Joe Marconi

It's a safe bet that nearly every auto repair shop is looking to hire an employee, most likely a technician. While I am a big proponent of a plan to recruit constantly, we can never forget about the employees we have right now. Do all you can to create a healthy workplace with high morale. Have a one-on-one with all your employees. Find out what they like about working at your repair shop and perhaps more importantly, what they would like to change. Ask your employees what they would do to improve your company. If you have never done this before, you may get the "deer in the headlights" look, but don't worry, keep asking and in time your employees will be a great resource for you. When people feel appreciated and know that their opinion counts, it helps them from looking over the fence for greener grass. What do you do at your auto repair shop to help retain your employees?

Will the TV ads match up to your demographic profile?

Great point; there isn't just one business model. I think it's important to hear different points of view. Everyone is motivated differently.

Shrinking Repair Outlet Population "Vehicle maintenance is becoming less convenient for Americans. There are fewer outlets repairing cars and light trucks, despite the increasing population and complexity of cars and light trucks on U.S. roads. The number of repair (DIFM) outlets fell by nearly 14,000 over the past five years (2016 to 2021), and future annual reductions are likely." "Nevertheless, not all types of repair outlets suffered losses. Repair Specialists, Foreign Specialists, and Dealers have grown in number, while the four other major types of DIFM outlets have endured thinning ranks. See the all-new 2023 Lang Aftermarket Annual for a ten-year history of the changing number of all major types of auto repair outlets across the U.S." 14,000 Fewer Light Vehicle Repair Outlets At mid-year 2021, there were over 211,700 car and light truck repair outlets in the U.S., down approximately 14,000 from 2016. At the same time, vehicles in operation (VIO) climbed by more than 18 million and grew more complex, increasing the diagnostic and repair challenges faced by repair outlets. Outlet Groups Growing in Number Although the light vehicle repair outlet population fell by approximately 14,000 from 2016 to 2021, not all outlet types have declined. Among the seven major types of car and light truck repair outlets, three increased in number between 2016 and 2021: Repair Specialists, Foreign Specialists, and Vehicle Dealers. These outlets groups grew even during the onslaught of COVID-19. Repair Specialists Focusing on a limited menu of vehicle repair and maintenance, Repair Specialist locations totaled just over 29,600 at mid-year 2021, up several hundred from five years earlier. Repair Specialists are the second largest DIFM outlet group. Foreign Specialists Foreign Specialists concentrate on the repair of foreign nameplate cars and light trucks. They achieved the largest outlet gain over the past five years and the greatest percentage growth in locations. There were just over 19,600 Foreign Specialists nationwide at mid-year 2012, up approximately 700 from five years earlier. Vehicle Dealers Vehicle Dealers recorded a small (less than 0.2%) increase in outlets from 2016 to 2021. This reversed a trend of declining Dealer locations in the years after the Great Recession of 2008. Asian nameplates have been the most successful in expanding their Dealer counts. Outlet Groups Declining in Number Service Stations & Garages, Tire Dealers, Discount Stores/Mass Merchandisers with bays, and Retail Auto Parts Stores with bays all fell in outlet count over the past five years. Service Stations & Garages Service Stations & Garages were battered by a significant population loss from 2016 to 2021, down by approximately 13,000 locations. This represented most of the repair outlets lost over these five years. Nevertheless, Service Stations & Garages remain the most prevalent type of DIM outlet. Tire Stores There were approximately 800 fewer Tire Stores in the U.S. at mid-year 2021 than five years earlier. Small Tire Stores suffered the brunt of this decline as growing competition from large, multi-outlet operations pushed many of them out of the market. Discount Stores/Mass Merchandisers & Auto Parts Stores with Bays The closing of hundreds of Sears Auto Centers nationwide contributed to the decline of Discount Stores/Mass Merchandisers with bays, which has been ongoing since 2011. The falling number of Auto Parts Stores with bays between 2016 and 2021 continued a trend that has been underway for several decades. COVID-19 Impact Most of the DIFM outlet loss between 2016 and 2021 occurred over the past two years (2020 and 2021), reflecting the impact of COVID-19 and the resulting changes in consumers’ vehicle repair behavior. Changes in the populations of the major types of DIFM outlets will continue, creating challenges and opportunities for a variety of aftermarket players. Six Major Takeaways The number and complexity of cars and light trucks in operation have continued to increase. Nevertheless, the population of repair outlets handling cars and light trucks fell by approximately 14,000 over the past five years (2016 to 2021). Despite the loss of car and light truck repair outlets between 2016 and 2021, three of the seven major groups of DIFM outlets expanded their populations: Repair Specialists, Foreign Specialists, and Vehicle Dealers. The number of Repair Specialists climbed by approximately 350 between 2016 and 2021, and approximately 700 Foreign Specialists locations were added. Vehicle Dealers posted a modest increase in number, reversing a trend of vanishing locations that began during the Great Recession of 2008. Service Stations & Garages suffered the most significant outlet loss from 2016 to 2021. The populations of Tire Stores, Discount Stores/Mass Merchandisers with bays, and Auto Parts Stores with bays also were battered during these years. The growing number and complexity of cars and light trucks in operation provide challenges and opportunities for the shrinking population of light vehicle repair outlets across the country. They must become more technically capable and productive to keep pace with the growing volume and complexity of vehicle repairs. See the all-new 2023 Lang Aftermarket Annual for the only ten-year analysis of the population changes sweeping across the seven major types of auto repair outlets in the U.S. View full article

GREAT QUESTION! I think we need to look at this differently. Always recruiting is not always hiring; it's building a pipeline of quality people. It involves creating relationships with your contacts and then finding out through them the top techs and top service advisors that you can reach out to and just have a conversation with. From there, you maintain contact with people that you have met and then put them in your pipeline. So, you build relationships over time. When the time comes when you need someone, you stand a much better chance at making the right choice by making an offer to someone you know and have a relationship with. One thing, if your existing people ask questions about this strategy, just simply tell the truth; you are always looking to expand your network of people and always looking to grow in the future. There is a lot more to this process, but I thought I hit on the main points. Not to plug Elite, but at the Eagles Fly with the Eagles course that I present, we spend a half day on this subject alone. Any questions? Let's keep the conversation going.

First, Auto Shop Owner is primarily comprised of aftermarket auto shop owners from around the world and also companies that support the aftermarket. You have a unique business and one that does not fit into the "normal auto repair shop," as you state. With that said, it's important to understand your numbers: your labor costs, material/parts cost, and operating expenses to start with. Then you need to establish your required gross profit on labor and parts in order to pay for your operating expenses. And of course, you need to have a decent net profit(bottom line) I don't want to trivialize your business model; I just want to start the conversation. I would like to hear from businesses that are similar to yours. I ran a traditional multi-store auto repair shop for 41 years, and now work as a business coach. Great Topic!!!

What are your Thanksgiving business hours this week? The balance between time off and responsibilities to our business and customers is a challenge. What strategies do you implement and how do you balance the Thanksgiving holiday for your auto repair shop?

There are many things to consider when creating a marketing plan. Among them are establishing a budget, what forms of media should be used, and whether traditional advertising, such as TV, radio, and print, is still relevant. And of course, how much should be allocated to social media and digital advertising? All the above are essentials to any marketing plan. However, the first step is ensuring that you have a healthy workplace and that your employees understand your company’s culture and the overall mission and vision. We all know that happy employees create happy customers. No form of advertising can overcome a toxic workplace with unhappy employees. If your employees are not creating an amazing customer experience, your marketing plan will not work. Advertising and marketing may bring in customers, but the people in your company creating an amazing customer experience will be the most important component of your marketing plan. It’s the customer experience that sells work and gives the customer a reason to return. Creating an amazing employee experience, which creates an amazing customer experience, is also the most cost-effective part of your marketing plan. In fact, it cost next to nothing.

I would suggest, "Running the Shop"

Yes, I think that would be best. And give some specific examples of what issues you are referring to. Let's see what happens. Thanks!

First and most important, I hope all turns out well for your wife. A lot has to be figured out with regard to battery charging before the EV is mainstream. In the foreseeable future, if battery technology stays the same, EVs will be more practical for homeowners or those that have everyday access to an EV charging station. If you look at all the major cities, it's hard to imagine EVs having an impact for everyday use. With regard to the world order and bigger is better, there is no doubt the government push for the EV means there is money to be made by big business. Will this push the average auto repair shop into oblivion? I don't think so. Independent auto repair shops have always been resilient and always found a way to survive and thrive. With that said, it will get exponentially harder, and auto repair shop owners must do all they can to become financially strong and build a strong business model.

I don't know the finances of your business, but from what I see around the country, quality repair shops are in the $175.00 range, with EURO, Diesel, and Specialty shops above $200. So I don't think you are pushing the envelope. In my opinion. I have been saying this for years: "As an industry, we have been too cheap for too long."

As a business coach with Elite Worldwide, I speak to many shop owners around the country about their struggles and concerns. At the top of that list is driving more profit to the bottom line. Some of the questions I hear are: Should I increase my marketing budget? Should I raise prices and my labor rate? Is it a car count issue or an ARO issue? Or should I improve my procedures and policies? All of these are great questions and the right questions. However, the first step in improving your business is to ask yourself: Do I have the right people employed at my auto repair shop? Whether you are struggling in business or having a banner year, your future depends on the quality of people you assemble around you. Do all you can to take care of your employees. Listen to them, and include them in on ways and ideas to build your company. Make them feel important. When you assemble a great team of employees and take care of that team, trust me, profit will follow.

With the difficulty auto repair shops have these days finding quality techs, I thought it would be a good idea to share our ideas on what ways have worked for you. Please post what has worked for you in the past when looking to hire a technician.

The best place to have an honest and open discussion is right here on Auto Shop Owner. The members of ASO are pros and always willing to help. Post your issues. Start the discussion. You mention shop management issues. Can you name a few? By the way, I am a former shop owner (41 years), co-founder of ASO, and a business coach for Elite Worldwide. And happy to be part of this discussion.

NEW YORK GOVERNOR ACCELERATES ELIMINATION OF EMISSION-PRODUCING VEHICLES IN 2035 A goal for New York to stop selling new gas-powered vehicles in a little more than a decade took another step toward reality with an announcement Gov. Kathy Hochul made Sept. 29. Hochul spoke in White Plains, NY, at an event celebrating National Drive Electric Week. While detailing several initiatives to help boost the New York Governor Accelerates Elimination Of Emission-Producing Vehicles in 2035 l CONTINUED ON PAGE 10 sale of electric vehicles, she also called on the New York State Department of Environmental Conservation to establish regulations that any new passenger vehicle sold in the state starting in 2035 produce zero emissions. Hochul’s announcement comes a little more than a year after she signed a bill into law that set the 2035 deadline for new passenger cars to produce zero emissions and a similar 2045 deadline for larger-sized commercial vehicles. It also comes a month after California issued its regulations to transition to zero-emission new vehicles by 2035. New York’s governor said the transition would not be a sudden stop on gas-powered vehicle sales. The state has a plan to have 35% of new cars be electric vehicles by 2026 and 68% by 2030. “We’re really putting our foot down on the accelerator and revving up our efforts to make sure we have this transition,” she said. Hochul announced the state has added $10 million to its “Drive Clean Rebate” initiative to aid in that transition. It gives people who buy or lease a new electric vehicle a $2,000 rebate on top of the $7,500 federal rebate. In the five years since the program started, the state has issued more than $92 million in rebates to New Yorkers. “As we bring more renewable energy to our electric grid and build out EV charging infrastructure, we continue to invest in market supports that bring us closer each day to zero emission passenger vehicles by 2035,” said Doreen Harris, the president and CEO of the New York State Energy Research and Development Authority. The state is also making nearly $5.8 million available to local governments to help them add zero-emission vehicles to their fleet or install public charging centers or hydrogen fueling stations. The deadline to apply for that funding was Sept. 30. The U.S. Department of Transportation announced it approved New York’s plan to install the additional charging stations needed to handle the expected increase in electric-powered vehicles. That plan includes $175 million in federal funds to create a network of charging stations to help EV drivers handle long-distance trips. Hochul said the federal funds, coupled with the $1 billion the state has invested in new charging stations, should raise EV sales. She added this year’s sales are already 30% higher than last year. The state also plans for school districts to buy only zero-emission buses starting in 2027 and to have any gas- or diesel-powered school bus off the road by 2035. “New York is a national climate leader and an economic powerhouse, and we’re using our strength to help spur innovation and implementation of zero-emission vehicles on a grand scale,” Hochul said Source: https://www.governor.ny.gov/news/governor-hochul-drives-forward-new-yorks-transition-clean-transportation

Great perspective! New York too just proposed nearly the same bill as CA, to ban ICE cars by 2035. Not sure where we are headed with this, but we do need all forms of energy. Another thing, to strip mine sides of mountains for getting the precious materials needed for the EV and hybrid batteries is controversial too. The problem is, not enough people know or will do their homework to make an informed decision. Agree too: Really enjoy these posts!

While I am not an Auto Shop Owner anymore, my work with Elite as a business coach puts me in touch with a lot of shops around the country. And while business is still good, there are signs that it may be slowing as we head into the winter season. Perhaps the effect of inflation and the cost of living. What do you see in your market? And what should we do to maintain business through a potential slowdown?

Join me on November 10 at 2 pm Eastern! See details below and to register! For more information on the webinar and to Register: https://us06web.zoom.us/webinar/register/5116675705371/WN_mT6jAjATRlqGJN40eLUByw

Nov. 1, 2022—In his opening remarks leading into the 2022 AAPEX Opening Session, Bill Hanvey, president and CEO of the Auto Care Association (ACA), announced that Right to Repair was delayed again for the seventh time. For more information:

Interesting concepts. Are you transparent with your current employees on this plan, or is it kept private? (If that's possible)

Wow! I think your attitude is keeping it all together. You combine humor with real-world issues and problems. Thanks for sharing. I am sure all of us can relate!

In my 41-year career as a shop owner, I think that at least 80% of that time I experienced what I called, the Unexpected Wake-Up Call at 2:00 am. I would go over and over all the things that happened throughout the day, and what I needed to do tomorrow. For me, it was the uncertainty of the next day, and what fire I would need to put out that troubled me the most. I know you have those nights too, so let's share a little. What Keeps You Up at Night?