Personnel Profile: Technician Shortage - BodyShop Business

Personnel Profile: Technician Shortage

It’s no secret the collision repair industry is suffering from a technician shortage. What’s maybe not quite as well-known is that some of the industry’s current techs are suffering, too.

According to the I-CAR Education Foundation, the collision repair industry currently employs about 210,000 technicians and, of those 210,000, about 20,000 of them left the industry in the last 12 months. Although it’s a staggering figure, it wouldn’t be so bad if other qualified techs were tripping over each other to get hired in.

Unfortunately, it appears they’re only tripping over each other to get out.

Slightly less than 5,000 entry-level technicians were hired from vo-tech schools, leaving about 15,000 people to be hired in from outside the industry (47 percent) or from the non-collision auto-related industry (26 percent).

What does this mean? It means that 73 percent of entry-level people coming into the industry are undergoing on-the-job training instead of vocational school training.

But, according to some, this isn’t a bad thing; some shop owners say they prefer someone with no formal training because they can mold that person to fit the shop and don’t have to break any bad habits. Says one technician: "I think shops prefer ‘newbies’ to journeymen, especially if the shop already has journeymen on staff. Less to pay. [Plus], the older [guys] are getting burned out and gripe too much, think shop owners. New guys try to please their masters."

But not all shop owners prefer to hire newbies (people with no industry experience). Sometimes they’re forced to, they say, but they don’t like it. And then there are others who refuse to hire anyone if they can’t hire an experienced tech. Says one such shop owner, "I haven’t hired anyone new because finding qualified, ambitious technicians is almost impossible."

Because of the technician shortage, some say it’s never been a better time to be a trained tech — or for young people to choose collision repair as a career. Why? Because if you’re skilled, you won’t have a problem finding a job or making good money. Says one shop owner: "Journeymen in our area are making more money now than ever before because they’re in such high demand. You can’t find them. And when you do, you pay to keep them."

On the other hand, some say it’s never been a worse time to be a tech in the industry — which is why so many are getting out each year. Many techs say they’re making less now than five years ago, and many shop owners agree — but say they just can’t afford to pay their techs any more money because insurers, through direct-repair programs, continue to squeeze shop profits by cutting labor rates and refusing to pay for certain procedures. Says one technician, "We’re all doing more work and procedures this year for less money than last year, and next year we’ll be asked — told — to do more than this year."

What’s even more discouraging than this tech’s take on the industry is this: The technician shortage and the industry’s low recruitment numbers can be traced, in part, to the fact that careers in the collision repair industry aren’t promoted or encouraged by many high school counselors — not to mention that students and their parents often view these careers as undesirable and low paying. Unfortunately, it appears that many of the industry’s current technicians agree with them.

Does this mean it’s not a good time to be a collision repair tech?

It depends — for one, on what area of the country you’re in, on which shop you work for, on the policies of local insurers, etc. It’s good from the aspect that more shop owners are providing benefits than ever before; according to our Industry Profile, 79.3 percent of shop owners now offer employee benefits. But, as one shop owner pointed out, it’s difficult to get technicians excited about benefits when their salaries continue to stagnate — or, even worse, decrease — with each passing year, while their workload continues to increase.

What’s he saying? That benefits do not a salary make.

So what are collision techs making these days? According to our respondents, on average, a journeyman makes $36,878 per year, with some respondents paying journeymen as little as $15,000 per year and others as much as $70,000.

About 45 percent of techs are paid an hourly wage, 11.1 percent a salary plus commission, 14.3 percent an hourly wage and commission, 18 percent a percentage of the shop’s labor rate, 10.6 percent a salary, 23.8 percent a flat rate (percentage of billed labor) and 7.9 percent other methods. Says one shop owner: "My shop has been slow this year, so my techs’ income has dropped because they’re paid a flat rate. Direct-repair programs don’t help. They discount labor and aren’t willing to pay for all aspects of a repair. So, if we want to produce quality repair work, my techs end up doing stuff for free."

"How much longer can technicians be squeezed and still provide high-quality repairs? And how much tighter can shop owners be squeezed and still retain qualified techs?" asks another shop owner, adding that as frustrating as it is to be a tech right now, it’s even more frustrating being a shop owner.

Writer Georgina Kajganic is editor of BodyShop Business.

You May Also Like

Body Bangin’: The Disengagement Epidemic with Kevin Wolfe

Micki Woods interviews Leaders Way Owner Kevin Wolfe on why 73% of work professionals are disengaged today and what we can do about it.

Micki Woods, master marketer for collision repair shops and owner of Micki Woods Marketing, has released the latest episode of "Body Bangin'," the video podcast that is taking the industry by storm!

In this episode, Woods interviews Kevin Wolfe, owner of Leaders Way and former mechanical shop owner, on how he became the shop everyone wanted to work at. Wolfe also points out that 73% of work professionals today are disengaged — an all-time high — and discusses why that is and how we can fix that.

Body Bangin’: I Thought We Were Doing It Right with Josh Piccione

Micki Woods interviews Josh Piccione on repairing vehicles correctly — according to manufacturer guidelines.

Body Bangin’: Be a Star Not a Hamster with Robert Snook

Micki Woods interviews popular keynote speaker Robert Snook on how to differentiate and grow your business.

Body Bangin’: Know Me, Know My Car with Mike Anderson

Micki Woods interviews Mike Anderson on the importance of building an emotional connection with your customers.

Body Bangin’: Fighting for Consumer Safety with Burl Richards

Micki Woods interviews Burl Richards on his personal mission to fight for consumers’ rights and safety.

Other Posts

Body Bangin’: The Employer-Student Disconnect

Micki Woods interviews Raven Hartkopf, lead collision instructor at Collin College in Texas, on what students want from a shop employer.

Body Bangin’: Why Follow OEM Repair Procedures?

Micki Woods interviews Logan Payne of Payne & Sons Paint & Body Shop on the importance of following OEM repair procedures.

Body Bangin’: Getting Paid for Calibrations

Micki Woods interviews Andy Hipwell and James Rodis of OEM Calibration on how to get started doing ADAS calibrations.

Body Bangin’: What Are The Consolidators Up To With Laura Gay

Micki Woods interviews Laura Gay of Consolidation Coach on the current state of auto body shop consolidation.