Quantcast
Jump to content

Recommended Posts

Posted

Mark Phillips is editor and publisher of Aftermarket Intel and has been in the automotive aftermarket for more than 12 years. Previously, he was editor of newspapers in several cities in Ohio and Boston. He is a graduate of Ohio Wesleyan University.  Aftermarket Intel HERE.

Key Talking Points:

  • Automotive industry- essential industry during the pandemicLos Angeles County stay at home orders for next three months but Ohio has more than 90% of businesses are open- long road to reopening as a country
  • To get unemployment down to where it was (4%) it could take up to a decade or more 
  • Easy to stop the economy and have people stay at home, harder to bring people back
  • Travel continued to be limited
  • Manufacturing facilities starting to reopen- are consumers ready to buy/lease vehicles when uncertain about employment? Opportunity for aftermarket repair businesses
  • GDP for the US is $20 trillion, over $20 trillion in debt- cannot stop spending 
  • New legislation of $3 trillion for a relief package
  • Fear and uncertaintyWhat is coming? How to deal with it?   
  • Luxury goods are no longer needed
  • More conservative with stimulus checks
  • VaccinePeople rely on what they know- most are not medical experts
  • Some people do not take flu shots and would be hesitant to take Covid-19 vaccine

Resources:

  • Thanks to Mark Phillips for his contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Love what we do, buy a cup of coffee HERE.

Be socially involved and in touch with the show:

Facebook   Twitter   Linked In   Email

Listen for free on Apple Podcasts, Google Podcasts, Spreaker, iHeart Radio, Spotify, Podchaser and many more. Mobile Listening APP's HERE

Join the Ecosystem - Subscribe to the INSIDER NEWSLETTER HERE.

Buy Carm a Cup of Coffee 

This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion global automotive aftermarket industry and has everything you need to stay ahead of the curve. With 2,500 exhibiting companies, you’ll see the latest products, parts, and technologies for your business. As a result, the event also offers advanced training for shop owners, technicians, warehouse distributors (WDs) and auto parts retailers, as well as networking opportunities to grow your business. AAPEX 2020 will take place Tuesday, Nov. 3 through Thursday, Nov. 5, 2020 at the Sands Expo in Las Vegas. Therefore, more than 48,000 targeted buyers are expected to attend, and approximately 162,000 automotive aftermarket professionals. They will be from 135 countries which are projected to be in Las Vegas during AAPEX 2020. For information, visit aapexshow.com

Shop-Ware-Call-To-Action-Graphic-v3.png

This episode is brought to you by Shop-Ware Shop Management. It’s time to run your business at its fullest potential with the industry’s leading technology. Shop-Ware Shop Management will increase your efficiency with lightning-fast workflows, help your staff capture more sales every day, and create very happy customers who promote your business. Shops running Shop-Ware have More Time and generate More Profit—join them! Schedule a free live demonstration and find out how 30 minutes can transform your shop at shop-ware.com

Click to go to the Podcast on Remarkable Results Radio

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Available Subscriptions

  • Have you checked out Joe's Latest Blog?

         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.
  • Similar Topics

    • By jaybazzi
      I've came across this website a few times hirefrederick.com suppose to bring in return customers and fill in your gap appointment spots anyone ever try this? What's your thoughts on it? 
    • By brian61
      I am thinking of changing my internet advertising company. Has anyone used justthebestmarketing.com before and what kind of results did you get?
    • By carmcapriotto
      Thanks to our Partners, NAPA Auto Care and NAPA TRACS Watch Full Video Episode What does it take to build one of the fastest-growing auto repair businesses while leveraging artificial intelligence to improve performance at every level?
      In this episode, Carm Capriotto welcomes Jesse Jackson, Founder and CEO of Mango Automotive, to discuss how she scaled from zero to eight locations in less than five years. Jesse shares the leadership lessons learned through rapid growth, how custom AI tools are helping improve customer experience and operational consistency, and why she believes it's time to rethink how independent shop owners plan their exit from the industry.
      What You'll Learn How Mango Automotive expanded from a startup to eight locations through strategic acquisitions. The leadership challenges that come with rapid growth and why building a corporate support team became essential. The three cultural principles that drive employee engagement: never yell, bonus well, and have fun. How AI is being used to measure standard operating procedures and improve accountability. Why analyzing phone conversations with AI helps advisors convert more callers into customers. How providing realistic price ranges over the phone can improve appointment conversion rates. How AI-driven follow-up processes dramatically increased maintenance rebooking rates. Practical ways any shop owner can use tools like ChatGPT or Claude to evaluate service advisor performance without spending hours reviewing phone calls. Why thousands of shop owners approaching retirement may be leaving significant business value on the table. How Jesse's cooperative exit model could help independent shop owners achieve substantially higher business valuations than traditional private equity acquisitions.
      Artificial intelligence isn't replacing great leadership; it's making great operators even better. Combined with a strong culture, measurable processes, and innovative thinking about business ownership, AI can help repair shops improve customer experience, scale more effectively, and create greater long-term value for both Jesse Jackson, CEO, Mango Automotive, 8 locations Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/
      Connect with the Podcast:
      Visit the Website:https://remarkableresults.biz/ Subscribe on YouTube:https://www.youtube.com/carmcapriotto Follow on Facebook:https://www.facebook.com/RemarkableResultsRadioPodcast/ Follow on LinkedIn:https://www.linkedin.com/in/carmcapriotto/ Follow on Instagram:https://www.instagram.com/remarkableresultsradiopodcast/ Join Our Virtual Toastmasters Club:https://remarkableresults.biz/toastmasters Join Our Private Facebook Community:https://www.facebook.com/groups/1734687266778976 Join our Insider List:https://remarkableresults.biz/insider All books mentioned on our podcasts:https://remarkableresults.biz/books Our Classroom page for personal or team learning:https://remarkableresults.biz/classroom Special episode collections:https://remarkableresults.biz/collections Buy Me a Coffee:https://www.buymeacoffee.com/carm
      The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcastwith Carm Capriotto:Facilitating Wisdom Through Story Telling and Open Discussion.https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z:From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life.https://mattfanslow.captivate.fm/ Business by the Numbers: Understand the Numbers of Your Business with CPA Hunt Demarest.https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level.https://autorepairmarketing.captivate.fm/ The Weekly Blitz: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching.https://chriscotton.captivate.fm/ Speak Up! Effective Communication: Develop Interpersonal and Professional Communication Skills with Craig O'Neill.https://craigoneill.captivate.fm
                                               Click to go to the Podcast on Remarkable Results Radio
    • By HarrytheCarGeek
      A customer that is a Realtor mentioned to me that he is having success using a program called https://calltools.com/ for outbound call marketing.
      I was thinking about doing something like this for this Spring season, has anyone here used an outbound call system of marketing? I have a list of over 80,000 customers and I was thinking it would be a good time to see what results it may bring.
    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.



  • Our Sponsors

×
×
  • Create New...