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[Podcast] RR 446: Privacy, Data Ownership and Cyber-security Threatens the Automotive Aftermarket

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Privacy, Data Ownership and Cyber-security are the issues raised with the legislation and it threatens the whole automotive aftermarket.

Looking for more information on cybersecurity and data ownership?

ASA and the Alliance of Automobile Manufacturers will be hosting a one-day event September. 12, 2019 in Troy, MI. Registration is now open! LEARN MORE AND REGISTER:  https://asashop.org/education-events/technology-telematics-forum/

 

Taking The Hill Website

ASA Web Site

 

Robert L. Redding Jr., ASA Legislative representative –Bob has represented the Automotive Service Association, from their Capitol Hill office, since 1993.  He has received presidential appointments to several Federal Advisory Committees at the United States EPA, DOJ, Department of Labor and the U.S. Department of Transportation.

Bob has represented the Automotive Service Association, from their Capitol Hill office, since 1993.  He has received presidential appointments to several Federal Advisory Committees at the United Sates EPA, DOJ, Department of Labor and the U.S. Department of Transportation. Previous episodes with Bob HERE.

Frank Leutz from Desert Car Care in Chandler, AZ.  Frank has a weekly radio ‘call in show’ called ‘Wrench Nation’. . Frank also does a video feature called ‘Inside the Garage’ where he discusses vehicle failures and cures. Listen to Frank’s previous episodes HERE.

Brin Kline is the owner of Assured Auto Works in Melbourne, FL.  His career in automotive repair spans 17 years with nearly 8 years as an owner.

Brin’s journey to becoming an advocate for improving the automotive repair industry at the national level began when he started to attend conferences and training.  At these events, he rubbed shoulders with amazing people who, recognize the need for a national automotive repair industry step-by-step protocol for entry-level recruitment and training, continuing education events, and conferences, sharing of case studies, and helping businesses grow. Find previous episodes featuring Brin HERE.

Key Talking Points

  • Shop owners must understand that it is time that someone has to pay attention, educate and protect your clients as it relates to ownership and access to their data. Privacy, Data Ownership and Cyber-security.
  • Policy makers don’t understand how data affects repairs
    • We must ensure that our policymakers don’t overreact or reach too far.
    • We need to be careful because once the bill gets signed it will take the next five years for them to revisit it. We will be stuck with that policy
  • Data Access, Think Telematics?
    • One of the pieces not covered in the 12-year right repair service information battle
    • As a shop owner, we hear it but we don’t know what it’s all about 
    • The legislation issues concerning Privacy, Data Ownership and Cyber-security.
  • Cyber-security protections are growing in California
  • A major concern as an industry is overreach and we are collateral damage
  • In an effort to protect consumers, the policymakers go too far.
  • Regarding privacy, there must be some separations
    • 3rd party providers
    • OEM Websites
  • We don’t want anything to interfere with our current business model.
  • The industry must get behind efforts being mounted in Washington
    • Developing coalition, Writing campaign, and Visits to Washington
    • Part of this is also education when the policymakers go home, they must hear from shop owners and understand that access is critical for the consumer and to maintain safe and reliable transportation
  • The previous Administration ordered a guideline for cyber-security which allowed for 50 state laws potentially dealing with our issues which is not workable
  • We need the Federal Government to lay out  guidelines for cyber and privacy
  • Owners with multiple shops will have problems if their shops are located at different states.

California Bill

  • It is about dealing with consumer privacy.
  • A bill passed last summer is going to impact businesses
  • This could happen to different states
  • Michigan tapped into this

Privacy is important

  • Consumers deserve privacy
  • Within the framework of a vehicle, rolling smart technology privacy becomes a huge issue
  • We need to have a reasonable and effective way to handle the motoring fleet
  • Some consumers do not want delicate data on their vehicles shared
  • Insurance companies now have access to some data through 3rd party providers
  • As an aftermarket, we need to be involved, at a reasonable cost, in order to fix these vehicles as we have without compromising our business model.
  • $450 – $800 Billion Dollar Industry regarding 3rd party data monitoring cloud-based

Cyber-security

  • On the root level, protecting your WiFi
  • Having a process as it comes as a security policy
  • OEMs have to provide shop owners a path
  • Everyone is trying to figure out their place as we move forward including new car dealers
  • Privacy piece will drive everything and data access will have to be addressed at some point

Resources:

  • Thanks to Bob, Frank, and Brin for their contribution to the aftermarket’s premier podcast.
  • Link to the ‘BOOKS‘ page highlighting all books discussed in the podcast library HERE. Leaders are readers.
  • Leave me an honest review on iTunes. Your ratings and reviews really help and I read each one of them.

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This episode is brought to you by AAPEX, the Automotive Aftermarket Products Expo. AAPEX represents the $740 billion AAPEX_logo_CMYK_with_tagline-1440x621.jpglobal 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 2019 will take place Tuesday, Nov. 5 through Thursday, Nov. 7, 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 2019. For information, visit aapexshow.com

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's 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.

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