May 2020

BY Andy Savva T he automotive industry plays a very important role in our economy and our lives. The aftersales repair sector where I have spent the majority of my working life plays an essential role in the support of this mammoth industry. There are many resources required to provide the proper service environment needed in this increasing demanding and competitive sector. These resources include the premises, equipment and of course knowledgeable and capable personnel required to perform all the services and repairs on today’s complex vehicles. Garages are far more than a place where a technician repairs a vehicle. Many support functions need to be performed efficiency and effectively to meet customer needs and growing expectations. There has never been a greater need for qualified personnel to perform these essential tasks. The interplay of all of the physical and manpower resources in automotive service forms a complex system that needs to be expertly managed and directed. The owner/service manager is the individual who is primarily responsible for orchestrating and co- ordinating the complex operations that make up the service system. High stakes Automotive aftersales service is a very complex business. In most small, medium or large garage businesses, an owner/manager is usually a jack of all trades. He or she, to be effective, must possess a wide range of knowledge and skills to address daily challenges. Necessary skills range from managing, delegating and financial understanding, to marketing and business planning, to name a few. In addition to the diversity of knowledge and skills needed, there are few industries where employees perform under more pressure than the automotive aftersales environment. The vehicle that is purchased or leased is usually the second largest investment that people will probably make in a lifetime. The sheer pound value makes the vehicle an important commodity, but a vehicle’s value goes beyond that. Not only does the average person invest heavily in his or her car, he or she depends upon a car more than any other purchase. The public’s extreme dependence on convenient transport as a key to maintaining their way of life makes keeping a car in proper running order essential to maintaining their lifestyle. Without reliable transportation you can’t get anywhere. Loss of use of your car may even result in the loss of your job – your means of income to support your family. This scenario is not rare. It applies to just about everyone you know. Now, that is high stakes! Critical The demand for vehicle service and repairs continues to grow. There continues to also be a shortage of qualified technicians and reception personnel and I believe that the shortage will continue to grow as the current population of technicians ages and retires faster than can be replaced by apprentices. The automotive aftersales industry is more than just technicians, there are critical needs in all service support positions. Independent garages range in size, however in most cities the number of independent garages is much larger than the number of dealerships, which makes it a very competitive market but also suggests there is enough to go around. Think of the number coffee shops and hair salons on our high streets. Independent garages do not have a built-in referral business compared to say a sales department from a main dealer. They cannot depend upon the consistent flow of manufacturer-paid warranty repairs. Unlike dealerships that focus on servicing only one make of vehicle, independents are not tied to any specific manufacturer. They work on multiple makes, models, and years of vehicles that come to them for service or repairs, unless they obviously specialise in one or two vehicle manufacturers as I did at Brunswick Garage. Their singular focus is customer- paid maintenance and repair work and of course MOTs. Nationally, independent garages account for more of the total service business than dealerships. In addition, they generate more than double the amount of customer-paid service of their dealership counterparts. It makes the independent sector a huge commodity to local and central government and economy. Lockdown That takes us to today’s lockdown situation, where your highly critical business may be working under huge strain, to the point where a temporary closure is necessary. Closing your business temporarily is always painful. Whether you’re the owner of a small (two or three ramps), medium (between four and six ramps) large (seven to ten ramps) garage business or even a mobile mechanic you’re going to lose all your revenue stream. You still have costs that need to be paid however. Fortunately, there is some help out there for most in the short term. You are probably one of many garages that have already closed their businesses, then chances are you’ve posted on your website and social pages informing your customers of your decision. However, simply packing up your tools and closing your doors until it’s time to re-open doesn’t feel right to me – surely there’s more you could be doing during this time. It’s time you start planning on giving your business a breath of fresh 18 AFTERMARKET MAY 2020 BUSINESS www.aftermarketonline.net MAKING THE MOST OF THE LOCKDOWN Andy Savva considers how a business can navigate the tricky territory that is life under lockdown, and find a way to use the time effectively