LAS VEGAS (Nov. 3, 2005) - Good help is hard to find. At least that's what most people say. In fact, a growing number of people in the automotive repair industry are worried, to say the very least, about the future of the technician workforce.
The U.S. population is growing at a faster rate than any other industrialized nation in the world - faster than even China. By the year 2050, the U.S. Census Bureau projects our population to reach 392 million, a 50 percent increase since 1990. Fertility rates in the United States are the highest since 1971, and immigration contributes more than 1 million new people to the population annually.
That should add up to more workers, right? Unfortunately, the Bureau says, the future age structure of our population will be older than it is now. The median age of the U.S. population in 2000 was 35.5 years, and the agency projects the median age will peak at 39.1 years old in 2035. In 2011, the first members of the Baby Boom era will reach 65; the last of the Boomers will reach 65 in 2029. Essentially, in 2011, Baby Boomers - who will comprise 25 percent of the total population at that time - will begin their exodus from the workforce and will continue doing so for the next 18 years.
Now add in a few more facts: The number of vehicles on U.S. roads continues to increase. The average age of these vehicles is more than nine years old. Automakers continue introducing new technologies and materials into vehicles. Enrollment in technical schools continues to decline, as does the number of programs available. And the job market is expected to grow - from 818,000 openings in 2002 to 919,000 in 2012 for mechanical repair, a 12.4 percent increase; the collision sector is projected to grow from 198,000 openings in 2002 to 225,000 in 2012, a 13.2 percent increase.
The automotive repair industry is, indeed, getting worried.
Great minds think alike For three years, Universal Underwriters Group (UUG) has hosted the Aftermarket Industry Conference, which brings together aftermarket representatives to address a common concern. This year they gathered together an impressive list of participants to confront the growing technician shortage.Opening the session, Mike McHugh, executive vice president for UUG, shared some data from the company's own research: A recent survey of its customers found that only 39 percent of the respondents work with technical schools directly to find job candidates. In addition, 82 percent of respondents do not have an internship program at their facilities, and 86 percent are not aware of scholarships or sponsorship programs designed to attract young people to the industry.
The industry is positioned with a great opportunity, McHugh said. So many jobs are going overseas, but the repair technician is a job that can't be shipped to another country. "This can be a great future for young people," he added.
The group assembled included associations, trainers, mechanical and collision shop owners, and technical education/certification organizations. Each participant had done some homework before the event: Questionnaires were distributed to compile data on technician recruitment, training, scholarship and employee benefit programs employed by the organization or its membership.
As attendees each presented their organizations' programs and data, a pattern emerged indicating that perhaps the repair industry is not suffering from a lack of programs, but instead needs cooperative partnerships to strengthen their collective efforts.
"We have a tremendous capability in existing programs," said Tony Molla, vice president of industry affairs for the National Institute for Automotive Service Excellence (ASE). "We have the pieces; we just don't have a cohesive, organized path."
Attendees also clarified what they believed to be the shortage problem: attracting qualified technicians. "There's not a lack of bodies," said Ron Pyle, president of the Automotive Service Association (ASA). "It's a lack of qualified techs to fill the roles."
Pyle concurred with Molla's assessment regarding partnerships, but added that groups need to work together for success. "Alliances usually mean, 'join mine,' and we need to work past that," he stated. "We have to pull down those barriers."
Three key people to convince "Our first step to overcoming this technician shortage is to find better ways to promote the profession to high school students," said David Willett, eastern division vice president and general manager for UUG. "Kids coming out of high school are really unaware that the automotive aftermarket industry offers rewarding jobs with good benefits."Participants shared their stories and strategies to educate kids about the industry. Chuck Udell, who works with the Automotive Aftermarket Industry Association's (AAIA) Education Committee, told the group that they are building a program that provides educational tools for members when they visit schools, as well as gives them creative ideas on getting to the key individuals.
"There are three people you have to convince: the student, the parent (the mother is key), and the school guidance counselors," Udell said. They offer a CD, "Life in the Fast Lane," that discusses all the employment opportunities in the industry - technician, manufacturing, stores, etc. The CD is available through Barbara Clark at AAIA for $9 a copy.
Steve Louden, owner, Louden MotorCar Services, Dallas, TX, agreed that fighting the parents' perception of techs is the biggest obstacle. He added that shop owners need to make their businesses desirable places to work: "I don't offer the best salaries, but I offer benefits."
Dan Bailey, chief operating officer at CARSTAR, Overland Park, KS, uses his own presentation to educate school administrators and counselors. Bailey told the group he sits on advisory boards at schools, and he encourages franchisees and company store managers to do the same. However, it's not a requirement within his organization.
Molla suggested that we need to bring the message to the appropriate venue to get attention. ASE, he said, gets more "mileage" promoting the industry at sports and racing settings than at academic events. "You need to put the industry in front of the consumer's mind at every chance."
On that note, Peter Clune, general manager and vice president-Western Division of UUG's Automotive Specialty Division, came forward with a proposal from UUG, asking for feedback. The company is launching a technician scholarship/internship program that will partner with all interested aftermarket associations.
"High Octane" will provide $1,000 scholarships to send interns/apprentices to school. The association, Clune emphasized, is free to develop the technician internship program any way they like; associations will set the length of the internship, can choose any school and set the criteria for the training.
In a follow-up interview, Clune told us that UUG plans to meet with all the associations within the next 60 days to present the idea. The want it launched and specific scholarships offered by the end of the first quarter of 2006.
"We [UUG] asked all the associations, 'What scholarship money has the association put aside to recruit new technicians?' " Clune said. UUG found that not one has a scholarship program specifically designed to attract new technicians. "What we're basically doing is giving them a budget - money earmarked to create a program to bring in new people to the industry," he added.
Tying it all together It's apparent the industry needs to take a different recruiting approach. Attendees agreed that they were coming away with a lot of new ideas for their associations and memberships - many of which they planned to institute.McHugh emphasized the need for follow-up and encouraged everyone to stay in contact with each other. "Execution is always key. Everyone has good ideas, but it's important to move them forward."
