November 2020

them. We put the battle in. “We wrote to the Chancellor of the Exchequer and we wrote to the Transport Secretary, who wrote back to us in just over a week! We then sent the responses out to our members, so they could see actually what we were doing. We were very transparent and open about it. I will say that the government has been very responsive. We pushed the Chancellor for a flexible furlough scheme, and again his response was very positive. He introduced the new flexible furlough scheme and brought it forward to July, when it was originally scheduled to take place from August. They took on board our arguments and I applaud them for that.” Online presence While the IGA has been flat-out supporting the sector through COVID- 19, the organisation has also managed to keep producing material for its membership. In September, IGA members received the Garage Guide to Online Presence, a paperback book produced in-house that shows garages how to take control of their online identity. The growth of online work providers has been seen as having created a barrier between garages and their customers. While it might not be on purpose, the result is the same. “There is a perception that we have an issue with work providers,” commented Stuart, “but that’s not the case. Our concern is the way they work. As they become stronger and more known to the consumer, they create a break between the consumer and their customer. You have got an intermediary in the middle. The garage will then start to lose its identity, in favour of the work provider.” “The Garage Guide to Online Presence covers everything garages need to promote their own identity online, whichever way they want to do it – websites, branding, social media, online reviews, it is about their online presence across the board. It is there to help garages from a beginner’s guide to a more advanced level. “This too is part of the COVID-19 situation,” added Stuart. “It is trying to give garages their own identity. We like to offer our members support and guidance in every aspect of their business." Labour rates Another area where the IGA will be providing support to the sector is through the UK Independent Garage Labour Rate Study 2020, which was about to be published as the November issue of Aftermarket went to press. Giving us a sneak-peek on the soon-to-be-unveiled findings of the study, Stuart observed: “When you look at the results of the labour rate study, in many cases garages are working for less than the net recovery rate. There are other things that have come into the equation over the years, such as work providers, increased costs and things like utilities, salaries etc. When you look at it year-on-year, the net recovery rate a garage brings in has gone down.” Yes folks, the IGA are suggesting that if you want to stay in business, you need to be making money. It sounds obvious, but if it is, why are so many garages still undervaluing what they do? “The one thing that this report absolutely defines,” observed Stuart, “is the outstanding value for money the consumer gets from an independent garage. It is unquestionable that the rates they pay are unbeatable in comparison to other repair outlets, and the abilities of an independent garage are always at a very high level. “However, our survey shows that while the costs of running a business have increased, at different varying levels, the rates of fee increase have not followed.” It has to be said, that very often a garage may have worked out their labour rate by picking a number that sounded about right, but was never realistic to begin with. If you don’t go up, you will keep falling behind. We suggested to Stuart that the level of investment needed going forward, if you take into account the government’s all-EV road to zero, and the growth of systems like ADAS, is enormous. “The level of investment needed has always been enormous,” he accurately countered. “It is very expensive to buy equipment, to dispose of chemical waste, take constant training, implement workplace legislations surrounding things like MOTs and Health & Safety, and everything else that comes with running a garage. If you look at it in the cold light of day and the cost of that, there has to be a margin of profit and a margin of cash left to stay modern. What this shows you is that garages are earning a living, but they are not making the money that they deserve to make.” Looking ahead Also as we went to press, the furlough had ended, with the slack in the system being taken up by the Job Support Scheme. Looking towards the end of the year and beyond, with the threat of rising Coronavirus levels and the impact on businesses, Stuart said: “There is pressure on every business, even our own. Children have gone back to school and the winter colds are starting; I don’t think there is a business in the country that has not been affected. “It is a challenge for any business, but I think the government are doing everything they can. There is lots of work out there at the moment and businesses can open their doors, but we don’t know if the government will ultimately be forced to put in another lockdown.” There are some positives though as far as Stuart is concerned: “Just look at it this way; The government introduced a six-month exemption of MOTs, and dropped it after four months. We are absolutely delighted that they saw this, realised it was the right thing to do, and revoked it early. We pushed very, very hard for that. “The feedback we are receiving is that most independents are absolutely flat-out. The MOT exemption has ended now, and a great number of garages are chock-a- block with MOTs and the work that surrounds them. One in three cars fail their MOT anyway, but any person that took advantage of the exemption cannot drive their car if it fails its MOT, which has generated a large amount of additional work.” Stuart concluded: “From the independent garage perspective, we are coming back together in the best way possible now. The garages have plenty of work coming in, and the people are there. In the state of affairs that we are in, that’s as good as it gets.” 10 AFTERMARKET NOVEMBER 2020 BIG ISSUE www.aftermarketonline.net Why are so many garages still undervaluing what they do? ”