to Change

When it Comes to Auto Body Shop Technician Compensation, Something Has to Change

Something has to change.

I’ll tell you up front: I’m going to be repeating those four words a number of times as you read through this article.

Something has to change.

I have a family member who graduated from high school and went to work for Amazon. He is now 21, making more than $100,000 a year. He has stock options and they pay 100% of his health insurance. And they pay for all of his college. That’s what we’re competing against when we’re trying to recruit young people into our industry.

Something has to change.

I know a body tech who got out of the industry to work as a truck driver. He’s making more than $100,000 a year now. And he doesn’t have to buy any tools. He told me, “I have a lot less stress, Mike.”

Something has to change.

There’s a convenience store at the gas station near my home. That store starts people at $18 an hour. Just to work at a gas station convenience store. That’s almost $40,000 a year. Plus health insurance. There’s no liability in that work, and they’re

not exposed to hazardous materials. They also offer up to $10,000 a year for child care reimbursement.

Yet I talk to auto body shops trying to start people out at $10 to $15 per hour. That model is broken. Our industry has got to be able to offer a more competitive wage as well as better benefits.

Something has to change.

Now I understand: We can’t compensate fairly unless we are being compensated fairly. This is absolutely not an anti-insurance article. It’s not. But at the end of the day, either labor rates have to start to come in line with what we need to compensate more fairly, shops have got to be paid for more not-included operations, or some combination of the two. Somehow we need to collect additional funds to be able to recruit and retain people.

I think we will see shops change who they do business with over this issue. They almost have to. I know one MSO has already told investors they’ve dropped some direct repair programs with “lower-margin clients that are not willing to increase pricing.”

I’ve also heard from shops saying a competitor in their market is offering signing bonuses of as much as $10,000. I don’t believe in stealing fish from another man’s pond. That’s not the solution. What we need to do is recruit by offering a more competitive compensation package.

The problem is only getting worse. We all know body labor rates have been lower than those in the mechanical industry because of body techs being able to work at 135% or 150% efficiency. But as we see less “repair” and more “replace,” technicians’ efficiencies are dropping. If it pays you five hours to replace a door, it takes you every bit of those five hours. A technician can turn a screwdriver, wrench or other tool only so fast.

The space required for the work has increased. It takes three times

900 Kietzke Lane Reno, NV 89502 775-333-8777

M-F 7:30am - 6pm Sat 8am - 4pm

n Wide Delivery Area n Competitive Pricing

Factory OEM parts for FCA US LLC applications mean a perfect fit, every time. Call us today.

LARRY H. MILLER CHRYSLER JEEP DODGE RAM

222 S. Auto Drive Boise, ID 83709 (208) 947-6554

©2021 FCA US LLC. All Rights Reserved. Chrysler, Dodge, Jeep, Ram, Mopar and SRT are registered trademarks of FCA US LLC. FIAT is a registered trademark of FCA Group Marketing S.p.A., used under license by FCA US LLC.

Need VW Genuine Parts?

Volkswagen Pasadena 866.654.8591

Parts Dept.: 626.577.0300 Fax: 626.568.0387

www.vwpasadena.com

Serving Southern California Since 1960

Helpful, Experienced Staff Find us on CollisionLink, RepairLink, OpsTrax, ValuTrax & CCC One

Parts Hours:

M-F 7:30-6 / Sat. 8-5

130 N Sierra Madre Blvd. Pasadena, CA 91107

the space of an average auto body shop stall just to perform calibrations.

The skills needed are also increasing. We need a much higher caliber person doing everything from the OEM procedure research to the final ADAS calibrations.

“It’s not just body work,” Susanna Gotsch of CCC Intelligent Solutions said at the MSO Symposium in November. “It’s mechanical work, the knowledge of electronics, understanding how telematics and the systems of the car work, how to read the manuals from the OEMs. All of that requires a higher set of training and tooling. That cost will have to be passed on. So I think we’re going to see more inflation on labor. I think that’s going to start to find its way into appraisals as well. It just has to.”

My friends and colleagues, the industry model we have right now is broken, in terms of labor rates and compensation packages. I don’t know the answer. I’ve got some ideas, I’ve got some thoughts. But I do know this:

Something has to change. ers are resold and maintain records of vehicle identification numbers. Cash payments could not be made on the spot, and would have to be delayed at least five days.

Similar laws are being passed in other states as catalytic converter thefts sweep the country, said Wilson’s office in a news release. Wilson said he modeled his legislation after a similar law that takes effect in Oregon in January out of concern it will drive thieves north of the border.

“Catalytic converter theft has become the crime of the day,” Wilson said in a written statement. “We see reports on every police blotter in every corner of the state. And the crime has exploded in just the last year.”

Driving the crime wave are rising prices for precious metals used in catalytic converters, which filter tailpipe gases and convert them to less-toxic pollutants. A thief armed with a hacksaw or an electric reciprocating saw can crawl beneath a car or truck and remove a catalytic converter in about a minute. The precious metals can be recycled, or in some cases the catalytic converter can be reused.

Converters from some vehicles are in especially high demand.

Wilson cited a report in The Daily News of Longview of 58 catalytic converter thefts by September of this year, compared to nine cases in 2020 and just three cases in 2019. About two-thirds of this year’s thefts had occurred since June.

In one Longview case, thieves targeted a used-car lot and removed multiple converters. In another, a man who attempted to stop a catalytic converter theft in progress in downtown Longview was slashed with a knife. And in a wrecking yard near Wilson’s home, where catalytic converters are removed from junk cars, a burglar was caught tossing catalytic converters over the junkyard fence.

Similar reports have surfaced in every community of the state, as thieves target parking lots and disabled cars parked along roadways.

“We live in an age in which some say we should look the other way at petty crime, because thieves are needy,” Wilson said. “But let me tell you, it’s not going to seem petty when you start your car and you hear a blast from the tailpipe. Replacing a catalytic converter is expensive, and even when it is covered by insurance, sometimes it can take weeks to get a replacement. This isn’t a nuisance crime. It’s an epidemic.”

The bill will be considered during the 2022 legislative session, which convenes Jan. 10 and adjourns March 10.

AUTOBODY

Don’t Miss the Weekly Industry NEWS Your Shop Needs. Sign Up Free Today!

www.autobodynews.com

KEARNY MESA SUBARU

It just makes sense.

THE RIGHT PART MAKES THE DIFFERENCE.

PARTS DEPT. HOURS:

MON-FRI 7-6 / SAT 8-5 KEARNY MESA HYUNDAI

YOUR SEARCH ENDS HERE.

PARTS DEPT. HOURS:

MON-FRI 7-6 / SAT 8-5

• WEHAVE WHOLESALE SPECIALISTS READYTOHELP ADVISE YOU

ON ALLYOUR SUBARU GENUINE PARTS NEEDS • OFFERING FREE DELIVERY (M-F) AND COMPETITIVE

DISCOUNTS • WEHAVE WHOLESALESPECIALISTS READYTOHELP ADVISE YOU

ON ALLYOUR HYUNDAI GENUINE PARTS NEEDS • OFFERINGFREEDELIVERY (M-F) ANDCOMPETITIVE

DISCOUNTS

800.697.6818 PH

4797 CONVOY ST., SAN DIEGO, CA 92111

800.697.6818 PH

4797 CONVOY ST., SAN DIEGO, CA 92111