Schools providing more collision technicians

"The 2007 survey showed a sharp increase in the percentage of new technicians hired from a career or technical school or college," explains Ron Ray, I-CAR Education Foundation executive director. "Over 47 percent of entry-level technicians hired in the previous 12 months had pre-employment training, a significant benefit to businesses in the industry. However, the percentage of technicians who left the trade has returned to the high end of its historic range at just over 11 percent, creating an increased demand for entry-level technicians since the last survey in 2004."

The survey, which is conducted every three years, is based on a random sample of more than 4,000 collision repair facilities from all 50 states. Valid responses were received from 8 percent of the sample and represent a cross-section of the industry, according to the foundation. Allstate Insurance sponsored the survey.

The total number of shops in the industry continues to decline. According to the report, there are 46,910 collision repair shops in the United States, down from 48,730 in 2004, and 53,505 in 1995. The average number of years in business increased to 27.5 years compared to 25.7 years in 2004. Average number of employees and average square footage also has increased, as the industry shifts toward larger shops.

Although Ray emphasizes that there was a wide distribution in the survey sample, average technician income seems to increase with shop sales volume and frequent training, especially I-CAR classes. Average income for all technicians is $51,312 (a 14.5 percent increase), which is higher than many other skilled trades, such as medical lab technicians, who average $34,550 per year, and electronics technicians who average $43,684 per year.

While salaries are on the rise, benefits packages are shrinking. The number of shops offering benefits such as paid vacations and health insurance actually peaked in 2004, and has since declined.

According to the survey, 86.5 percent of shops offer paid vacations (down from 90.6 percent in 2004), 69.6 percent offer health insurance (down from 71.4 percent), 30.4 percent offer life insurance (down from 31.5 percent), 22.1 percent offer tuition reimbursement (down from 25.4 percent), 39.7 percent offer a retirement program (down from 45.1 percent), and 10.9 percent offer profit sharing (down from 11.3 percent).

"No benefits increased, which is discouraging, but there are still more benefits available than there were 12 years ago," Ray says.

Tech schools provide talent

Turnover in the industry remains high, with 27.5 percent of technicians leaving their jobs in the past 12 months, compared to 24.3 percent in 2004. More than half (58 percent) of technicians have been with their current employer for five years or less.

While some of this movement is within the industry, the survey found an increasing number of technicians leaving the trade altogether, with turnout reaching 11 percent in 2007 (compared to 9 percent in 2004).

To replace them, shops are hiring new entry-level technicians, and an increasing number of them are coming from career or technical school programs. Of the 21,852 new technicians reported entering the industry in the past 12 months, 47.3 percent came from such programs.

"It's encouraging that it appears employers appreciate the knowledge an entry-level employee can potentially bring when they receive pre-employment training, in many cases using the I-CAR curriculum" Ray says.

In turn, collision shops are providing more support for these programs. A majority of respondents said they would be willing to serve on a technical school advisory board (52 percent), but current participation is only 19 percent (up from 17 percent in 2004). Nearly half (47 percent) reported there was no high school program available in their area, while another 43 percent reported no post-secondary program available.

"I'd like to see more shop involvement with schools," Ray says. "It is an important link for the school to have that understanding from the local employers about what skills their students are expected to have."

Survey participants were asked what tasks they expected a technical school program graduate to be able to perform with little supervision. The highest-ranking tasks were R&R bolted parts, prep for paint, dent repairs, final detailing, use of MIG welders, plastic repairs, and R&R welded parts.

"We encourage the schools to ensure that students learn these basic tasks very well," Ray says. "A lot of schools have taken this to heart, and are ensuring that before they graduate, the students practice these things repetitively so that on day-one of their jobs they can be an asset to the shop. "

A four-page summary of the survey can be downloaded for free from the I-CAR Education Foundation Web site at www.ed-foundation.org.