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Looking Forward: What Economic Indicators Are You Looking At?

November 13, 2009
There was a recent forum thread on the International Automotive Technicians Network (iATN.net) that asked when will the market shift? When will things start changing in a positive manner that will benefit shops?
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Sure there was some finger pointing at bad shops, parts retailers and all manners of social and economic ills. But as the thread matured, one undeniable truth became evident. It was that the best shops shift more to meet the needs of their customers, communities and the bottom line rather than shifting  in the economic, social and technological winds.

Some shop owners look at miles driven, consumer data and other information generated by surveys and economic indicators. But, it does not take a degree in economics to see that the best shops do well because they know the needs of their customers and how to deliver a product drivers will pay a premium for.

It has happened many times before. In the early 1930s, shops were concerned that molded friction sets would run some shops out of business. Previously, shops bought rolls of asbestos woven friction materials and they would cut it to length and riveted or bonded it to the old shoes. As vehicles and roads improved, pre-molded friction sets started to became more common.

To reline with one of these sets required ovens and bonding equipment to remove the old material and apply the new set. Some shops were panicking. The idea of having to manage cores and an inventory of friction sets had some shops turning away vehicles and thinking about going out of business. But, the good shops made the investment in bonding and riveting equipment. But, it all changed when jobbers started to stock complete shoes.

It happened again in the early 1960s when disc brakes started to find their way onto more domestic vehicles. Many shops had seen them in the 1950s on exotic vehicles like Jaguars and Crosleys. When some shops started to see disc brakes on more Pontiacs and Chevrolets, they complained that they did not understand how calipers and brake boosters worked and they complained because it was difficult keeping lateral runout under .005. But, the good shops had already invested in training and tools long before they had problems servicing the disc brakes.

Today, shops are facing similar challenges. Servicing ABS and traction control systems are separating the good from the bad shops. Also, electric/electronic parking brakes are starting to find their way into service bays confounding more shops.

The goods shops have made the investments in training, tools and information to service these systems while some “bad shops” are arming themselves with conspiracy theories and phrases like, “you’re going to have to take it to the dealer” and “they don’t make them like they used to.”

Ray Croc, the founder of McDonald's once said, “Look after the customer and the business will take care of itself.” This is true. Good shops that have made the decision to take care of their customers vehicles by investing in tools, training and information will survive and grow. While the shop owner sitting behind the counter watching the doom and gloom coming from the waiting room TV will fail to meet their customers’ needs.

Submit a Comment   Comments (6)
Comment by:
Andrew Markel, Editor, Brake & Front End
1/22/2010
10:26 AM
Randy, policing?, I need to get a life? a women to boss me around? You are right on one of the three. I do not think you are dumb, in fact I have a higher opinion of technicians and shop owners because I have been there and come from a long line of them. Paul, Randy, I miss the good old days when cars were simple. I have a 1967 Rambler American 220, straight six, manual brakes and steering. It is a dream to work on (trying to find parts for the front trunnions). I can diagnosis any problem within two minutes. The recalls are scaring me, did you see what they are did to Camaro brake calipers and now this Toyota recall covering more cars due to the "spring in the gas pedal"? If the OEMs can to be honest with the dealers and itself, how can they be honest with independent shops who will have to sooner or later fix their mistakes?
Comment by:
Andrew Markel, Editor, Brake & Front End
1/22/2010
10:00 AM
Wow, I didn't mean to offend anybody. But, I guess I did. About me, I am 36. I own a 1967 Rambler American and a 2002 Jaguar X-Type (Cheap used car). I have worked at several shops as a service writer and technician and currently trying for my ASE Masters/L1. I took some time to digest the comments last night. I do not want to police the industry, I just get frustrated to see "bad shops" get so much press, when good shops are making investments in tools and training to meet the needs of the customer. If you want to "feel my pain" go to Google News and set a news alert for "shop mechanic", the filter will catch every news item from local newspapers and TV stations about shops, good and bad. It is painful some days when you see ignorant consumers, ignorant media and a shop that might be in over its head. But, it also captures the good news like a mechanic that has just turned 100.
Comment by:
Randy Stiles
1/22/2010
2:49 AM
By the way My customers are safe and will see this post! You are saying that if I Don't meet YOUR standards I don't count? WHO THE HELL ARE YOU? You Respond You and people like yo piss me off! Yes it is war but you have no class!
Comment by:
Randy Stiles
1/22/2010
2:42 AM
Mickey you are right! Paul I WISH AND PRAY they will get back to the KISS! (keep it simple stupid)!! The comment of - They are made far better today. Your words not mine are from the mouth of a 1.Moron 2.You have no clue! Chevy Fuel pumps? Hmm Chevy trucks Right rear brakes? (Disk) TSB Says ad a mud flap!! HA HA Put all Turn BK. Etc In one switch?? You get my point!? We need to police People like YOU out of the deal! It is not Us! (The dumb ass that you think we are!) Just you! Just how old are you? I never a time when a car or truck or anything maniacal did not need service! You have a chip on your !@#@ And need a woman you can boss around! Get a life!
Comment by:
Paul Airoldi
12/4/2009
10:18 AM
Thank god vehicles aren't made like they were in the "good old days". They are made far better today. As one of the "old guys" who worked on them years ago I remember how bad they could be and how often we had to service and repair them. Vehicles are, obviously, more complex today and require a much more highly trained technician, but they break less often and, when they do, at a much higher mileage/age. We really need to develop a way to police our business so that the non-professional shops cannot stay in business. All shops everywhere should be required to meet or exceed a definitive professional standard to ensure the safety of our customers and guarantee professional, competent results.
Comment by:
Mickey Speight
12/4/2009
8:13 AM
Well, It is true that vehicles are not made like they were back in the good ol' days. But, we cannot change that we just have to keep up with technology and stay up to date on,1st-diagnosing,2nd-use the best parts & technicians to properly complete a top notch job so it will bring the customers back & they will spread the word to others. Word of mouth is the best & oldest means of advertising. Thanks again, Mickey Speight
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