Rusty Bishop began his career in the automotive aftermarket more than 40 years ago when he joined Fisher Auto Parts where he held a number of positions in warehouse and jobber store management and also served as a director of the company. In 1985, Bishop co- founded Federated Auto Parts Distributors, a program marketing group for major warehouse distributors headquartered in Staunton, VA. Through the years, Bishop’s leadership allowed Federated to grow to become one of the leading program groups in the industry.
Bishop’s long history of service in the automotive aftermarket includes: Board of Directors of ASIA 1991-1993; AWDA Membership and Marketing Committee Chairman 1999-2002; AWDA Board of Governors 2000–2003 and 2005-present. He also served several years on AWDA’s Annual Business Conference Task Force. Bishop currently serves as Chairman of the University of the Aftermarket Foundation Board of Trutees.

One major industry trend is that most Americans are holding onto their vehicles longer. As a parts supplier, what product categories do you see benefiting most from this trend?

At Federated, we follow industry trends in an effort to better understand and anticipate changes in the marketplace. It’s true that consumers have been keeping their cars longer and that trend has resulted in an increase in vehicle maintenance that helps move products like filters and wiper blades, but it also has created more demand for replacement parts.

In fact, over the past few years we have seen growth in replacement parts as a percentage of total aftermarket spending. This is due directly to an increase in the average vehicle age and the soft economy. Product categories like brakes, shocks and struts, axles, bearings, timing parts, etc. all benefit from the extended mileage of vehicles kept longer by car owners.

With this focus on replacement parts, we are seeing growth in the professional service sector and a decline in do-it-yourself repairs.

What steps is Federated taking to improve parts fulfillment, information systems, reduce costs and so on?

Many distributors today carry in excess of 200,000 different parts. With the average age of vehicles at historic highs plus the proliferation of nameplates and models, it is very difficult to always have every single part in stock. We are dedicated to providing complete coverage in all categories to help our professional service providers exceed their customer expectations.

Federated distributors are investing in systems and processes to improve availability. There is a focus on speed and accuracy in everything we do from delivery service, information and responses to integrated systems that provide data seamlessly at the lowest possible cost. Our members are investing in new facilities designed for faster order processing, better stocking capabilities and bar code equipment that allows for paperless processing. We are integrating with our suppliers and collaborating with our customers to deliver useful, timely and more complete information.

Federated works to help our customers and suppliers reduce cost. This is done through enhanced processes, information and execution methods. For example, communicating a catalog discrepancy, identifying a high warranty item, forecasting the need for a new item, or providing a service bulletin or technical information can all provide value and cost reduction that may be difficult to measure. That’s why we offer a shop profitability analysis and training designed to help quantify and measure improvement opportunities and potential. In short, day in and day out, we do everything we can to improve everything we do.

Other than parts for maintaining and repairing cars and light trucks, does Federated offer niche lines and other specialized products?

We are always looking to supply customers with new products whenever possible, and this can mean adding a niche line to complement a product offering. The Federated Co- Man warehouse is extremely effective at creating complete categories by partnering with multiple suppliers focused on doing what they do best.

The Co-Man operation also allows us to consider emerging categories and make them available to members be- fore market demand is mature. With some of the new technology and diagnostic-driven products, we are seeing once-emerging product categories mature and grow, allowing for new categories to come to the forefront. We are working closely with suppliers to develop more coverage for specialized markets like marine, farm and fleet, industrial and so on, and we support Opticat’s efforts to expand catalog listings in many of these areas.

What issues keep you up at night?

We worry about the amount of inventory that exists in the distribution network today and how new technology will impact our business and that of our customers. We know that vehicle manufacturers want a bigger share of the service market and are trying to “lock out” independent repair shops. That’s why we are so appreciative of all those who are fighting for the Right to Repair legislation that is critical to not only our industry, but the motoring public.

Also, because we are concerned about a thriving future for the motor vehicle aftermarket, we support a variety of education initiatives to help attract and train talented individuals that make an industry strong.

What’s your gut feeling about the outlook for the remainder of 2013 and 2014?

In the coming years, Federated members will continue to sell parts, shops will continue to repair vehicles and consumers will continue to get tremendous value from the aftermar- ket. I believe that there is an opportu- nity for sustained growth in the after- market with an older vehicle population, slow new car sales recov- ery, an improving economy and a growing vehicle population. Taking advantage of the opportunities ahead requires collaboration with our cus- tomers and a renewed focus on consumers.

Federated offers many valuable tools to customers, including the best marketing and support program in the industry, the Federated Car Care Center program. Because service providers have limited time to spend with their customers, Federated has developed training programs to help shops strengthen customer connection and retention levels, attract new patrons, increase vehicle count and the average cost of repair orders, and enhance and grow their bottom line.

While things may not get easier in the coming years, this is a business that rewards hard work and honesty. When I look at our membership, service provider customers and supplier partners, I feel very optimistic about the future.