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Will we ever solve the technician shortage problem?


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I also believe the lack of quality graduates at least in my area are horrendous. Most of the top guys will opt to go the dealership route as it is seen that there is a lot more opportunity in the dealer network. The graduates that have come through my doors and also the ones I have interviewed have been a huge let down.

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I had a apprentice for approx 2-3 months. He was with us while he was in school and he showed a lack of motivation to learn and show what he could do. He even stopped showing up at a certain point. The months after he would visit us again asking for a second chance. Persistent is what I would call him. He eventually got into BMW Step program on his own however for some reason (he tells us he had a problem with his license at the time) they booted him. Again he was persistent asked for an opportunity. I finally caved and gave him one about a year after. Very hard worker but wow.... absolutely NO talent. He was horrible at everything and did not show APTITUDE. What was also very misleading was he graduated with a 3.5-3.7 GPA one of the best in his class. He was absolutely attrocious.

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Even as a shop owner, I have discouraged family members from going into the automotive field. As a tech the pay is "ok". Not great, techs don't get rich, and often are looking for an exit by their mid 30s. It is one of the most expensive trades to get into with the cost of tools and equipment.

 

You can make $40k sitting at an air conditioned bank anywhere in the United States. $40k in the auto world is often back breaking work. In Ohio the shops are cold in the winter and hot and humid in the summer. You have to literally be a jack of all trades and a master of all to make it. Electronics tech, plumber, welder, fabricator, a mechanic, and lastly a student to make it 30 years in the field.

 

In my area the best dealership techs are lucky to hit $60k. $60k is great money in this area, but you can make it a lot easier in other fields. Unfortunately I would say the average tech doesn't even gross $35,000 which is not even $17/hr at 40 hours a week.

 

Things need to change. I hear fellow shop owners willing to pay service writers $50-80k a year, but they look for ways to underpay their tech making $30k.

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Although I can't begin to deny that finding the right employees to handle our controlled growth has been one of the most challenging aspects in the execution of our business& marketing plan, I found the following information while reading to keep up with industry data available to us. Happy reading!

 

According to the Small Business Market Research Report from SBDCNet:

Auto Repair Professionals: Field Report 2010

Job Outlook
Employment of automotive service technicians and mechanics is expected to grow 17 percent from 2010 to 2020, about as fast as the average for all occupations. As the number of vehicles in use continues to grow, more entry-level service technicians will be needed to do basic maintenance and repair, such as brake pad replacements and oil changes. The increasing lifespan of late-model cars and light trucks will further increase demand for qualified workers. However, continuing consolidation in the automotive industry may lessen the need for new mechanics.

 

Job Prospects
Job opportunities for qualified applicants should be very good as some employers report difficulty finding workers with the right skills and education. Jobseekers who have completed formal postsecondary training programs—especially candidates with training in advanced automotive technology, such as hybrid fuel or computer systems—should enjoy the best job prospects. Those without formal automotive training are likely to face strong competition for entry-level jobs. The majority of job openings will be in automobile dealerships and independent repair shops, where most service technicians currently work.

 

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Edited by stowintegrity
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I believe the problem is 2 fold. Most youth don't want to get their hands dirty. They have been told since the third grade to go to college and get a "clean" job that pays 100K a year. So they expect that from day one. Secondly this trade does not have a huge return on investment from a tech view. Cost of tools compared to earnings in the beginning will discourage many, A person has to have a true love of cars to pursue this trade and I don't see that in the youth. Not like it was when I was a kid.

More so, like Joe said, there is a huge lack of "tradesmen" in this country. A friend of mine in Ohio complains constantly of not being able to hire welders at his machine shop. My brother tells me they cant find good help at the ag company where he works. He also drives semi in the weekends for a friend of ours because they cant find enough truck drivers. Now don't get me wrong they all have plenty of applicants. But when these folks find out what is expected of them at the interviews they never return.

So very true Jeff, (and Joe...and everyone else)

My son, who is a brilliant computer wiz has watched the ups and downs of the trade and all the scrapes and scars I've collected over the years of repairing cars. I've never encouraged him to get into the field or discourage it either. I've even offered him a summer job at the shop, but working with dad is not in his nature. LOL (I don't like working with myself sometimes either) But, to add to the comments already posted about the quality of techs coming out of tech schools, yes... there are a few good ones, but hundreds of wannabes that shouldn't be left alone with a torque wrench.

 

I believe today's cars no longer have that "tinkerer" aspect to the beginning or novice wrench head. It's all wires and computers, although there are still timing chains, head gaskets, transmission svc. etc... It's just not the same as it was when I took my first carb. apart. We, as technicians and shop owners have to keep in mind that each new recruit is someone we either mold into a tech or tell them to go back to the fast food line. I feel you either got "it" or you don't. Ask any tech school teacher and they'll tell you the same. As one instructor told me, "It's hard to teach them about a CVT transmission when they don't understand a basic vacuum modulated transmission. They can only teach so much and time in school isn't near enough to go through every aspect of modern auto repair.

 

There's always going to be a shortage, but the best of the best will always shine through.

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Even as a shop owner, I have discouraged family members from going into the automotive field. As a tech the pay is "ok". Not great, techs don't get rich, and often are looking for an exit by their mid 30s. It is one of the most expensive trades to get into with the cost of tools and equipment.

 

You can make $40k sitting at an air conditioned bank anywhere in the United States. $40k in the auto world is often back breaking work. In Ohio the shops are cold in the winter and hot and humid in the summer. You have to literally be a jack of all trades and a master of all to make it. Electronics tech, plumber, welder, fabricator, a mechanic, and lastly a student to make it 30 years in the field.

 

In my area the best dealership techs are lucky to hit $60k. $60k is great money in this area, but you can make it a lot easier in other fields. Unfortunately I would say the average tech doesn't even gross $35,000 which is not even $17/hr at 40 hours a week.

 

Things need to change. I hear fellow shop owners willing to pay service writers $50-80k a year, but they look for ways to underpay their tech making $30k.

 

Every time I hear you folks from the US talk about wages, they make me shudder.

I know the cost of living is about 10% higher here in Canada, but the numbers stated here are terrible.

How can any shop owner dream of attracting any kind of top talent with wages in the $17-21/hr range?

Look at any other professional trade in your area: electrician, plumber, bricklayer, pipefitter, power lineman etc.

I GUARANTEE they are paying their guys MUCH more then $17-21/hr, probably $28-32+/hr. How can you compete with that?

Plus, you said it yourself that tools cost so much in this trade.

So how can a shop owner expect to attract and retain top techs by paying them far less, when they have MORE expenses and ongoing training?

 

Where I'm from, you're hard pressed to find a shop rate lower then $100, which translates to tech wages around $30-35+/hr.

This is comparable to most other trades which pay around the mid $30's.

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My son is an electrician by trade. He has 15 years plus experience. Owns all his own tools and some that he don't need to but makes the job easier. The best he has been able to pull in wages in the last 5 years is 16.50 an hour.

Now with that said I understand the companies overhead. But the wiring, panels, etc have remained the same over the time he has been in the trade, no huge tech advances like we see in this trade. The company has a warehouse but they don't carry a huge inventory. Their labor is billed in excess of 100 an hour. Pretty much the same for the plumbers and a/c guys I know.

Now here in lies the problem. They are REQUIRED TO BE LICENSED BY THE STATE. That gives the public the perception of professionalism. We on the other hand are not required to have that same licensing. The public, for the most part, still thinks SUM GUY (there he is again) can just go down to the local hardware store, buy a box of tools, get the cheap parts at xyz, and call themselves a mekanik.

Now none of this relates to how you should pay a tech but it does cause the general public to question WHAT WE CAN CHARGE which in turn relates to pay. I would love to be able to charge 120 an hour which is what many electricians, a/c specialist and plumbers charge, but I fear that if I did you would see a tool sale here within a year or less.

That "Sum Guy" he's the real problem with those tools and cheap parts. I agree, licence whether state, county, or fed. would make a difference. The only thing is, once that happened "Sum Guy" without a license would probably still be doing it cheaper.

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  • Have you checked out Joe's Latest Blog?

         3 comments
      Got your attention? Good. The truth is, there is no such thing as the perfect technician pay plan. There are countless ways to create any pay plan. I’ve heard all the claims and opinions, and to be honest, it’s getting a little frustrating. Claims that an hourly paid pay plan cannot motivate. That flat rate is the only way to truly get the most production from your technicians. And then there’s the hybrid performance-based pay plan that many claim is the best.
      At a recent industry event, a shop owner from the Midwest boasted about his flat-rate techs and insisted that this pay plan should be adopted by all shops across the country. When I informed him that in states like New York, you cannot pay flat-rate, he was shocked. “Then how do you motivate your techs” he asked me.
      I remember the day in 1986 when I hired the best technician who ever worked for me in my 41 years as an automotive shop owner. We’ll call him Hal. When Hal reviewed my pay plan for him, and the incentive bonus document, he stared at it for a minute, looked up, and said, “Joe, this looks good, but here’s what I want.” He then wrote on top of the document the weekly salary he wanted. It was a BIG number. He went on to say, “Joe, I need to take home a certain amount of money. I have a home, a wife, two kids, and my Harly Davidson. I will work hard and produce for you. I don’t need an incentive bonus to do my work.” And he did, for the next 30 years, until the day he retired.
      Everyone is entitled to their opinion. So, here’s mine. Money is a motivator, but not the only motivator, and not the best motivator either. We have all heard this scenario, “She quit ABC Auto Center, to get a job at XYZ Auto Repair, and she’s making less money now at XYZ!” We all know that people don’t leave companies, they leave the people they work for or work with.
      With all this said, I do believe that an incentive-based pay plan can work. However, I also believe that a technician must be paid a very good base wage that is commensurate with their ability, experience, and certifications. I also believe that in addition to money, there needs to be a great benefits package. But the icing on the cake in any pay plan is the culture, mission, and vision of the company, which takes strong leadership. And let’s not forget that motivation also comes from praise, recognition, respect, and when technicians know that their work matters.
      Rather than looking for that elusive perfect pay plan, sit down with your technician. Find out what motivates them. What their goals are. Why do they get out of bed in the morning? When you tie their goals with your goals, you will have one powerful pay plan.
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