Apprenticeship Programs: Ensuring our Future Workforce

[Joe Marconi]

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[Transmission Repair]

To follow up what Joe is saying, here's NAPA's AutoCare Apprentice Program Handbook.  This handbook codifies NAPA's apprentice program which can be used as a starting point for shops who wish to have their own Apprentice Program.

1-AutoCare-Apprentice-Program-Handbooks (1).pdf

[Transmission Repair]

I just heard a Carm Capriotto webinar with Cecil Bullard as the guest.  I thought he had a great plan to cure the technician shortage.  Here are some of his talking points...

Here's the link to the webinar:  A Plan To Solve The Technician Shortage

Recent surveys and articles in the industry point to the fact that 73% of shops need to hire one or more employees in the next 12 months and that for 85% of those, it would be a technician • As much as 29% of the technicians are over 55 years old, and they are aging out of the industry • Only 15% of our industry is under 35 while 29% is over 55 • Every Automotive Service and Repair Business in North America will move their labor rate up $20 per hour tomorrow. We use $10 of this to increase the pay of every technician and/or mechanic working in our shops immediately.   We make it financially appealing to come into our industry by moving the wages up substantially.  If every shop (or 90% of the shops) did this, it would change our industry for the better dramatically.   We start new technicians that are learning at $25 to $35 an hour or $50K to $70K per year (a real living wage where they can support themselves and buy tools), and we pay veteran A-technicians $45 to $65 per hour or $90K to $130K. We take $5 of the increase and make sure we have a full benefits package.  Medical, vacation, dental, a reasonable number of sick days, a good retirement plan, all national holidays off with pay, including Thanksgiving, Christmas and New Year’s, as well as anything that other professional jobs offer. • We take the other $5 of the increase and join a non-profit organization that will market to the mothers and fathers out there (and potential technicians) and let them know that being a technician in a modern shop is a cool job, is financially viable and every bit as professional as becoming a lawyer, doctor, dentist, programmer or professor. • Lastly, every shop owner books an appointment at a college, auto tech school, or high school and ‘volunteers’ their time to talk to the students, teachers, and administrators about our incredible industry.

[Joe Marconi]

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[Transmission Repair]

 

14 hours ago, Joe Marconi said:

Yes, I listened to it also.  The fact is that if every auto repair shop hired one apprentice, we could solve the tech shortage.  We, the auto aftermarket repair shops have to do this. No one will do it for us.  And I also agree that we need to pay our people better. However, we need to improve the bottom line for repair shops and owners too. 

The transmission repair industry has unique needs in that we are short on experienced transmission rebuilders.  Hiring an apprentice is merely the starting point to a 10-year learning process.  I consider it the equivalent of hiring an apprentice with the goal of ending up with a seasoned ASE Master Auto Technician.  What do you do if you need a seasoned ASE Master Auto Technician NOW?  That's what it's like trying to hire an experienced transmission rebuilder.

Inflation causes everything to go up in price.  Things cost more than ever before.  Therefore, I believe we as shop owners need to pay more than ever before.  A lot of problems can be cured by paying the top wage in any given market area.  The last seasoned transmission builder I hired was back in 2015 and we were offering $104K/yr. just to start!  I could only imagine what a similar offer would be in today's 2023 dollars.  According to the Inflation Calculator, $104K would be $130,230.69 in today's dollars, or $2,504.43/wk. Add to that all the company benefits and the total cost of employment could easily be $200K/yr. or more.  All of these numbers are for the SLC, Utah market.  Other markets could be higher.

There's a lot of advantages to paying more than anybody else.  The first thing that comes to mind is if your employee makes a move to another job, they would be taking a substantial pay cut.  On the other hand, we need to raise our prices to cover increased payroll costs.  A shop simply can't afford to pay top wages without charging top prices.  Charging top prices is not possible without going through top sales and marketing training.  And so, the training cycle continues.

Share your thoughts on paying and charging top dollar.  How would you hire a highly experienced tech?

[Transmission Repair]

On 1/31/2023 at 6:43 AM, Transmission Repair said:

To follow up what Joe is saying, here's NAPA's AutoCare Apprentice Program Handbook.  This handbook codifies NAPA's apprentice program which can be used as a starting point for shops who wish to have their own Apprentice Program.

1-AutoCare-Apprentice-Program-Handbooks (1).pdf 1.45 MB · 5 downloads

I looked but couldn't find a copyright date on this handbook.  While the framework of the apprentice program is really good, the length/compensation of the program could use some serious updating.  The AutoCare Apprentice Program is supposed to last 24 months and I think that's too long.  

Secondly, the pay scale is really outdated.  I suggest plugging in your own numbers.