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[Podcast] Status of the Aftermarket – Journalist Mark Phillips [RR 538]


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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.

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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

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  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
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