The tech shortage debate

[robc]

Reading the automotive news today and againa another story about recruiting technicians. I just thought I'd pour out my gut feelings and see what discussions ensue. My thoughts are -

1. Tech shortage is a regional (at best) or even specific to some dealerships problem.

For instance, right now if you had to choose, would you want to be a Ford tech or a Mercedes tech. I can imagine the Ford store might struggle to find help and the MB store not so much.

Plus, and I don't know about you, but the shops I've visited and talked to aren't exactly turning away work right now. Moreover, if they were they could develop into the more profitable business instead of taking it all in.

2. The reported numbers don't add up.
They always say something like dealers will need 35,000 new tech people per year for the next decade. That's nearly two new hires per store. Sure retirements and the like happen, and we always have new ones coming in, but that is replacements and that has always happened. (Many of the stats always say "new" employees, not "replacement" employees but that could be semantics.)

Think about 1994 - have you hired 20 new technicians since then? Do you think every store in the country did or could?

3. Why do we always insist on saying top master techs earn $70-$100K per year. Yes I've met techs making $100K - two or three. But I've met a ton of them making $50K too, which really seems more the average for a master tech with $35K being the spot that is a reasonable lube-to-semimaster average.

4. If it is really such a good job why isn't every service manager, sales manager, general manager and dealer putting their sons and daughters into vocational schools?

Anybody see things drastically different?


------------------
** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[jdaniel]

A couple of thoughts-

Yes, some regions, dealers and makes have
bigger problems than others.

Reports like this tend to ignore the aftermarket/independent shops, which really skews the numbers.

Cars aren't what the used to be, tinkering with your car as a teenager now isn't what it used to be- fouling the first step towards the career path for many.

Another first step, the local service station, is gone, too. The oil companies would rather have franchises that sell coffee than ones that fix cars.

Kids with curiosity and diagnostic skills are joining the ranks of the IT world- similar challenges and rewards, but with more prestige, cleaner and healthier work environments, and better pay and benefit packages. (I know about this- 20 years ago I was a tech, ASE certified Master Auto and Heavy Truck; now I carry Microsoft and Cisco certifications instead).

And no, my son has no interest in turning wrenches for a living- he's working on an IT degree.

Jack

[DPINHEIRO]

IN RESPONSE TO THIS ISSUE.WE ARE LOCATED IN HAWAII.PROBABLY THE MOST DIVERSE MARKET IN THE U.S. FINDING TECHNICIANS THAT ARE QUALIFIED HERE IS ESPECIALLY CHALLENGING.RECRUITING FROM THE MAINLAND IS CHALLENGING AS WELL.
AS FOR YOUR STATEMENT ABOUT TOP TECH PAY. IN MOST METRO AREAS OF THE COUNTRY,100K PER YEAR IS NOT OUT OF THE NORM.I WAS A G.M. MASTER TECH FOR 20 YEARS UP UNTIL LAST YEAR.TRAINING AND VOCATIONAL SCHOOLS ARE NOT ALWAYS THE ANSWER.WITHOUT THE APPTITUDE,TRAINING DOES NOT WORK.I WISH I HAD THE ANSWER.I DO NOT BELEIVE THERE IS A TECH SHORTAGE.ONLY A QUALIFIED TECH SHORTAGE.
FOR THE MOST PART,IF A TECH IS GOOD,HE IS EMPLOYED AND THAT EMPLOYER WILL DO WHAT IT TAKES TO RETAIN HIM OR HER.

[robc]

But I am going to draw a line between not out of norm and a bonafide average or real obtainable goal for everyone, no matter where you live. Yes you can make a ton of money in an area say like San Francisco, but that vast, vast, vast majority of techs don't live there or make anywhere near that. Would I be surprised for a tech making $100K? No. Is it uncommon? Yes, in most parts of the country.

I also do the math a bit. $100K is $1925 a week, at 60 hours that $32 per hour which means that shop should be in the $125 range to be profitable. I am in the metro New York City area, and most tech around here are in the $20-$25 per hour range. Again, if they are some franchises where techs might be able to turn 60-75 hours each and every week (in a 40 hour week), but not everyone.



------------------
** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[dodgeboy]

AS A SERVICE MANAGER IN UPSTATE NY, (AND I MEAN WAY UPSTATE) THE PROBLEM WITH FINDING QUALIFIED TECHS IS NOT AS HARD AS KEEPING THEM ONCE YOU HAVE THEM. THERE IS A SHORTAGE, BUT IF YOU WORK WITH YOUR LOCAL VOCATIONAL SCHOOLS AND EVEN YOUR HIGH SCHOOLS, YOU CAN GET A JUMP START ON THESE KIDS. I TOOK TWO KIDS THAT INTERNED WITH ME THRU THE LOCAL BOCES. AFTER HIGH SCHOOL I SPONSERED BOTH OF THEM IN THE CHRYSLER CAP PROGRAM AND NOW I HAVE THEM AS FULL TIME TECHS. THEY BOTH HAVE WORKED OUT GREAT, VERY SMART KIDS WITH A DESIRE TO DO THIS JOB. NOT ALL OF THEM ARE LIKE THIS, I SUPPOSE I GOT LUCKY BECAUSE I'VE YET TO FIND ANYMORE LIKE THIS. NOW, THE PROBLEM WITH RETAINING TECHS IS ANOTHER ISSUE, I HAVE HAD MORE TECHS LEAVE TO GO TO THE INDEPENDANTS FOR LESS MONEY BECAUSE THEY WERE TIRED OF THE WARRANTY THIEVES AT CHRYSLER. EVERY YEAR NEW MODELS COME OUT BUT THE LABOR TIMES DON'T CHANGE OR THEY DECREASE. TECHS ARE GETTING SICK OF THE BULLS*** THAT THE FACTORY TIMES ARE DICTATING AND I DON'T BLAME THEM. I COULD SIT IN MY OFFICE ALL DAY LONG AND FILE LABOR TIME STUDY COMPLAINTS TO CHRYLSER, BUT VERY FEW ARE EVER RESEARCHED. MY TOP TECH MADE 60K LAST YEAR. MY CAP STUDENTS MADE 26K EACH. (1st YEAR) I WOULD NEVER WANT MY KIDS TO BE IN THIS BUSINESS, NOT AS A TECH OR ANY OTHER POSITION. I OFTEN ASK MYSELF WHY I CONTINUE TO DO IT! BUT THATS ANOTHER POST.

[This message has been edited by dodgeboy (edited 01-27-2004).]

[DPINHEIRO]

TOP PAY HERE IN HAWAII IS AROUND 75K PER YEAR.FAR BELOW OUR COST OF LIVING.
ALTHOUGH I CAME FROM SOUTHERN CALIFORNIA,THE DEALER I WAS AT. THE AVERAGE TECHNICIAN PAY PER FLAT RATE HOUR WAS AROUND 25-26 PER HOUR.THE TOP 25% OF THE SHOP WAS NEAR 100K WITH A COUPLE WELL OVER THAT.REMEMBER THAT TAKES INTO ACCOUNT OVERTIME PAY(CALIFORNIA) AND ALOT OF TIME SPENT AT WORK.WE WERE ABLE TO FLAG AROUND 125+ HOURS PER WEEK.OTHER TECHS AT OTHER DEALERS I KNOW ARE AROUND THE SAME.
AS FAR AS WARRANTY THIEFS,I ONLY KNOW G.M.
AND YOU ARE RIGHT,THEY CONSISTANTLY TAKE AWAY TIME FROM THE TIME GUIDES.TO ME, THAT JUST RAISES THE BAR IN THE GAME.AND UNFORTUNATELY IT IS JUST THAT SOME OF THE TIME.A GAME! BUT IF YOU ARE TO SUCCEED YOU HAVE TO PLAY BY THEIR RULES.THE TECH WITH A BRAIN LIKE A SPONGE WILL ALWAYS SUCCEED.IT'S NOT JUST ABOUT APPTITUDE,BUT ALSO ABOUT PERCERVERENCE.