Chris Angelicchio Executive Director ServNet
Industry Perspective by Chris Angelicchio
Executive Director, ServNet
ServNet auctions, like most businesses in the automotive industry, are witnessing change at a pace accelerating faster than ever before. Our auctions are navigating the uncertainties caused by supply chain issues, accommodating growing numbers in online purchasing, and planning for capital improvements and production strategies to keep pace with the rise in demand for electric vehicles. As has been their focus for decades before and will continue to be for decades to come, ServNet auctions continue to demonstrate their ability to adapt to meet the needs of their customers and a dynamic market.
Over the past twelve months, our group of independently owned auctions have been able to grow their businesses despite the overall decline in volumes. As the industry has evolved, ServNet auctions have been nimble and able to meet the demands of its customers. Almost overnight the auctions have transformed their traditional business plans into a hybrid model, retaining the immediacy of an in-lane auction environment while selling nearly half of all vehicles through digital channels.
The limited supply of vehicles, combined with the increase in digital transactions, has nearly doubled the distance between buyers and the locations from which the dealers are sourcing their inventory. Because of that distance, building buyer confidence and improving the transparency of all transactions has been critical in building the digital market. To that end, ServNet auctions are focusing their attention and resources on enhancing the technology and inspection process. Modern imaging technology is becoming widespread at ServNet auctions, resulting in condition reports that offer improved visibility and transparency. Not far off is the addition of artificial intelligence for body work and damage detection, eliminating subjectivity and increasing consistency in inspection reporting.
With the changing landscape in the automotive industry, ServNet auctions have experienced increased demand for ancillary services, such as fleet maintenance, reconditioning services and marshaling. As ride sharing services and mobility fleets become a larger part of the overall automotive ecosphere, we believe there will be increased demand for these services.
As governments drive the shift from the internal combustion engine, the automotive industry is observing rapid growth in electric vehicle sales, up as much as 85% year over year. With those vehicles due to hit the used vehicle market in the coming months, ServNet auctions are installing charging stations, training mechanical technicians and educating their employees to safely handle electric vehicles. One of the biggest challenges we see with used electric vehicles in the wholesale environment is accurately disclosing the health of the vehicle batteries, and work is underway to accurately assess and document those batteries in every electronic vehicle processed at a ServNet auction.
In the face of change, ServNet auctions remain firmly committed to the customers they serve. To continue to build and strengthen their individual businesses and the industry at large, our auction owners continue to look ahead, formulating strategies to remain a vibrant force in the marketplace. ServNet’s auctions not only lead the industry with superior facilities and customer service, but are shaping its future. They will continue to grow and adapt to meet the needs of its customers and provide the best auction experience at auctions across the country.