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What Does the Shop of the Future Look Like? [THA 308]


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What does the future look like for the automotive industry? Listen to the perspectives of Jennifer Maher, Executive Director of the TechForce Foundation, Derek Kaufman, Managing Partner at Schwartz Advisors, Matt Fanslow, Lead Diagnostician and Shop Manager at Riverside Automotive, and Dustin Brown, Shop Owner of Brown Auto Experts with 3 locations. We have an open discussion about future trends, aftermarket challenges, and electric vehicles.

Jennifer Maher, Executive Director, TechForce Foundation, Jennifer's previous episodes HERE Derek Kaufman, Managing Partner, Schwartz Advisors, President of C3 Network. Listen to Derek’s previous episodes HERE. Matt Fanslow, lead diagnostician and shop manager, Riverside Automotive, Red Wing, MN. Matt’s previous episodes HERE Dustin Brown, Brown Auto Experts, 3 Locations in New Mexico, Albuquerque, Village of Los Ranchos and Rio Rancho. Listen to Dustin’s other episodes HERE

Show Notes:

  • Today's BEV headlines may be "over the top" in terms of the pace of BEV adoption, but the VIO will definitively change over time – we are forecasting the VIO at 7.3% BEV in 2030, 26.5% in 2040 and 51.2% in 2050
  • We know that people are talking about 60 and even 70% reductions in BEV maintenance versus ICE cars, and that may be true – but the true lifetime service of BEVs has more to do with major part failures than it does maintenance. Motors, power modules and other BEV components will fail and the aftermarket will be ready to service them.
  • BEVs will generate new under-car and cooling system service opportunities – they are heavier and have higher torque, so suspensions, half shafts, and steering gear will see more wear than ICE cars. Cooling systems will be much more sophisticated with multi-directional and intelligent valves, PTC and Heat Pump heaters, multiple radiators, and many more fluid connectors.
  • Multi Shop Owner- consistency of service
  • Technology not only makes things more complex, in many cases, but that complexity is usually in the background.  Technology also makes things easier.  Not just vehicle technology itself, but tools and equipment technology.  The technology is here for a 100% automated tire changing system, but it is cost prohibitive for many/most.  It won't remain so, and if it isn't 100% automated, you'll just need someone to take the wheel off and roll it to the machine, the machine will replace the tire, maybe test the TPMS sensor, and then mount the new tire and balance it.  The human will be little more than an assistant.
  • Technology may make vehicles, as it has already done, even more reliable, but also change how we service them.
  • The following are already expected by most but will soon be expected by all due to the cost of repairs. Top Notch Facilities, clean and professional appearance inside and out. Top customer service experience. Professionalism from all areas of the business. Tools, equipment, digital inspections, customer education materials
  • Diversity in the workforce- including more women and the younger generation, puzzle solving
  • Variety of vehicles in the next 30 years
  • New jobs- power stations, power grids, safety on repairs
  • Investors- real estate game (pit stop), autonomous trucks in ‘service center.’
  • Be malleable and willing to adapt

 

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Important Books

Check out today's partners:

 

Shop-Ware: More Time. More Profit. Shop-Ware Shop Management getshopware.com

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Delphi Technologies: Keeping current on the latest vehicle systems and how to repair them is a must for today’s technicians. DelphiAftermarket.com ARN-Website-Banner-July-2022-1200x400-1.

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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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