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29 minutes ago, DUFRESNES said:

Hiring employees has become brutal..    I have a B tech stole away for a guarantee of $35.00 not depending on work.  Also A tech being promising $50 guarantee. What do  you guys think?

Indeed it is brutal.   I'm swinging hard for good candidates.   I was looking for an A Tech and one came in that we liked.    We hired him at $130K.  My other A tech is over $50/hr too.  We're in the Dallas area, with an overall medium cost of living, so these guys are doing well.  They are our revenue producers, so we need them.   The opportunity cost of going without someone for 2 months is higher than paying someone more.   I have an offer out to a B tech for $30/hr + $7/flag hour.  He should make $35 or more.   My previous A tech quit and says he's going to buy, fix and sell cars from his house.  My B tech moved to NC to be with his family.    So, hiring became critical all of a sudden.

I just raised my labor rate to $170/hr (from $150/hr), but I may need to bump it again soon.   My main focus for improvement this year is correctly billing for labor hours.   We are slowly getting better, but still not great.   

We're definitely going to see a downturn in the economy.   With the rising prices of rent, groceries, gas and everything, it's tapping people out.    I don't know how it will play out, but we'll likely see more cars get fixed than traded in.

  • Like 1
Posted

Long time no see! I wish everyone a smooth and successful year in 2023!
As a manufacturer of replacement switches, I also want to share my thoughts on this topic.
From my perspective, 2023 is a challenging year for both the manufacturing and service industries. The shortage of labor caused by the COVID-19 pandemic, as well as the escalating tensions between the United States and China and the war between Ukraine and Russia, have directly caused a rise in costs by impacting the supply chain. The downturn of the stock and housing markets has also indirectly led to a reduction in consumer spending.
As Asia is currently the main manufacturing center, we are facing a severe round of layoffs, with the exception of Vietnam and India which have benefited from supply chain shift.
Our factory is facing a situation where customer orders are expected to decrease by 20%, and our production capacity has already been reduced by 40% in 2022. I feel that, as an Asian manufacturing center, we are facing a severe round of layoffs. I also have the idea of moving the factory to Mexico.
Anyway, we have to move forward bravely in the future. This year may be a difficult one, but let's cheer up together!
And, since a large part of our products are classic car parts, if you have spare time, fix up an old car! Think about the road trips of the past, and make your classic car great again!
I am currently studying AI-related applications, this article is basically translated by openai, and the picture below is generated by Midjourney by inputting text.
image.png.2e2de205f5d7846e596d0d1b70ea643d.png

  • Like 1
Posted
On 1/12/2023 at 9:58 PM, Joe Marconi said:

And sad to admit I worked on those cars

Bah-humbug.  Those cars were great money makers for your shop, but maybe before you truly figured out that 4-letter word:  Profit.   We all work on piles of junk from time to time.  Like that hunk-o-junk in my shop right now:  2015 Range Rover with a blown head-gasket.  Customer says that we blew her head gasket, not here driving it while overheating!  LOL   Besides, all the folks in that picture are happy with their cars.  Now, don't call their babies ugly!  😁

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  • Have you checked out Joe's Latest Blog?

         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.
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