Executive Interview

Jan. 1, 2020
MA: Most agree that the tech shortage that's talked about is really a shortage of qualified techs. But if there's a tech shortage of any kind, how do you explain the fact that consumers seem to be able to get their cars repaired and/or maintained wit

Ron Pyle President of the Automotive Service Association (ASA)

MA: Most agree that the tech shortage that's talked about is really a shortage of qualified techs. But if there's a tech shortage of any kind, how do you explain the fact that consumers seem to be able to get their cars repaired and/or maintained with little effort?

RP: In my opinion, there are several factors at play. We know that there is a great deal of deferred maintenance and repair, some of which is simply driven by neglect or economics. What we are also experiencing is the byproduct of better-quality vehicles and longer manufacturer-recommended service intervals. In addition, there is some overcapacity in the market. The experts all seem to agree that the number of bays — independent and dealer alike — will continue to shrink, at least for the near term. However, it is clear that the skills necessary to diagnose and repair modern vehicles are increasing in demand, and the opportunities for well-trained and qualified techs will continue to grow.

MA: What's your advice to your members in balancing the need for training and operating their shops at the same time?

RP: It is quite simply a choice. Those that "can't find the time" will most likely not be able to continue to survive in the increasingly more complex auto repair environment to come. There are any number of management and technical training resources available, and much of it will come directly to your doorstep. The gap between those who choose to invest and compete and those who don't will continue to widen.

MA: What are the absolute most important (but reasonable) things that shops need from distributors today to run profitable businesses? How about from manufacturers?

RP: The needs haven't changed much; distributors are expected to provide broad and deep inventory availability, OE-equivalent quality parts (or better), expedited delivery and competitive pricing. However, as any distributor can attest, earning shops' business has become increasingly more difficult. Parts proliferation, competitive pricing pressure and increased operational costs squeeze the bottom line. The difference between the better operators and the rest of the pack comes down to execution. Most shop owners I speak with agree that the suppliers that differentiate themselves on service usually get the bulk of the business. Manufacturers are expected to supply OE-equivalent quality replacement parts. There is a great deal of confusion among shops about what is actually in the box. Those manufacturers (and distributors) who have a product strategy that is easy to understand (and therefore easy to explain to the customer) have an advantage over their competition. Those manufacturers who stand behind their parts with strong labor and warranty coverage are also likely to be rewarded with purchase loyalty.

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