Previous 2 blogs removed due to industry uproar. My apologies. I will try to remain open, fair-minded, non-committal..... more like Switzerland and less like the opinionated tool-type that I am. Until the next time something gets me going!
Tuesday, July 22, 2008
Friday, July 18, 2008
Technician Shortage, Need for Training
This is a letter we received earlier this month from Dexter Baum, second generation owner of Baum Tools. He is responding to Larry Carley's article about the alleged technician shortage in the U.S. You can read Larry's article in the June issue of TechShop magazine.
July 16, 2008
Hi Larry,
I just finished reading your June article “What Technician Shortage”. Just thought I’d throw my two cents in.
I agree with you Larry. There are plenty of technicians in the US to go around. You make an excellent point with the Stats on how many techs are working on cars vs. how many are properly trained. This is evidenced every day in our own (in-house) sales and tech departments here at Baum Tools. Since all we sell are special hand and diagnostic tools for the repair of European cars we make contact with technicians everyday. That’s the nature of it. If we don’t talk to the tech regarding his specific application, we are likely to send him the wrong tool. As an example: We may have four different pullers for the same bushing on a BMW. Depends on model and year to determine which one you need. Our guys need to know that. We have the same factory information the dealer has and talk to dealer and independent techs constantly regarding new issues and it’s still a challenge with all our resources. We spend tens of thousands every year just buying the latest factory special hand tools, diagnostic tools and subscribing to factory information just to keep up.
We are on the phone all day long with techs needing a special tool. Sometimes, 20 or so calls are from tool distributors with a tech in his ear. Since we talk to techs all day our phones are manned by expert ex-technicians who generally know more about the use of the tools than the guy buying them. When you talk about training needed for auto repair technicians, we know from experience that some of these techs are in way over their head with a car. Sometimes the calls we take make me glad none of my family vehicles are within a hundred miles of the guy’s shop. It’s remarkable how many guys are in trouble trying to repair sixty thousand dollar cars. Most of our calls are from pretty smart guys. In defense of the technicians in trouble on our phones, which can sometimes be quite a few in one day’s time, most want to know more about these vehicles but can’t get the high-level training they need because it’s just not offered outside the dealer network. The independent shops need high-level training nearly constantly. When you talk about the need for training I think it’s a good idea to mention that every few years systems can completely change for most manufacturers. There becomes a need for more training. The systems have become so complex that a good automotive technician also needs to be a bit of a computer technician. As you and others have written before, much of automotive repair is becoming a complex puzzle of computer diagnostic troubleshooting. Maybe that will lure some of the tech geeks into this business.
I know you’re right about the aging master technician working longer. I’m 57 and I’ve been selling tools to many of these guys since I was in my twenties. I know many 65 and 70 year olds still turning wrenches. Some with serious health challenges, some a bit luckier. Many of the smarter veteran shop owners we know have surrounded themselves with a few good techs and kept them by sharing the wealth. I think that’s essential for an aging shop owner. You’ve got to keep the level of pay high, raise prices a bit and give the best service you can. Everybody’s read about adding extra services to keep good customers. Added value is very important. That’s why we got into the tech help business. Too many older technicians frightened of new systems
As far as health care goes. Something needs to be done. When the real bulk of us hit medicare’s front door in five to ten years the building will fall. Maybe one of those young computer techs you spoke of in your June article will come up with something.
Thanks for the great insight you share each month.
Best regards,
Dexter Baum
Baum Tools Unltd. Inc.
I spoke with Mr. Baum this morning to thank him for his comments. He made some clear observations about the state of part of our industry. I think it's a serious call to action that is required here.
We need more tool and equipment manufacturers to step up and provide education and training on their products. We need more independent repair shops to step up and provide education and training on new tools and equipment. It's an investment in the future of our industry.
July 16, 2008
Hi Larry,
I just finished reading your June article “What Technician Shortage”. Just thought I’d throw my two cents in.
I agree with you Larry. There are plenty of technicians in the US to go around. You make an excellent point with the Stats on how many techs are working on cars vs. how many are properly trained. This is evidenced every day in our own (in-house) sales and tech departments here at Baum Tools. Since all we sell are special hand and diagnostic tools for the repair of European cars we make contact with technicians everyday. That’s the nature of it. If we don’t talk to the tech regarding his specific application, we are likely to send him the wrong tool. As an example: We may have four different pullers for the same bushing on a BMW. Depends on model and year to determine which one you need. Our guys need to know that. We have the same factory information the dealer has and talk to dealer and independent techs constantly regarding new issues and it’s still a challenge with all our resources. We spend tens of thousands every year just buying the latest factory special hand tools, diagnostic tools and subscribing to factory information just to keep up.
We are on the phone all day long with techs needing a special tool. Sometimes, 20 or so calls are from tool distributors with a tech in his ear. Since we talk to techs all day our phones are manned by expert ex-technicians who generally know more about the use of the tools than the guy buying them. When you talk about training needed for auto repair technicians, we know from experience that some of these techs are in way over their head with a car. Sometimes the calls we take make me glad none of my family vehicles are within a hundred miles of the guy’s shop. It’s remarkable how many guys are in trouble trying to repair sixty thousand dollar cars. Most of our calls are from pretty smart guys. In defense of the technicians in trouble on our phones, which can sometimes be quite a few in one day’s time, most want to know more about these vehicles but can’t get the high-level training they need because it’s just not offered outside the dealer network. The independent shops need high-level training nearly constantly. When you talk about the need for training I think it’s a good idea to mention that every few years systems can completely change for most manufacturers. There becomes a need for more training. The systems have become so complex that a good automotive technician also needs to be a bit of a computer technician. As you and others have written before, much of automotive repair is becoming a complex puzzle of computer diagnostic troubleshooting. Maybe that will lure some of the tech geeks into this business.
I know you’re right about the aging master technician working longer. I’m 57 and I’ve been selling tools to many of these guys since I was in my twenties. I know many 65 and 70 year olds still turning wrenches. Some with serious health challenges, some a bit luckier. Many of the smarter veteran shop owners we know have surrounded themselves with a few good techs and kept them by sharing the wealth. I think that’s essential for an aging shop owner. You’ve got to keep the level of pay high, raise prices a bit and give the best service you can. Everybody’s read about adding extra services to keep good customers. Added value is very important. That’s why we got into the tech help business. Too many older technicians frightened of new systems
As far as health care goes. Something needs to be done. When the real bulk of us hit medicare’s front door in five to ten years the building will fall. Maybe one of those young computer techs you spoke of in your June article will come up with something.
Thanks for the great insight you share each month.
Best regards,
Dexter Baum
Baum Tools Unltd. Inc.
I spoke with Mr. Baum this morning to thank him for his comments. He made some clear observations about the state of part of our industry. I think it's a serious call to action that is required here.
We need more tool and equipment manufacturers to step up and provide education and training on their products. We need more independent repair shops to step up and provide education and training on new tools and equipment. It's an investment in the future of our industry.
Wednesday, July 16, 2008
TEDA Vendor Advisory Meeting
Last month TEDA held their 22nd annual Vendor Advisory Meeting. This year it was held in Annapolis, MD. All nine TEDA members were in attendance, as were approximately 80-100 supplier teams.
I'm not going to review all their sales numbers, you can read some of that in the August issue of TechShop magazine. Instead, I want to share with you some of the comments that Rob Halbritter, Chairman of TEDA made to the assembly. He's an easy guy to listen to. He gets his point across easily. I think it's due to his many years as a teacher, in his LBMS (life before Mid-States). He talked about the changing dynamics of our industry, from the distributor's viewpoint, and focused on the manufacturer and the benefits of working together as a team to reach the aftermarket.
I'm going to paraphrase here, because I couldn't write fast enough to keep up with his talking. I also tend to interject my own comments, so don't take this as complete gospel from the TEDA meeting, it's more of a mix of Rob's speech, some of his comments, and my thinking about it:
The cost of windshield time and air travel is changing the way we do business, once again. E-mail is becoming a more frequent way of meeting with our customers. As a distributor of your tools and equipment, I want you to know that I feel we're all in this together. If we think that what we do today or did yesterday is ging to be sufficient fo rthe future, I think we're blindsiding ourselves. There are a lot of followers out ther in our market. We need to do some things differently - some people have some good ideas about how to change their future. But we have to get off our backsides and do something. Too many people in our industry still think they can continue doing business like we did 5, 10 or even 20 years ago. This is just not the case.
Our business is like a sharp knife - catch the knife by the handle and you can use it as a tool. But, you catch it by the blade and it can cut you to pieces.
We all have dreams - both personal and professional. The true business winner is a doer, not a dreamer. I would say the true business leader is one who can dream, and then make that dream a reality. I think you need a vision of what your business can be, or what you want it to be, before you can make it happen. Isn't there a phrase like, "I don't know where I'm going, but I'll know when I get there."? Well, that is no way to run a business in this tough economy, and during these tough market conditions. As a business leader, you have to have a dream, a plan, and develop the ways and means to achieve your dream.
The mom & pop business, that which was once our bread and butter, is going away very quickly. In some parts of the country, it is already gone, gone, gone. Our business used to be split pretty evenly between storefront and mobile jobbers. Now we need to add the internet into the mix. if we are to continue to grow, we need to develop new products, new markets, new customers. The members of TEDA are committed to 3-step distribution. If it runs on wheels, if it floats or flies - all these markets use your tools and equipment. We need to work together to capture the attention of the people who buy your products.
I'm not going to review all their sales numbers, you can read some of that in the August issue of TechShop magazine. Instead, I want to share with you some of the comments that Rob Halbritter, Chairman of TEDA made to the assembly. He's an easy guy to listen to. He gets his point across easily. I think it's due to his many years as a teacher, in his LBMS (life before Mid-States). He talked about the changing dynamics of our industry, from the distributor's viewpoint, and focused on the manufacturer and the benefits of working together as a team to reach the aftermarket.
I'm going to paraphrase here, because I couldn't write fast enough to keep up with his talking. I also tend to interject my own comments, so don't take this as complete gospel from the TEDA meeting, it's more of a mix of Rob's speech, some of his comments, and my thinking about it:
The cost of windshield time and air travel is changing the way we do business, once again. E-mail is becoming a more frequent way of meeting with our customers. As a distributor of your tools and equipment, I want you to know that I feel we're all in this together. If we think that what we do today or did yesterday is ging to be sufficient fo rthe future, I think we're blindsiding ourselves. There are a lot of followers out ther in our market. We need to do some things differently - some people have some good ideas about how to change their future. But we have to get off our backsides and do something. Too many people in our industry still think they can continue doing business like we did 5, 10 or even 20 years ago. This is just not the case.
Our business is like a sharp knife - catch the knife by the handle and you can use it as a tool. But, you catch it by the blade and it can cut you to pieces.
We all have dreams - both personal and professional. The true business winner is a doer, not a dreamer. I would say the true business leader is one who can dream, and then make that dream a reality. I think you need a vision of what your business can be, or what you want it to be, before you can make it happen. Isn't there a phrase like, "I don't know where I'm going, but I'll know when I get there."? Well, that is no way to run a business in this tough economy, and during these tough market conditions. As a business leader, you have to have a dream, a plan, and develop the ways and means to achieve your dream.
The mom & pop business, that which was once our bread and butter, is going away very quickly. In some parts of the country, it is already gone, gone, gone. Our business used to be split pretty evenly between storefront and mobile jobbers. Now we need to add the internet into the mix. if we are to continue to grow, we need to develop new products, new markets, new customers. The members of TEDA are committed to 3-step distribution. If it runs on wheels, if it floats or flies - all these markets use your tools and equipment. We need to work together to capture the attention of the people who buy your products.
Tuesday, July 15, 2008
$200 a Barrel?
Newsweek just devoted a page in this week's issue to provide a snapshot of what life in America might look like if/when oil goes to $200 a barrel (tho thankfully it fell $6 today before trading ended.) Michael Lynch, of Strategic Energy & Economic Research provided the estimates of changes we can expect. Here are some highlights:
Gasoline Prices: UP 53%
Number of Airlines going bankrupt: 8
Motel stays: DOWN 5%
Sales of Long-distance Bus Tickets: UP 8% (rumor has it that Las Vegas is setting up a special Greyhound bus terminal specifically for the AAPEX and SEMA shows to bring in all the SoCal jobbers and technicians) I know the cost for a Continental flight to Las Vegas from Cleveland is $100 more today than it was a month ago.
Hummer Sales: DOWN 13%
Corn Prices: UP 25% ($.45 each at this past weekend's local farmers market)
Dow Jones Transportation Index: DOWN 15%
NYSE Energy Stocks: UP 12%
Hybrid Vehicle Sales: UP 40%
Consumer spending on gas is projected to exceed spending on food about the 3rd or 4th quarter of 2009. Can't wait!
Gasoline Prices: UP 53%
Number of Airlines going bankrupt: 8
Motel stays: DOWN 5%
Sales of Long-distance Bus Tickets: UP 8% (rumor has it that Las Vegas is setting up a special Greyhound bus terminal specifically for the AAPEX and SEMA shows to bring in all the SoCal jobbers and technicians) I know the cost for a Continental flight to Las Vegas from Cleveland is $100 more today than it was a month ago.
Hummer Sales: DOWN 13%
Corn Prices: UP 25% ($.45 each at this past weekend's local farmers market)
Dow Jones Transportation Index: DOWN 15%
NYSE Energy Stocks: UP 12%
Hybrid Vehicle Sales: UP 40%
Consumer spending on gas is projected to exceed spending on food about the 3rd or 4th quarter of 2009. Can't wait!
Thursday, July 10, 2008
Those pesky car order eaters
Now we know why our cars don't always get fixed right! Be sure to read the fine print the next time you drop your car off at one of those import specialists.....
Tuesday, July 1, 2008
More News from ChinaToday.com
Having recently been to two different tool and equipment events over the past three weeks, China was the topic of discussion for many manufacturers. We are all seeing the effects on our costs as China continues to develop. These are just a few notes from today's China Today. The magnitude of the country is difficult to comprehend for those of us who have not actually traveled to China to see first hand the tremendous changes occurring daily.
-In 2007, 101,480 people died in workplace and transportation accidents.
-China has nearly 160 million vehicles on their roads (as of January, 2008) That little car you see at the top of this entry? It's the Geely Beauty Leopard and sells for about $15,000 in China.
-Chinese consumer inflation was at 7.7% through May, 2008
-Their GDP was up 10.6% through the end of the first quarter, 2008. This is down slightly from their 11% growth of the previous quarter.
And in today's news, for anyone headed to Beijing for the Olympics:
On July 1, Beijing banned more than 250,000 high-emission vehicles from its roads in their continued efforts to curb pollution. That's just 10% of the total vehicle population in Beijing, but they say these vehicles account for 50% of the pollution. They will not be allowed back on the streets until 9/20/08 - after the Olympics end. I guess it's good for foreigners to breathe less-polluted air, but their own people don't need clean air to breathe....
Beginning July 20th, Beijing will start alternate driving days for privately-owned vehicles. They will also remove 1/2 of the government fleet from the roads.
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