificial Intelligence moved beyond buzzword status to become a practical tool for improving productivity and operational efficiency. From predictive inventory management to automated customer service, AI-driven solutions have helped aftermarket businesses streamline processes and reduce costs.
There was a clear lesson: Embracing technology is no longer optional; it’s a competitive necessity.
While the First Brands collapse is a more complex situation and an overall reflection of the sentiment toward private credit investments, for many, this served as a wake-up call within the automotive sector.
Optimism
Financial markets added another layer of complexity. With the S&P 500 posting a 17.16 per cent year-to-date return, optimism in broader markets contrasted sharply with the cautious tone in the aftermarket.
Many companies are beginning rightsizings aggressively in anticipation of a slowdown, prioritizing lean operations and strategic investments over expansion. This proactive stance reflects a growing recognition that agility will define winners in the next cycle.
Key takeaways
So, what did we learn in 2025?
First, resilience requires foresight. Companies that anticipated margin pressures and acted early to diversify sourcing and adopt technology fared better.
Second, efficiency is the new growth engine. In a market where passing costs to consumers is increasingly difficult, productivity gains through digital transformation offer a sustainable path forward.
Finally, adaptability is paramount. Whether responding to geopolitical shifts or evolving consumer expectations, flexibility will remain a core competency.
Looking ahead to 2026, several trends are poised to shape the aftermarket.
Expect continued investment in AI and automation, not just for cost control but for enhancing customer experience. Sustainability will gain traction as regulatory pressures and consumer preferences converge.
And as economic uncertainty lingers, consolidation may accelerate, with stronger players absorbing distressed assets to build scale and resilience.
Zakari Krieger is the Fix Network, Canadian vice president of Prime CarCare, responsible for the Canadian retail business, encompassing the Speedy Auto Service and Novus Auto Glass business lines
This article originally appeared in the December issue of CARS magazine
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