Aftermarket December/January 2023

10 AFTERMARKET DECEMBER/JANUARY 2023 BIG ISSUE www.aftermarketonline.net action was recently reflected in data released by the IMI which reported that vehicle technician salaries are on the increase – rising by 5.5% in the last six months. For years the poor salaries within the sector has proved detrimental when trying to gain and retain the best talent. Too many skilled vehicle technicians have left the industry to follow the pull of high salaries and transferred their skills to other sectors. Earlier this year, at our Talent Recharge event, we ran an interactive poll with over 200 attendees which revealed that 75% felt that recruitment had become even more difficult following the pandemic, and 45% admitted that the skills shortage had cost their business over £100,000 in the last 12 months. “Put simply though, money talks. Not only will increased wages help attract a new generation of vehicle technicians but also recognise and retain the talent we already have. So, the news from the IMI that wages are on the up is encouraging and demonstrates that a shift is underway which will put our industry in a better position for the year ahead. Retention of existing employees does however need to go further than wages alone and training objectives set at the start of the year need to be fulfilled. It is interesting that demand for the IMI electric/hybrid vehicle training courses we deliver is rapidly increasing across all areas outside of the automotive aftermarket – from councils to fleet operators and the emergency services. Even employed vehicle technicians are using their holiday time to put themselves on EV courses.“ Gavin added: “There needs to be a far more concerted effort to ensure that an aftermarket workforce holds the best possible skill set which can service and maintain all vehicle types and training promises need to be fulfilled. It shouldn’t be submerged under resource issues and concerns of downtime; Training can be delivered flexibly on the premises of any workshop and out-of-hours. The future is here, and as we enter 2023, we must create objectives which will ensure that aftermarket businesses recruit and retain the best possible talent.” Thrive Mark Blinston, Commercial Director at BM Catalysts said: “Though the ban on the sale of new petrol and diesel cars in 2030 is quickly approaching, it only affects the sale of new vehicles. Therefore, people will still be able to buy and sell used internal combustion engine-powered cars after 2030. With this reduction in demand for new cars, compounded by ongoing supply issues, the aftermarket should continue to thrive due to the aging vehicle parc that require aftermarket parts as people will continue to use and trade older vehicles rather than buying new electric vehicles. “We also hope that the price of raw materials and energy starts to stabilise. While the price of some commodities is dropping – but still dramatically above pre-pandemic levels – any reductions are currently being offset due to increases in transport, logistics, steel and labour, and currency fluctuations due to the Ukraine war and also rising inflation and interest rates. Our final hope for the new year is that recruitment bottlenecks start to ease, to allow further growth for companies currently restricted due to a shortage of workers. As the future of mobility continues to evolve with newer technologies coming through, companies need to look further afield into different sectors to find staff members, as well as investing in the next generation of technicians.” Crucial Looking at concerns for the coming year, Mark observed: “The price of raw materials, including those used to manufacture BM Catalysts products, means there’s a significant risk of continued volatility in the market going into 2023. These increased costs are being felt throughout the entire supply chain, whether it’s manufacturing, distribution or transportation, which is putting pressure on producers like ourselves, but also affecting consumers with cars requiring replacement parts being delayed from returning from the road. The uptick in costs has also led to an increase in catalytic converter thefts, with the price of precious metals far higher than it used to be – as much as 500% higher than it was in 2019 – which is a real concern for many.” Rounding up with the worldwide picture, Mark said: “Given the state of the global economy due to geopolitical and inflationary pressures it’s easy to cast a negative outlook on what we should expect next year. However, there’s plenty to look forward to across the industry with a buoyant aftermarket consistently posting record high demand for suppliers, and new Euro 7 emissions standards posing a welcome challenge as we all look to be more environmentally conscious, which is only of good to the whole world.” Challenges Andy Hamilton, CEO at LKQ Euro Car Above: Mark Blinston, Commerical Director, BM Catalysts My fears for 2023? You really couldn’t have made up the past three years’ events so I’m not going to try ”