From the Magazine: Marking the priorities
Profitability, AI adoption, and the next chapter for Canada’s aftermarket distribution channel
The year 2025 marked a period of unprecedented change across the automotive industry. Consumer sentiment toward electric vehicles evolved unevenly, artificial intelligence moved rapidly from theory to application, discretionary spending remained under pressure from the lagging effects of inflation and elevated interest rates and global political shifts created uncertainty across supply chains and markets.
For many segments, these forces created instability. For the aftermarket distribution channel and the jobber community, however, 2025 can best be defined by resilience and perseverance.
As we look ahead to 2026, the outlook for jobbers and distributors must move beyond simply navigating headwinds. The focus must shift toward intentional transformation: Prioritizing profitability, operational efficiency and smarter use of technology. Artificial intelligence and system integration will be the defining levers that separate those who merely survive from those who build sustainable competitive advantage.
Having spent years managing and owning a family business of jobber stores, I experienced firsthand where the pressure points exist. Our largest overhead category was labour, with a significant portion concentrated at the parts counter. Skilled counter staff are the backbone of any successful jobber operation, yet they are also increasingly stretched — balancing phone orders, walk-ins, online requests, pricing questions, product lookups, returns, documentation and relationship management.
This is where the trajectory of AI development becomes not only relevant but essential.
For many segments, these forces created instability. For the aftermarket distribution channel and the jobber community, however, 2025 can best be defined by resilience and perseverance.
AI as a practical tool
Artificial intelligence is often discussed in abstract or futuristic terms, but its real power for the aftermarket lies in practical, everyday applications. The distribution channel operates on thin margins, high transaction volume and service expectations that continue to rise. AI offers both tangible and intangible benefits to jobbers, distributors, and their service shop customers.
Consider the integration of AI-driven chatbots into parts ordering platforms. Rather than relying solely on counter staff to handle routine inquiries, shops could interact with a jobber’s AI assistant for common tasks such as:
- “Show me my last three orders for wiper blades.”
- “What part numbers did I use last time for my filter order?”
- “Add my usual bulk oil order to the cart.”
- “What’s the availability on my top-selling brake pads?”
These are not complex technical questions, yet they consume an enormous amount of time across the industry. Today, they require manual lookups, documentation, and staff attention. With properly trained AI tools, much of this can be handled instantly and consistently, freeing counter teams to focus on higher-value interactions — problem solving, relationship building, and technical support.
From my experience managing sales operations, I saw how much productive time was lost to manual processing: Pricing, order entry, corrections, confirmations. Every minute spent keying in routine orders is a minute not spent on the phone helping a customer diagnose an issue or recommending the right solution. AI-integrated ordering systems have the potential to reverse that equation.
Personalization, simplicity
Beyond automation, AI offers another critical advantage: Learning customer behaviour. When integrated into parts platforms, AI can analyze buying habits, preferred brands, common applications, and seasonal trends. The result is a more personalized and simplified ordering experience for shops.
This matters because many shop owners and technicians are not deeply focused on brand hierarchies or catalogue complexities. Purchasing decisions are often driven less by brand strategy and more by trust, familiarity, availability, and simplicity. While offering multiple lines and options can be a competitive advantage, it can also introduce confusion, especially within complex online catalogues.
A well-designed AI layer can reduce that confusion. Instead of presenting endless options, it can recommend the most relevant parts based on a shop’s history, vehicle mix and past preferences. In this way, generative AI becomes a guide rather than a replacement by supporting better decisions, faster transactions, and a more intuitive user experience.
Building out AI capabilities within the distribution channel will become an arms race over the next several years. Those who invest early in improving the shop experience, reducing friction in ordering and driving internal efficiencies will strengthen relationships and defend market share. Those who delay risk becoming commoditized in an already overserved and highly competitive segment.
While offering multiple lines and options can be a competitive advantage, it can also introduce confusion, especially within complex online catalogues.
Margins, labour and timing
The need for this transformation couldn’t be more urgent. Jobbers today face persistent margin compression, rising labour costs and customers who are themselves under pressure. Repair shops are balancing the quality of parts with affordability for their end customers, all while trying to protect their own profitability. Consumers, in turn, remain sensitive to price in a high-cost environment.
In this context, AI is not about replacing people — it’s about maximizing the impact of the people you already have. Reducing the volume of low-value manual tasks can allow jobbers to operate more efficiently, improve service levels and protect margins without compromising customer relationships. For many businesses, even small productivity improvements can have an outsized impact on overall profitability.
This is a critical inflection point. Jobbers who begin adopting AI-driven tools — whether through their existing distribution partners, third-party platforms or internal initiatives — will be better positioned to weather ongoing economic uncertainty.
More importantly, they will build healthier, more scalable operations.
Consolidation
Another major trend shaping the outlook for 2026 is continued consolidation across the aftermarket distribution channel. In Canada, multi-generational jobber businesses remain a key target within growth strategies for large aftermarket players. Much of the capital driving this activity is publicly traded, often supported by large U.S.-based organizations operating through Canadian subsidiaries.
This consolidation is unlikely to slow in the near term. As interest rates stabilize or trend lower and political-business conditions become somewhat more predictable, mergers and acquisitions will remain central to growth strategies. For independent jobbers, this creates both opportunity and urgency.
Succession planning and exit strategies are no longer abstract concepts — they are practical business considerations. Whether a business owner intends to sell, partner or remain independent, enterprise value will increasingly be influenced by operational sophistication. Buyers are not only acquiring revenue; they are acquiring systems, processes, and scalability.
This is where even modest investments in technology can deliver significant returns. Implementing better inventory management tools, improving digital ordering experiences, integrating AI-driven customer support, or reducing reliance on manual processes can all contribute to stronger EBITDA performance. In a market where valuations are closely tied to profitability and efficiency, these incremental gains can materially impact outcomes.
Looking Ahead
The aftermarket has always been adaptive. Jobbers have navigated technological shifts before, from paper catalogues to electronic cataloguing, from phone-based ordering to online platforms. AI represents the next evolution, but it also represents an opportunity to rethink how work is done across the distribution channel.
My outlook for 2026 is one of cautious optimism. The challenges facing the industry — economic pressure, changing consumer behaviour, competitive intensity — are real. But so are the tools now available to address them.
Jobbers who embrace innovation, invest in efficiency, and focus on delivering a simpler, smarter experience to their shop customers will not only survive the next wave of change; they will help define it.
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 January issue of Jobber News
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