Dealership conference speaker focuses on technician retention over recruitment

A dealership general manager and former dean of the Auto Diesel Institute told the audience at the Digital Dealer Conference & Expo this past week that dealerships should rethink how they retain technicians, according to news coverage from Car Dealership Guy. 

“It’s not a recruiting war; it’s a retention war,” the article quotes Jennifer Briggs, general manager at Volkswagen of Marion in Illinois.

The U.S. economy is short roughly 140,000 skilled technicians a year, and the gap is widening, with 73,354 new collision repair entrant technicians needed by 2029, according to the TechForce Foundation’s latest  “Technician Supply, Demand & Opportunity Report.” 

The report finds that across those 10 sectors, employers will need 241,842 new technicians per year through 2029, compared with 101,743 students who graduated from technical schools and community colleges last year. TechForce found that the collision repair sector sees the highest turnover of the 10 analyzed at 60.7%. 

“If we train 59% of what we need every year, we [still] have a 29% gap,” the article states that Briggs said.

On average, a dealership pays a headhunter about $5,000 to place one technician, who could be poached from another shop, according to the article based on Briggs’s presentation. She added that in about a year or two of employment, those technicians will likely leave for the next $5,000 bonus.

She suggests building a relationship with local trade schools. The article adds that structured apprenticeship programs with paid incentives build a lasting pipeline. 

The Collision Engineering Career Alliance (Collision Engineering) apprenticeship model was recognized earlier this year by the U.S. Department of Labor as the standard for collision repair technician training and certification. 

Collision Engineering’s National Guidelines for Apprenticeship Standards (NGS) certification serves as a model for developing local programs that meet all federal regulatory requirements with the U.S. Office of Apprenticeship.

Collision Engineering students complete a two-year associate degree program designed around a hybrid, work-based learning model. They rotate every eight weeks between classroom instruction and paid apprenticeships at qualified collision repair facilities.

Briggs also said during the conference that partnerships only pay off when students work real jobs in the shop, the article notes. 

Another way to partner with programs is to donate vehicles, Briggs said. She said the vehicles can be written off. 

Briggs pointed to Wrenchway.com as a free platform that shops can use to find ways to volunteer with programs. 

The National Institute for Automotive Service Excellence (ASE) acquired WrenchWay in July. 

Earlier this year, ASE and WrenchWay launched ASE Connects to help build a stronger technician pipeline through connections between schools and industry, expanding access to workforce data, and supporting automotive, diesel, and collision career pathways.

As the organizations integrate, ASE says ASE Connects will remain a major focus, while WrenchWay’s technology and expertise support additional areas across ASE’s growing portfolio.

Briggs also says in the article that the flat-rate pay model doesn’t work for the incoming generation. She added that the younger generation likes a base with performance pay and stronger programs with built-in raises for earning certifications. 

OEMs are also starting to look at how to fill the technician gap. 

Ford is holding its “ACCELERATE the Essential Economy” event today with a focus on the need for skilled workers, including technicians. The event can be streamed live by subscribing here.  

Jim Farley, Ford CEO, estimates 2.1 million skilled trade jobs may go unfilled by 2030. He adds this opens a hole in the economy that keeps the lights on, water running, and roads passable.  

“We’ve taken to calling this the Essential Economy, because that is what it is: essential,” Farley says. “And it is straining.”

GM CEO Mary Barra recently discussed a workforce shortage on Fortune’s “Titans and Disruptors of Industry” podcast. She said high school students shouldn’t overlook blue-collar jobs, which could offer more protection from AI than some white-collar paths. 

“[We need to] really make sure high school students understand this is a great career and frankly maybe a little more AI-proof than some others,” Fortune reports Barra said.

Ford held the first ACCELRATE event last year, bringing together business leaders, educators and policyholders in Detroit to look at the strain. Farley writes that this year’s event will be bigger and has a year of evidence.

Image

Photo courtesy of sommart/iStock