Recent economic signals are pointing to the long-awaited end of the economic recession. For example, the U.S. index of leading economic indicators has risen for three straight months, a sign that some analysts say predicts the start of an economic recovery in the second half of 2009.
In mid-July, aftermarketNews.com polled its readers (manufacturers and suppliers of aftermarket parts and servicing equipment) whether they were seeing any positive signs of recovery in their businesses.
According to Amy Antenora, editor of aftermarketNews.com, 34% reported positive results, with another 24% said they are expecting to see good results soon.
The breakdown of results is as follows:
Is your business starting to bounce back from the recession?
I believe my business will bounce back soon: 23.68%
My business was unaffected by the recession: 10.53%
These responses seem to be somewhat positive on the economy, which would be good news for repair shops. As you know, our industry has experienced a lot of changes recently, including the closing of dealerships and their service outlets.
How the recent “Cash for Clunkers” program will pan out for shops has yet to be seen.
Underhood Service readers/shop owners were recently asked in a random e-mail survey if, in the past six months, they have hired a technician who had recently worked at a new car dealership.
Of those asked, a little more than 15% said they had hired a former dealership tech, while 84% responded they had not.
However, when asked “Do you plan to hire such an employee?” 15% said they are considering doing so.