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Bad Economy is Good Business for Auto Repair Industry

Alex

By Alex
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Alex

Alex

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Posted

Bad Economy is Good Business for Auto Repair Industry

 

October 7th, 2008 @ 10:04pm

By Sarah Dallof

 

The shaky economy is prompting many to cut back on spending, but one industry is reporting a spike in business.

 

Auto-repair shops across the country say business is up. You may not be able to afford a new car right now, but you can't afford not to keep it running.

 

Dennis Roennebeck At Master Tech Automotive, the repair jobs are coming in faster than they're going out. "The last couple weeks have been very busy," owner Dennis Roennebeck said.

 

It's a big change from just a few months ago when gas prices spiked and travel declined. Now business in great, and not just in Utah.

 

"Basically the exact same thing all the way across the country," Roennebeck said.

 

Technicians say the majority of the repairs aren't minor. They require several days of work and can cost thousands of dollars. "We're seeing a lot of cooling problems, overheating problems, major engine damage," Roennebeck explained.

 

The repairs fall into two categories: problems people didn't want to pay to fix months ago that have now gotten huge, and maintenance -- people who don't want to buy new right now and are taking all precautions to keep their older cars running.

 

"A lot of people aren't sure about their jobs, what the market's doing right now," Roennebeck said.

 

College student Mason Nichols said, "Stuff always happens with cars, especially when they get old like mine."

 

Nichols was scouting out a good price for new tires at the auto-repair shop. With a full schedule of school and work, keeping his car going for a few more years is critical. "It's cheaper just to keep it going; little repairs every year instead of buying a new car," he said.

 

Roennebeck estimates if you take care of your car -- everything from changing the oil to replacing major systems when needed -- you'll actually save hundreds of thousands of dollars over the years.

 

http://www.ksl.com/?nid=148&sid=4468240

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted

I have to believe that there are more than a few shop owners who read that story and wonder why they have been left out. I communicate with quite a few shops from coast to coast and there are precious few who are as busy as described. Our shop did have a decent September compared to 2007 (+28%), however October has softened (-22%).

 

I have never heard from so many shops who have reduced their staff or are preparing to do so. I have never seen so many shops with drastically reduced sales, mainly in the last 2-3 weeks.

 

I do believe some shops will do very well in the sinking economy, but that will likely take some time to materialize. How these shops operate will be significantly different than in the past.

 

We are working to get our October back up and I believe that we can.

 

I also suspect that more than a few shops are sinking fast and are unlikely to be able to recover.

Tom Ham AutoMN.info Contributor

Tom Ham AutoMN.info

Posted
Posted
We have not had let anyone go yet, but we have cut down on hours and eliminated OT. This will be a test for all of us. Although it's hard, I think now is the time to maintain your advertising and find new ways to market your business. Let's maintain our business and customer base and be ready for when the economy does turns around. If we don't do this we may be chasing the market instead of cashing in when times are good again.

 

New ways to market at LOW cost is a big key.

 

Also, we should make our shops very adjustable so we can make changes quickly as required. Contingency plans should be in place now.

 

Unfortunately, it seems to me that we still in the pre-game show phase. The game has yet to begin and when it does it won't be pretty.

 

A quick downturn with an upswing soon would be nice, however the fed is working to prevent that due to their ignorance and arrogance. When things dropped in 1929 it took over 20 years to recover. But today the fundamentals of the economy are far worse than they were back then.

 

The US may be about to change significantly from the one we grew up in.

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      The Technician Shortage Is Our Fault, And It's Time We Own It
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      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? 
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      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?
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      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
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      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.
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