by Bob Levin, Chairman/Founder Material Handling Supply, Inc.
The Lift Truck Industry is offering great opportunities to people who possess technical abilities. Not surprisingly, technicians are the backbone of this industry. We see great demand for specialists competent to deal with technical challenges. And, there is always a demand for new talent entering the field.
However, during the past 35 years, the focus has been for young people to go to college and receive a college degree. Some young people should go to college to receive an education to help them achieve their career objectives. Yet, there are many other young people who are clever and interested in technical careers. They have skills in the electrical field, making metal products, repairing machinery and so on.
A sinister force in our industry today is cutting down many excellent employees in their prime. The hidden problem is Service Management and Parts Management BURNOUT! Many dealer executives tell me the expected time on the job for service or parts managers may be only 3½ to 4 years. Way too short for these very talented people!
I have privately surveyed over 700 service and parts managers in my Service and Parts Management Workshops. About 672 (96%) said burnout was a very significant problem for each of them! The result of my survey caused me to continue looking into this unsettling situation. What follows is a summary of the responses from service management and parts management discussion workshops I conducted during my formal Dealer Management Seminars to identify the causes and possible remedies for burnout.
Responses from these managers follow, including conclusions and recommendations for Dealer Principals, Senior Executives as well as for Service Managers and Parts Managers.
Today, most dealers understand a top performing technician can be the greatest revenue producer in the business. In addition, each dollar of labor sales generates about an additional dollar in parts sales. A skillful service technician can provide more than a three-fold revenue return on wages and benefits.
Yet, why do so many dealer executives and operations managers struggle with the issue of technician recruitment? We know there is a shortage of qualified service technicians across all equipment industries: heavy-duty truck, Ag equipment, construction equipment and forklift. Dealer owners now recognize that each additional service employee, if kept busy, can generate over $110,000.00 in annual labor billing plus at least an additional $80-$100,000.00 in parts on those Repair Orders.
So, let’s look at some of the ways how successful technician recruiting it is getting done today.
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