Story by: The Executive Automive Society
It should come as no shock to anyone that the automotive repair and aftermarket landscape is changing. If you don’t feel dizzy from the turn around you simply haven’t been paying attention. Originally it was simple enough to keep up with new aftermarket technology, but now it seems like we have to keep ahead of a new type of vehicle as well as all the new technology associated with it as well as the new thinking of, is there demand for that product! Add in the conundrum the aftermath of a pandemic and we have a recipe that would drive any shop foreman to the brink of insanity. So what should you focus on and why? Let’s discuss below and point out what you should be thinking about when hiring your next technician. Get ready to think outside the box.
The Changing Landscape
It is pretty simple. Electric and hybrid tech is here and you should be investing in training to understand it. If not, you should be considering hiring employees that have history in it. Brands like Toyota have been doing hybrids for years with vehicles like the Prius and if you’re looking to be in demand having history in this area will be a bonus. If you have experience with electric specific, even more so. Soon the demand for changing a battery, which makes up 60% or more of an electric vehicle, will be paramount as these older batteries from cars like the Leaf and Tesla begin to reach the end of their life. We’ve seen costs from dealers as high as $20,000 even though the replacement batteries can be found in the $5,000 range. Refurbished batteries may be an option as well. Repair shops that invest in this niche technology may find they are in demand if they can pass on cost savings to the consumer. Hydrogen and synthetic fuel technologies are relatively new, so even though you should understand that they’re on the horizon, we’ll understand if you put them on the back burner, but that brings us to our next topi.
What Is Old Is New
If you haven’t heard, many states are trying to ban internal combustion engines by 2035. California and Massachusetts are assured, but if may not matter who does it as if just one state does it automotive manufacturers that can’t afford to design two separate cars for each state are going all in on electric and they need to be there by 2025 to keep up with other countries. That means that those favorite cars like the Camaro are going the way of the Dodo as manufacturers can’t afford to continue to make them. If you can’t upgrade to a newer model many of these owners will now head towards their local shops to keep them up to snuff. From collectors to hobbyists, the line out the door to shops able to work on these cars will be long. Replacement engines, restoring rust, the demand for work is about to increase exponentially from year to year. In fact, it’s already started. Brands like Porsche see the demand, which is why they’ve begun work on options like synthetic fuel, so even if gas is banned they can support these old cars. In some places it’s actually easier to acquire parts for older cars than it is for new cars. Having an option to machine parts, create parts, expand your options will not only be huge it’ll be necessary to survive. Which bring us to the next point.
Diversify Your Store Front
In the ‘80s and ‘90s a typical repair facility usually focused on one model, one type of vehicle, or one style of repair. With the advent of social media and review websites trust has been huge for consumer confidence. The added bonus is that customers that trust you want more from you. Easy additions to a shop is alignments, brake jobs, and even exhaust work started to flourish along with the standard oil change to drum up more work. Now the demand is even higher for other options. Detailing and automotive protection has become huge. Starting with wraps and clear coats to ceramic coatings there’s a million options that need to be renewed from year to year. Few places have started to introduce an upkeep pattern for these ever evolving systems so adding a section to your shop has a ton of space for an innovative group to lead the charge.
That’s just the tip of the iceberg. All those old cars are going to need storage. New cars need charging and fuel options, can you install them? Have you thought about mobile installations? How do sound systems work with electric cars and hybrids! This is just a few of the things you need to ask what would be a good fit for what you do and if not, can you find someone that can?
Fighting the Lazy Pandemic
Everyone that is reading this section is probably filled with loathing to think about it. We feel your pain. From a stack of resumes that don’t return calls to people that are just trying their hand at turning wrenches that will last a couple of weeks, if that, hiring can be the worst part of the job, but you can fight it. For many of us the best medicine is simply, pony up the cash. If you pay people way less than they’re worth you’re not going to get the staff that you deserve. If they’re making more pushing burgers at the local fast food restaurant you’ll need to step up your game. Yes, that may mean passing on the cost to the customer and you may think that will cost you customers, but it will cost you more if you can’t fill the position with someone better than a lube tech that will leave when someone else with a bigger pay out come calling. This is also a good place to make friends with other shops or people opening shops. Passing around employees is as old as time and is just a way of life in the dealership life. People who want to work hard will usually work from place to place. The journeyman mechanic is still a viable concept so be aware of it. Most importantly, invest in a hiring website. Places like Craiglist and Facebook are places of the past. LinkedIn is a great way to waste money as your potential audience isn’t there. Use a website that’s specific to repair techs and potential businesses like http://WWW.MECHANICCAREERSONLINE.COM . This a great area to get an idea of working with others to expand your business acumen. Can’t offer it yourself, you can find someone who can and collaborate to make a bigger and better store front.
Conclusion
Just like real estate, cars about to be the next big thing. Investors, collectors and garage queens, it’s all about to be new again like it’s the ‘80s, but worse it is already becoming people who have had no history in the field and they’ll need you to make the right choices. They’ll need you to step up and make sure that consumer confidence you worked so hard for stays at the peak of their mind and if you don’t you might as well hand the keys to the next big chain to take it from you.
It’s your choice.
