It’s no secret to anyone in the automotive repair industry that there’s a shortage of qualified technicians. The U.S. Bureau of Labor Statistics estimates that there will be roughly 67,700 new job openings for auto techs and mechanics per year through 2032 due to employees retiring or changing professions.
Each open job costs dealerships and repair shops money. According to the National Automobile Dealers Association’s 2023 mid-year report, the average customer-pay repair order (CPRO) is $452. Assuming that a typical automotive tech works 240 days per year, spends 1.25 hours per CPRO, and is productive for 80–90% of their time on the clock, each unfilled job opening costs nearly $600k in annual revenue.
In addition, the tech shortage is forcing some repair shops and dealerships to book appointments over a month in advance. A study by MarketSource — a subsidiary of Allegis Group, the world’s fourth-largest talent management firm — indicates that, in some markets, more than 30% of dealers book repairs at least four weeks out due to a lack of qualified mechanics.
Thankfully, there are some concrete steps you can take to make your shop more appealing to prospective auto techs. Let’s discuss four ways your dealership or repair shop can better manage today’s shortage of automotive technicians.
1.) Challenge The Public Perception Of Auto Technicians
One major issue auto repair businesses face nationwide is the industry's public perception. Today’s high schools frequently praise the benefits of students attending four-year colleges instead of pursuing careers in the trades. This issue isn’t just affecting automotive companies — the U.S. is also facing a major shortage of plumbers, HVAC techs, electricians, and other tradespeople.
On a societal level, we need to encourage more young people to pursue trades. Going to college isn’t the right option for everyone, especially considering the high cost of attending universities, which can often lead to crippling student debt.
But what can an individual auto shop or dealership do in this regard? It’s important to focus on the positive aspects of the automotive technician’s career. When writing job descriptions for open positions or talking to young people in your area, highlight the career’s strong wages. Additionally, emphasize how enjoyable this career path can be — no two days in the shop are the same, it’s satisfying to diagnose and fix customers’ problems, etc.
2.) Provide Technicians With The Tools And Technology They Need To Succeed
One significant hurdle to entering this industry is the high cost of buying tools. Many apprentices and junior techs are still expected to purchase basic tools (and sometimes specialized tools, as well) on their own. If you want to attract more candidates for your auto tech job openings, provide these tools yourself, removing this common barrier to entry.
Also, consider buying auto repair shop management software to streamline your operations and optimize your techs’ hourly output. Offering digital vehicle inspections is another tech-savvy way to help your employees use their time wisely, as digital inspections save time and also have lower administrative costs for your business.
3.) Pay Technicians a Fair and Competitive Wage
In today's competitive job market, it's essential to regularly evaluate your pay plan to attract and retain top-notch automotive technicians. With the growing shortage of skilled technicians, offering competitive wages can set your shop apart from the competition. Inflation has significantly impacted wages across all sectors, and the automotive industry is no exception. As the cost of living increases, technicians seek employers who recognize their skills and compensate them fairly.
Paying technicians what they deserve isn't just about meeting industry standards; it's about acknowledging the demanding nature of their work. Modern vehicles are more sophisticated than ever, requiring technicians to possess a deep understanding of advanced systems and technology. By offering a salary that reflects these demands, you show potential hires that you value their expertise and are willing to invest in their future. Ultimately, a well-compensated technician is more likely to be motivated, productive, and loyal to your business.
Seasoned auto technicians deserve compensation commensurate with their expertise, while entry-level techs need incentives to remain in the industry. Not all techs are created equal — offering a strong pay plan gives the good ones a reason to stay.
Having trouble figuring out how much to pay your auto techs? We can help! Schedule a quick call with AutoMarket today. We’ll conduct an in-depth local job market analysis to help you determine a fair wage while also finding qualified applicants for your job openings.
4.) Invest In A Positive Workplace Environment
Another way you can appeal to more candidates is by taking steps to develop an inviting environment at your shop. Provide pathways for ambitious, skilled technicians to earn promotions instead of spinning their wheels in the same role for too many years. Additionally, offering paid training, top-notch benefits, referral fees, and other financial incentives can dramatically increase the number (and quality) of interested applicants.
Being an auto tech can be a demanding career, so make sure to promote work-life balance for your employees to help avoid burnout. Respect everyone’s personal time away from work. On the flip side, don’t hold training sessions during shop hours, as this can decrease a tech’s overall earning potential. Finding a happy medium between these elements will help create an environment where people want to work.
By taking these steps, you can also make your workplace a more appealing environment for women and people of color. Even today, auto techs are overwhelmingly white men — data from the U.S. Census Bureau indicates that they represented 68% of all auto technicians and mechanics in 2022. By appealing to a broader demographic, you’ll have a deeper talent pool to draw on, and so will the industry at large.
Conclusion
It’s crucial for automotive repair shops to continually bring in highly qualified young technicians to replace the older generation reaching retirement. The current shortage of experienced auto techs has placed a strain on many dealerships and auto repair shops across the country, but there are solutions to this problem.
By improving the public perception of automotive technicians, investing in top-notch tools and technology for your shop, increasing wages, and developing an inclusive and welcoming workplace environment, you can draw top talent for your job openings.
If you need some help hiring - schedule a quick call with our team of recruiting experts today! We can help you find experienced techs for your dealership or repair shop, filling any gaps in your roster of employees and helping prevent missed revenue from understaffing. With AutoMarket’s pre-screened candidates and guaranteed results, you can focus your energy on attracting new customers and filling your repair bays instead of spending valuable time trying to find the right people for your job openings.
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