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.

ETI - Tool Tech

A week in Carefree, AZ.
I recently returned from a few days in Carefree, AZ, where the Equipment & Tool Institute held their ToolTech 2008, a conference that brings together many premier US tool manufacturers with car companies and other interested parties to discuss current and future tool needs for the automotive world. People from Ford, GM, Toyota, Mazda, Honda, ISN, Medco, SPX, Snap-on Tools, and Bosch were there. Also companies like Nupla, JS Steelman, ALLDATA, Cardone, Hennessy, Autoland, and Drew Technologies attended. Overall there were 130 attendees, representing more than 70 companies.

ETI organized a panel of OE representatives to give us their view on upcoming tool trends. Ford, GM, Honda, Mercedes, Suzuki, and Toyota were represented.

Diesel Testing: They all see an increased need for diesel testing tools in the future. 17% of Ford F-series trucks will have diesel engines. GM expects hybrids to account for 10% of their total vehicle portfolio within the next 1-3 years. Honda will expand their small vehicle line over the next couple ofyears. They have launched several diesel engines in Europe, and we should see them in the US within the next 3 years. Mercedes is moving into the hybrid market. Suzuki currently has diesel in other parts of the world, not the U.S. Toyota admits they are a couple of years out from U.S. diesel products. They are currently committed to hybrids - 3 Lexus, 3 Toyota brands. They intend to increase the offering, though there is still a price penalty. Their research in plug-in hybrid technology is on-going.

Scan Tools and Diagnostic - traditional v. non-traditional requirements for scan/diagnostic tools
Suzuki - Anti-theft systems are getting more sophisticated,they feel scan tools will be needed for these systems.
Toyota - virtually every system will be accessible to scan tools, and they foresee as many as 50 scan codes per vehicle, even for something simple like the outside mirrors. The Toyota rep said, "if they can find a way to computerize the makeup mirror, they will."
Mercedes - They are looking for one simplistic tool that does one specific diagnosis very well.
Ford - Sees a lot of systems migrating towards communications systems, with modules and module programming more prevalent.
GM - GM is looking at the mass and fuel economy in new vehicles. They are investigating lighter materials to create less dense vehicles. This will have an impact on fuel economy, but also on noise reduction and road harshness. With hybrids, they continue to see the heat from Li-Ion batteries generating the biggest challenges.You can expect a need for future serviceability of high heat areas or battery cooling systems. Also see a need for diagnostic tools for the back-up sensing technology.

Finally - on the dealership level - many see a need for tool inventory and tool storage controls. There is a need to make the tools more accessible during the work day, so work can be done efficiently. But they still recognize that many tools come up missing during the course of a year.

Over the 3 day event, I spoke with quite a variety of people, including car company representatives, tool company representatives, tool & equipment distributors, and Dan Brass (see photo above. That's him in the blue shirt). While many commented on the general malaise of the economy, most reported they are having a good year. People are reaching out, looking for new markets, and they are finding them. It's encouraging to hear this, because I think the more people hear how bad business is, the more they are going to agree. Instead, I think we should focus on the positive things that are happening in our industry.

Many tool companies are in the final stages of bringing new products to market. Some plan to launch them at the ISN show in June, others are launching them through the mobile distributors, over the next few months. No matter how they're getting to market, its's encouraging to see the continued efforts to grow their businesses.

New products continue to drive a lot of our sales efforts. Reach out to your manufacturer/supplier/distributor and find out what's new and different. There's probably more than you realize.

Ask, Nicely

How do you introduce new technology to your franchisees? Recently McDonald's announced they were going to start selling premium coffee/cappuccino for about 50 cents less than Starbucks. The catch? Their franchisees had to buy the cappuccino machines. This adds financial pain to the adoption of new technology. And, this announcement got me thinking, If you work with franchisess, how do you introduce new technology to them? Sometimes a parent corporation will decide to adopt some new innovation - perhaps a computerized order-entry program. Do you provide the technology at no charge to your franchisess, knowing the savings will come in faster order processing and improved customer service, or do you require your franchisess to shoulder the burden of the cost? Many times franchisees worry that the installation of new technology could disrupt their business, require a major commitment to training, prove unreliable, or worst of all, cost them customers. How do you overcome this reluctance?
Let's take this out of the franchise situation, and instead, put your Tool SalesPerson hat on. How do you overcome reluctance on the part of your customer to adopt new technology? Maybe someone has read about a great new scanner that utilizes never-before-seen technology. They're interested, but frankly, a little intimidated. Here's how you can overcome their reluctance to buy:
1 - educate yourself. Make sure you understand the key benefits this new tool will provide. Make sure you can explain them.
2 - keep it simple. Don't try to explain all the bells and whistles at once. Stick to the highlights.
3 - allow your customer to hold the tool. While they are holding the tool, tell them how easy it is to use, and what jobs it does faster or easier than the tool they use now.
4 - Still not sold? Ask them if they'd like to take it for a "test-drive". Teach them the basics of how to use it, then offer to let them keep it for a week. If, after a week, they don't want it, you take it back. More then likely, the test-drive will seal the deal and you'll sell the tool.
Another way to sell more tools is to create disciples. If you can sell something to the skeptic, sometimes you can turn that person into your best spokesperson.
In the end, of course, the way you sell tools is - you ask for the order.