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Tech Shortage: What are you doing to help shape our future?

Mike DelaCruz
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Mike DelaCruz Rookie

Mike DelaCruz

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A topic that I’ve become more and more interested in is the future of our industry, specifically when it comes to Technicians.  I returned from the Spring Leadership Days in Orlando by Auto Care Association with an entirely new outlook, continuously reminding myself:  What can I do to help strengthen our future?

As I scroll through my Facebook feed, reading through various forums and private group comments, I constantly hear about the Technician shortage and have been over the past few years.

Does that raise any concern that we’re still talking about this after several years?  

As I read through the comments in hopes to find solutions, regrettably the majority of the comments are not solutions to the problem.  So, my hope is to find a solution and identify what action I can personally take to help strengthen our future and do my part.  I don’t want to spend anymore time talking about what we already know (tech shortage), and watch our industry reduce to rubble in the years ahead.  Not on my watch… and I know a lot of you are with me!  Days turn into weeks, weeks turn into months and months turn into years.  Let’s not wait!

As I visit shops around the country, which is my favorite thing to do, I notice a common pattern in the workflow.  Nearly 70% of the shops that I have visited in the past year have empty bays.  For example, a shop in the Bay Area I visited recently had 8 bays, but 4 were empty.  They had 2 Technicians, who both told me they’re extremely busy and this has become the “norm” until they hire more Technicians.  

Of course, the owners have “tried everything”, but what does that mean?  Have they really tried “everything”, or are they looking for a band-aid to fix the short-term problem and not thinking about a long-term solution and preparing for the future?  

Shops are busy right now and business is booming for most.  So even though they have the Tech shortage issue on their minds, it’s less of a priority right now because they’re busy!  It reminds me of what one of my favorite industry coaches (and friend) told me one time about “Panic Marketing”. Business slows down, then we expect our marketing company to step up some SEO or Ads and get cars in today, when in reality you have to plan out your marketing 6-months or a year in advance.  

So what do we do when we have empty bays and a Tech shortage?  Many will simply place an Ad on Indeed, cross their fingers and hope for immediate applicants! That quick-fix strategy will never work.  But what will?  

There are shops out there with effective strategies that actually work well.  Look at what they’re doing and get some ideas.  Joe Marconi has some awesome tips on hiring great people.  Having worked directly with Joe, I’ve seen the success firsthand.

But for me personally, I’m more interested in the long-term and getting the “younger generation” interested in our trade.  I think this will help shape our future.  But how do we do this?  Someone once told me, if every shop ran an Apprenticeship program, this would help solve the problem.  

Is that the silver bullet?  If not, what is?  

 

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Transmission Repair Experienced

Transmission Repair

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1 hour ago, Joe Marconi said:

Mike, I agree with you 100%!  You make a great analogy with what happens when business slows down and shop owners go into, as you say, "Panic Marketing." 

It is up to the shop owners to build the workforce of tomorrow. And we do need to get the younger generation interested in this amazing industry.

If half the shops in this great nation of ours started an apprenticeship program, we could solve the tech shortage in a matter of a few short years. 

 

Sadly, I agree with both Mike and Joe about the obvious: the technician shortage.  However, the shortage is not as profound (but it is still there) in the transmission repair industry.  I'm plugged in to my local market and I know of at least 2 transmission builders I could hire in a heartbeat... If I weren't retired.  Optimistically, I look at the other side of the coin.  There was once a time where I was spending a lot of money to market our shop in an effort to keep all the bays full and the ample tech supply busy.  For example, $50K/yr. for Google PPC advertising, and more!

In years gone by I remember having to let a technician go because I couldn't keep him busy due to my poor marketing skills at the time.  Today, there's not near the pressure on shop owners to market their shop because of the technician shortage.  I can't think of one example today where a shop owner has their existing techs standing around in an empty bay waiting for work to come in.  They are all busy.  Granted, now there's empty bays with no techs to fill them.

In the early 2000s, I hooked up with WyoTech, ( https://www.wyotech.edu/programs/ ) a for profit technical college specializing in automotive, collision and diesel.  They were a 500-mile, 8-hour drive from SLC, UT.  They had a class graduate every 90 days.  The school hosted a job fair every 90 days as well.  It was a great source for green techs.  The problem I had back then was too high of expectations.  I should have picked up where the college left off as far as training was concerned, but I didn't know or become aware of that till years later.

Like most, I had unrealistic expectations of the graduating student I hired.  If I had it to do over again, I would have continued with an apprentice program in my own shop to finish training the newly hired students.  But I didn't. 😞  So, my vote is with you guys: an apprenticeship program, but in our own shops.  It's easy for me to say that looking back.  My vote would be to hook up with a post-secondary technical college to get apprenticeship material.  I know of a local transmission shop owner who used to work for me who did exactly that.  Believe it or not, the technical college ended up hiring him as an instructor!  His comment to me was, "It's a hell of a lot easier and a lot less travel than trying become a shop consultant.  Kids believe me and don't have any preconceived notions."  Wow.  What an eye-opener.

Just don't make the same mistake I did and let opportunity pass you by.

 

  • Like 3
Mike DelaCruz Rookie

Mike DelaCruz

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@Transmission Repair thank you for adding so much detail.  I greatly value and appreciate your experience.  You've listed some great takeaways for me and a lot to really think about.  I'm confident with your insight, I will be able to execute on something that will help me do my part. 

  • Like 2
Transmission Repair Experienced

Transmission Repair

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On 6/15/2022 at 12:24 PM, Mike DelaCruz said:

@Transmission Repair thank you for adding so much detail.  I greatly value and appreciate your experience.  You've listed some great takeaways for me and a lot to really think about.  I'm confident with your insight, I will be able to execute on something that will help me do my part. 

I also hired an engineering student from the local university.  Great success, but he was expensive.

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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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