The American automotive industry has a big problem. A bigger than big problem. One that is significantly impacting dealership operations, customer retention and profitability. And if not resolved, the heartburn will only grow. Though dealers are aware of it, most struggle to address it.
It's the shortage of automotive technicians and the dilemma dealers face in fixing it.
Long a major pain point, it's escalating into an outright obstacle to future success. Like never before, dealers are straining to find and retain technicians to properly care for their customers and simultaneously generate profit. It seems most dealers are continuing to look into their rearview mirror to past solutions that have become mostly ineffective.
There's a national shortage of nearly 800,000 technicians, and it's expected to grow to 900,000 by 2026. In some markets, more than 30 percent of dealership service bays go unused because of the worker shortage. Interest in technician careers has declined steadily for 25 years. Incoming automotive techs from postsecondary programs declined nearly 12 percent last year alone. Meanwhile, technicians are aging out just as the service industry is expected to grow significantly in size and importance to dealerships.
I experienced this critical need firsthand during my years of working in the auto dealership business.
We need a succession plan to leverage available technician intellect and create a transfer of knowledge, passing the baton to the next generation so we can retain this wisdom within our organizations. We must also introduce the automotive industry to a new wave of young talent.