Unless you’ve been living under a rock, the technician shortage is the hottest topic and challenge in our industry. My guest Cecil Bullard from The Institute, has a plan to solve the technician shortage. It involves a $20 increase in your labor rate and how that money gets distributed. Sounds too good to be true? Good!
Cecil Bullard, President of the Institute for Automotive Business Excellence
. Listen to Cecil’s previous episodes HERE
Key Talking Points From Cecil's White Paper
- 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) do 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 amount 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.
- The Institute Summit
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