Collision Repair Industry Survey

Transcription

1 Collision Repair Industry Survey I-CAR Education Foundation All Rights Reserved

2 2007 Collision Repair Industry Survey Table of Contents Introduction 2 Background 4 Survey Sample 5 Survey Results 6 Business Statistics 7 Technician Statistics 16 Technician Turnover 35 Entry Level Technicians 42 Industry Opinions 51 Projections 52 Conclusions 53 Appendices I-CAR Education Foundation

3 I-CAR Education Foundation Collision Repair Industry Survey Introduction The I-CAR Education Foundation was created in 1991 to solve a problem. The collision repair industry was facing a critical shortage of quality entry-level employees. The career and technical education system was not turning out enough qualified graduates, and the industry's poor image was hampering its ability to attract the best-qualified students. The Foundation is a not-for profit organization that works to secure donations that support philanthropic and Collision Repair education activities that promote and enhance career opportunities in the Industry.. The Foundation provides the most advanced curriculum, instructor training research and related services to career and technical education., including: I-CAR s Live Curriculum (formerly Enhanced Delivery) modules are available for training with the latest information on a CD-based platform. The Industry Training Alliance allows qualifying schools to offer I-CAR points toward both the I-CAR Gold Class or Individual Platinum programs. A handbook, How to Establish and Operate a Successful Collision Repair Training Program was created to help improve vocational programs or to start new ones. This booklet is available on the Education Foundation Web site at under the Forms and Downloads section. The Smart Jobs / Smart People DVD was developed to assist Industry participants tell the Collision Industry story at career day presentations and other recruitment opportunities. Collision Repair Instructors Network (CRIN) connects instructors. Youth Apprenticeship Training CD helps set up a work-study program. Instructional Props CD assists vocational instructors. PACE (People Actively Creating Employability) allows students trained with the Advance Tech curriculum to build a portfolio or passport to demonstrate their training accomplishments to prospective employers. PACE+ST 3 helps secondary school training programs focus on certain industry-selected tasks during a student s junior year, followed by a mentored internship during the summer and advanced training senior year. The objective is to provide a well-trained entry-level technician prepared to either go to work or to a post-secondary training program I-CAR Education Foundation 2

4 Industry Surveys provide accurate measurements of the current collision repair workforce. These have been done every three years to provide solid data for activities aligned with the Foundation s mission: "To secure donations that support philanthropic and Collision Repair education activities that promote and enhance career opportunities in the Industry." Many areas of this research allow us to draw some encouraging conclusions. For example: Production collision repair technicians are paid, on average, better than comparable trades and have excellent income potential. Technicians who have recently received training, particularly I-CAR training, tend to have higher incomes. There is a large, untapped resource of collision repair business owners who are willing to actively participate in improving the quality of collision repair education in the vocational-technical schools. By providing competitive pay and benefits, technician turnover can be significantly reduced. Because of its multiple career path opportunities, the Collision Industry offers excellent job security. There are also areas that need to be improved. These include: Significant differences between operating conditions of smaller and larger collision repair businesses, including benefits offered, technician income, and employee turnover. Technicians are leaving the industry at a rate over 10 percent every year, while only half of new entry-level technicians are being hired from technical school programs. This research represents a snapshot of where the Collision Repair Industry is today and a continuing effort to discover and quantify trends. As research continues, it will tell us what the Collision Repair Industry needs to do to assure its long term health. These and other Survey results are intended to provide data that can be used to help retain current technicians, recruit new technicians, and support school-to-work programs. Technical school programs have used this data to support their existing programs, substantiate expansion, and help start new programs. The Foundation wishes to thank the many contributors and other supporters that made this progress possible. There is still much to do, which requires continual support. As a 501(c)(3) not-for-profit organization, your contributions are tax-deductible. By making a contribution, you will assist the Foundation in continually improving the quality of collision repair education I-CAR Education Foundation

5 Background The field of collision repair, like today's vehicles, has become increasingly high-tech. Quality collision repairs require technicians with more technical and academic skills than ever before. This trend is expected to continue and raises two major concerns about the future of the collision repair workforce: 1. Attracting entry-level people for tomorrow. 2. Retaining today's experienced technicians. Although collision repair technicians can earn excellent wages, enjoy job security within the trade, and have advancement opportunities within the entire Automotive Industry, it has become increasingly difficult to recruit entry-level technicians. Competition for entry-level workers, especially from other service industries, is expected to increase. Although most job demand and growth is in technical fields that do not require a degree, most young people are steered toward fouryear college degrees. A poor Industry image tends to discourage many young people from considering a career in automotive repair. This survey was designed to address such issues by: Collecting statistically valid data about the Collision Repair Industry from a representative sample of collision repair businesses. Compiling data in meaningful summaries for use in promoting careers in the Collision Repair Industry to potential and existing employees. Comparing data to previous Surveys to determine statistically significant differences and trends I-CAR Education Foundation 4

6 Survey Sample A random sample of 4,001 collision repair businesses from all 50 states was selected by an independent information provider. Information for each business included name, address, phone number, approximate number of employees, and phone book ad size. A survey form was designed to collect the information. This form is similar to the format and questions from the 2004 Survey and is shown in Appendix A. Replies were solicited by both direct mail and personal phone calls on a systematic basis to minimize sampling bias. A true cross section of the Industry was contacted by this process and 317 collision repair businesses responded with completed survey forms. Survey Sample Distributions Method No Mailed 2, % 73.5% 73.8% 77.9% Called 1, % 26.5% 26.2% 22.0% Faxed 0 0.0% 0.0% 0.0% 0.1% Total 4, % 100.0% 100.0% 100.0% Employees % 63.1% 71.0% 66.1% % 17.9% 16.2% 15.4% % 8.9% 9.2% 8.1% % 5.8% 3.0% 5.4% % 4.3% 0.6% 5.0% Ad Size None 5.1% Regular 53.9% 49.5% 50.7% 45.3% Bold 12.4% 14.6% 11.9% 14.3% Column 12.4% 18.2% 15.3% 17.7% Display 16.2% 17.7% 22.1% 22.7% I-CAR Education Foundation

7 Survey Results Surveys were tracked for return rates by method of solicitation with these results. Method Sample ---Returns--- Mailed 2, % Called 1, % Totals 4, % Survey results provide information about both the business environment and the technician workforce. With 317 businesses and over 1,300 technicians represented, a wealth of data is available. However, not every question was answered by every respondent. This report displays information for only those businesses that responded in a specific area or to a specific question. Phone contacts were important to determine the percentage of the full sample that is no longer in the retail collision repair business. Listings were determined as "Not Valid" for several reasons including: Disconnected phone. Restoration work only. Mechanical repairs only. The percentage of invalid businesses discovered by phone contact was extrapolated to the universe of collision repair businesses for approximating Industry totals. The chart below compares results from each Survey project. Collision Repair Businesses Survey Survey Survey Survey Survey Total Reported 65,553 64,442 64,212 54,744 56,292 Not Valid 18.4% 18.2% 18.1% 11.0% 16.7% Total Valid 53,505 52,719 52,610 48,730 46, I-CAR Education Foundation 6

8 Business Statistics Sales Volume The Survey form asked for annual sales volume by presenting a choice of the three categories determined in the 1995 Survey; Small shops (sales less than $300,000), Large shops (sales between $300,000 and $1 million), and Super shops (sales over $1 million). Collision Repair Businesses 60% % 40% 30% 20% 10% 0% Under $300K $300K-$1M Over $1M Annual Sales Annual Sales Volume Survey Survey Survey Survey Survey Under $300K 44.3% 35.4% 28.0% 22.3% 14.3% $300K - $1M 40.4% 41.0% 45.9% 43.3% 48.6% Over $1M 15.3% 23.6% 26.1% 34.4% 37.1% 100% 100% 100% 100% 100% I-CAR Education Foundation

9 Sales Volume The 2007 Survey form also distinguished between different sales levels of shops over $1 million annually Survey Under $300, % $300K - $1 Million 48.6% $1-2 Million 24.7% $2-4 Million 8.3% Over $4 Million 4.1% 100% 2007 I-CAR Education Foundation 8

10 Business Type Respondents selected their business type from four choices. This is the respondent s distribution, not necessarily the sample, or Industry, distribution. Small numbers for Franchised and Consolidated (Independents with multiple locations) businesses tend to make their data unreliable when sorted alone. Dealer listings have changed significantly from previous years. It has become common for new car dealer collision repair shops to have their own phone number and listing, making dealer determination less reliable. Categorizing by sales volume is a more reliable method of sorting businesses into comparable operations. Collision Repair Business Types Survey Survey Survey Survey Survey Independent 87.2% 80.8% 91.2% 76.2% 70.7% New Car Dealer 11.3% 15.5% 7.1% 21.9% 22.4% Franchised 1.5% 2.5% 0.7% 1.4% 2.5% Consolidated --- % 1.2% 1.0% 0.5% 4.4% 100% 100% 100% 100% 100% 2007 Survey Small Large Super Shops Shops Shops Independent 93.3% 79.0% 51.3% New Car Dealer 6.7% 17.0% 35.0% Franchised 0.0% 2.0% 4.3% Consolidated 0.0% 2.0% 9.4% 100% 100% 100% I-CAR Education Foundation

11 Production Area Average size of the business facility (10,034 sq. ft.) again shows an increase from previous surveys. Size generally increases with higher sales volume. All Collision Repair Businesses 50% 40% 30% 20% 10% 0% Under 2, Survey 1998 Survey 2001 Survey 2004 Survey 2007 Survey 2,500-5,000 5,001-10,000 10,001-15,000 Size (Square Feet) Over 15,000 Size in Square Feet All Small Large Super 2007 Survey Shops Shops Shops Shops Average 10,034 3,959 7,189 16,037 Under 2, % 25.0% 6.0% 0.0% 2,500-5, % 45.0% 26.1% 2.9% 5,001-10, % 27.5% 44.8% 27.9% 10,001-15, % 2.5% 19.4% 26.9% Over 15, % 0.0% 3.7% 42.3% 100% 2007 I-CAR Education Foundation 10

12 Years in Business Average reported years in business (27.5) again shows an increase from previous surveys. The distribution shows a decrease since 1995 in the percentage of newer businesses while showing a percentage increase in established businesses. The large percentage increase in businesses over 35 years is probably due to a larger proportion of new car dealers responding to both recent surveys. Collision Repair Businesses 25% 20% 15% % 5% 0% 1 to 5 6 to to to to to to 35 Over 35 Years in Business Years in Business Survey Survey Survey Survey Survey Average to % 11.9% 10.3% 7.4% 8.7% 6 to % 14.2% 13.9% 10.3% 9.3% 11 to % 18.1% 12.6% 13.1% 9.3% 16 to % 14.8% 18.7% 14.3% 11.3% 21 to % 12.8% 14.6% 14.5% 11.6% 26 to % 9.9% 12.8% 13.5% 18.6% 31 to % 5.1% 4.8% 5.6% 10.6% Over % 13.2% 12.3% 21.3% 20.6% 100% I-CAR Education Foundation

13 Years in Business 2007 All Small Large Super Survey Shops Shops Shops Shops Average to 5 8.7% 4.7% 9.9% 8.6% 6 to % 16.3% 7.9% 8.6% 11 to % 7.0% 11.3% 7.0% 16 to % 9.3% 8.6% 15.5% 21 to % 11.6% 12.6% 10.3% 26 to % 27.8% 21.9% 11.2% 31 to % 9.3% 10.6% 11.2% Over % 14.0% 17.2% 27.6% 100% 2007 I-CAR Education Foundation 12

14 Management Practices Trends in various management practices are shown by comparing results from all five surveys. Written guidelines have increased since Performance review figures remain relatively steady. Management Practices Written employment guidelines given to new technicians 31.4% 35.0% 37.7% 41.8% 41.7% Formal employee performance review 58.3% 60.9% 58.5% 54.5% 59.5% Management Practices All Small Large Super 2007 Survey Shops Shops Shops Shops Written employment guidelines given to new technicians 41.7% 32.5% 38.3% 50.0% Formal employee performance review 59.5% 42.5% 58.4% 67.9% Management practices show statistically significant differences by sales volume I-CAR Education Foundation

15 Employees The average number of employees reported has again increased, consistent with a trend toward larger businesses noted in the average sales breakout. Reported Number of Employees Production Management Support Total Reported Number of Employees All Small Large Super 2007 Survey Shops Shops Shops Shops Production Management Support Total I-CAR Education Foundation 14

16 Production Employees In the 2007 Survey, almost 33 percent of businesses reported six or more production employees, continuing a trend seen in previous Surveys. Reported Number of Production Employees One 14.1% 10.2% 9.1% 7.7% 6.3% Two 20.9% 19.6% 17.7% 19.2% 15.8% Three 18.5% 20.6% 18.2% 14.5% 17.7% Four 15.3% 12.5% 13.3% 13.2% 16.1% Five 10.7% 11.8% 12.0% 13.2% 11.5% 6 or more 20.5% 25.3% 29.7% 32.2% 32.6% Total 100% 100% 100% 100% 100% I-CAR Education Foundation

17 Technician Statistics Technician Age Collision Repair Technicians 25% 20% 15% % 5% 0% Under Over 65 Age Groups 2007 I-CAR Education Foundation 16

18 Past surveys have shown a decline in technicians after age 40 and that trend continues. The above charts show a general flattening of the curve with fewer technicians in the year range and relative increases in year range. Workforce Age Distribution All U.S. All Small Large Super 2007 Survey (2006)* Shops Shops Shops Shops Under % 4.8% 9.4% 6.8% 2.4% 21 to % 11.8% 12.9% 13.8% 9.7% 26 to % 25.6% 24.7% 25.3% 25.6% 36 to % 28.6% 23.5% 24.9% 32.9% 46 to % 21.5% 16.5% 21.5% 22.2% 56 to % 7.3% 11.7% 7.1% 6.9% Over % 0.4% 1.3% 0.6% 0.3% 100% *U.S. male workforce, all industries, U. S. Bureau of Labor Statistics Even though technician age groups over 40 have again increased, their percentage of the technician workforce is less than similar age groups in the entire U.S. workforce. All U.S. All 2007 Survey (2006)* Shops Diff. Under % 4.8% +0.8% 21 to % 11.8% +2.2% 26 to % 25.6% +3.5% 36 to % 28.6% +4.4% 46 to % 21.5% -1.6% 56 to % 7.3% -5.8% Over % 0.4% -3.5% 100% *U.S. male workforce, all industries, U. S. Bureau of Labor Statistics I-CAR Education Foundation

19 Technician Age Average age of technicians has increased over the Survey studies, reflecting the decrease in lower age groups. All Technicians Survey Survey Survey Survey Survey Average Age Technician Gender Women are still showing a minor presence as collision repair technicians, detailers, or helpers. In each survey a few women are reported, but in numbers too small to determine a trend other than as a minor presence. All Technicians Survey Survey Survey Survey Survey Females 1.1% 0.9% 0.7% 0.6% 0.2% 2007 I-CAR Education Foundation 18

20 Academic Education All Collision Repair Technicians Some College College Graduate Some High School High School Graduate Academic Education All Small Large Super Shops Shops Shops Shops Some high school 11.9% 15.9% 13.4% 10.1% High school graduate 73.9% 62.1% 69.9% 79.1% Some college 10.4% 17.1% 12.1% 8.0% College graduate 3.8% 4.9% 4.6% 2.8% 100% Technician Education Survey Survey Survey Survey Survey High School Graduate or more 87.0% 85.9% 86.5% 88.5% 88.1% I-CAR Education Foundation

21 Academic Education About 88 percent of technicians have completed high school, consistent with the U.S. population rate of 85 percent (Males, 2005 U.S. Census data) and previous surveys. 14 percent of all technicians reported some college studies. This distribution is similar to previous Surveys, including smaller shops that show a higher percentage of technicians with college work. Technician Education All Small Large Super Program: Shops Shops Shops Shops High school 25.3% 32.9% 23.5% 26.1% Post-secondary 23.8% 20.3% 22.2% 25.6% Don t know 50.9% 46.8% 54.3% 48.3% 100% Businesses reported on their technicians technical school experience, answering for half of their technicians with Don t Know. Those whose technical school experience is known are equally divided between secondary and post-secondary programs. All Collision Repair Technicians Technical school program experience Don't know High school Post-secondary 2007 I-CAR Education Foundation 20

22 Technician Training in the Last Two Years All Small Large Super Shops Shops Shops Shops Technical School 4.8% 3.4% 4.6% 5.2% I-CAR 40.9% 9.2% 29.4% 56.0% Vehicle Manuf. 12.3% 3.4% 10.5% 15.2% Equip. Manuf. 12.7% 11.5% 7.4% 17.9% Paint 18.9% 28.7% 19.3% 17.4% Don t Know 12.5% 12.6% 17.0% 8.4% None 22.9% 44.8% 31.5% 11.4% Nearly 23 percent of technicians reported no training in the last two years from I-CAR, vehicle makers, vendors, or others. Another 12.5 percent answered Don t Know. Some technicians selected more than one training supplier. Larger businesses show more training overall, especially I-CAR training. Technician Training Survey Survey Survey Survey Survey I-CAR 34.1% 34.9% 37.6% 41.1% 40.9% None/Don t Know 29.9% 31.0% 38.1% 29.7% 35.4% I-CAR Education Foundation

23 Technician Certification ASE Certified Technicians % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% All Shops Small Shops Large Shops Super Shops Reported ASE Certified Technicians All Small Large Super Shops Shops Shops Shops % 18.5% 25.9% 42.3% % 25.1% 32.6% 45.3% % 19.5% 35.2% 41.9% % 17.2% 26.8% 39.0% ASE Certification is reported for almost one of every three technicians. Technicians in larger businesses show a higher percentage of ASE certification I-CAR Education Foundation 22

24 Technician Income Pay Plans All Collision Repair Technicians Flat Rate Team Plan Hourly + Bonus Hourly Only Pay Plan All Small Large Super Shops Shops Shops Shops Flat Rate 54.3% 25.6% 40.3% 69.9% Hourly Only 35.4% 61.5% 47.0% 22.1% Hourly + Bonus 8.5% 12.9% 11.6% 5.3% Team Plan 1.8% 0.0% 1.1% 2.7% 100% Pay plans show similar overall patterns to the 2004 Survey, with slightly over half having a compensation plan based on flat rate. Larger shops show a significantly higher percentage of flat rate plans I-CAR Education Foundation

25 Technician Income Although there is a wide distribution of annual income amounts, average income for production technicians tends to increase with business sales volume. Income figures shown are for production technicians over 20 years old. Annual Technician Income All Shops Large Shop Small Shop Super Shop 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% -5.00% Under $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $65K Over $65K Annual Income Distribution All Small Large Super Shops Shops Shops Shops Under $15, % 0.0% 0.3% 0.2% $15,000 - $25, % 20.6% 5.2% 1.0% $25,001 - $35, % 26.5% 20.2% 7.6% $35,001 - $45, % 29.4% 26.4% 16.8% $45,001 - $55, % 17.6% 25.2% 23.5% $55,001 - $65, % 0.0% 10.7% 22.4% Over $65, % 5.9% 12.0% 28.5% 100% 2007 I-CAR Education Foundation 24

26 Technician Income Over time, average incomes are increasing with less lower incomes and more of the higher incomes. With the percentages of the highest bracket rising, income potential as shown by the top 10 percent of incomes also increases. Compared to the Consumer Price Index (CPI), technician earnings have increased faster than inflation for each study where CPI data is available. Annual Technician Income 35% 30% 25% 20% % 10% 5% 0% Under $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $65K Over $65K Technician Income Survey Survey Survey Survey Survey Average 32,960 37,189 41,268 44,819 51,312 Top 10% 62,566 66,351 72,230 76,782 88,460 Technician Income Survey Survey Survey Survey Survey Average 32,960 37,189 41,268 44,819 51,312 Adjusted w/ CPI 32,960 35,252 38,301 40,853 N/A Source: U.S. Bureau of Labor Statistics I-CAR Education Foundation

27 Technician Income Average technician income varies by both work position and sales volume. The first five classifications were selected by respondents for each production technician. Line 6 is the summary for all production technicians. All of these figures are for production technicians over 20 years old. Annual Income Averages All Small Large Super Classification Shops Shops Shops Shops 1. Sheet Metal $48,267 $31,125 $39,339 $53, Structural 46,794 16,000 44,529 52, Both 53,478 36,000 45,182 57, Refinish 55,460 37,067 47,031 61, Combination 48,120 39,700 45,736 54, All Above 51,312 36,426 44,695 56,694 Support positions were also identified for workers in addition to the production technicians listed above. Lines 7 thru 9 show those income averages. Annual Income - Other Positions All Small Large Super Classification Shops Shops Shops Shops 7. Mechanical $39, $34,711 $43, Detail 22,700 15,000 20,367 25, Helper 24,426 20,600 23,727 25, I-CAR Education Foundation 26

28 Technician Income National average incomes for several other skilled trades are presented for comparison to reported Collision Repair Technician income. Some trade income averages decreased over the three year span. These results show that income can be an attraction to the Collision Repair Industry. National Averages* Diff. Collision Repair Technician $44,819 $51, % Tool & Die Maker 41,671 44, % Electronics Technician $44,283 43, % Chemical Technician 38,261 42, % Welder 33,924 36, % Medical Lab Technician 31,701 34, % Carpenter (Gen/Maint) 32,202 34, % Machinery Mechanic 34,786 33, % Heavy Truck Driver 31,860 31, % *Other trades figures are from the Economic Research Institute s 2006 Geographic Reference Report Collision Repair Technician income is highly dependent on individual skills, training, and local business operations. Investments in tools, equipment, and education can all increase productivity and income potential. Income Potential - Collision Repair Average - All $51,312 Average - Top 10% $88,460 Range $10,000 - $150, I-CAR Education Foundation

29 Technician Income Income tends to increase with on-going education. Technicians with some training in the past two years reported an average income 16.5 percent higher than those without training. Those with I-CAR training reported an average income 19 percent higher than those with no training. These results are similar to the 2004 Survey. Technician Income Based on Training in the Past Two Years Without Training With Training All Shops Small Shops Large Shops Super Shops Average Income for Production Technicians Over 20 Years Old Who Received Training in the Past Two Years: All Small Large Super Shops Shops Shops Shops Without Training $45,515 $30,287 $42,792 $53,403 With Some Training 53,037 40,900 45,735 56,944 With I-CAR Training 54,269 32,500 45,412 57,612 Without ASE Certification 49,874 32,804 44,190 55,997 With ASE Certification 53,966 53,333 45,904 57, I-CAR Education Foundation 28

30 Technician Benefits After general increases shown in the first surveys, reported benefits have decreased slightly. Individual benefits vary greatly, with significant differences among different size shops. Frequency of Benefits Offered by Survey Year Paid Vacations 68.1% 82.5% 84.0% 90.6% 86.5% Health Insurance 54.2% 59.4% 61.7% 71.4% 69.6% Life Insurance 25.0% 29.6% 24.1% 31.5% 30.4% Tuition Reimbursement 25.2% 23.1% 26.8% 25.4% 22.1% Retirement Program 17.6% 31.6% 34.3% 45.1% 39.7% Profit Sharing 11.6% 14.3% 13.5% 11.3% 10.9% None 19.0% 14.7% 9.8% 6.7% 8.7% I-CAR Education Foundation

31 Frequency of Benefits Offered by Shop Sales Volume 2007 Small Large Super Survey Shops Shops Shops Paid Vacations 86.5% 64.3% 85.5% 95.7% Health Insurance 69.6% 38.1% 59.2% 94.0% Life Insurance 30.4% 14.3% 17.8% 52.1% Tuition Reimbursement 22.1% 7.1% 19.7% 30.8% Retirement Program 39.7% 11.9% 30.9% 60.7% Profit Sharing 10.9% 7.1% 6.6% 17.9% None 8.7% 28.6% 9.2% 0.9% 2007 I-CAR Education Foundation 30

32 Technician Benefits Number of Benefits Offered 30% 25% 20% 1995 Survey 1998 Survey 2001 Survey 2004 Survey 2007 Survey 15% 10% 5% 0% None One Two Three Four Five Six Number of Benefits Offered by Survey Year Survey Survey Survey Survey Survey None 19.0% 14.6% 9.8% 6.7% 8.7% One 20.8% 20.0% 21.7% 14.8% 16.0% Two 20.8% 19.8% 22.9% 21.2% 23.7% Three 22.4% 17.0% 19.0% 23.9% 20.8% Four 10.2% 16.8% 15.3% 22.6% 21.8% Five 5.9% 8.6% 8.3% 9.1% 7.4% Six 0.9% 3.2% 3.0% 1.7% 1.6% 100% I-CAR Education Foundation

33 Number of Benefits Offered by Shop Sales Volume 2007 Small Large Super Survey Shops Shops Shops None 8.7% 28.6% 9.2% 0.9% One 16.0% 23.8% 24.3% 2.6% Two 23.7% 31.0% 28.9% 14.5% Three 20.8% 9.5% 17.1% 29.9% Four 21.8% 7.1% 15.8% 34.2% Five 7.4% 0.0% 3.9% 14.5% Six 1.6% 0.0% 0.8% 3.4% 100% 2007 I-CAR Education Foundation 32

34 Technician Supervision The data shows that providing written guidelines has increased over previous surveys while performance reviews have remained steady. Larger businesses tend to have a greater frequency of these formal procedures. Technician Supervision 70% 60% 50% 40% 30% 20% 1995 Survey 1998 Survey 2001 Survey 2004 Survey 2007 Survey 10% 0% Written Guidelines Performance Review Survey Survey Survey Survey Survey Written Employment Guidelines Given to New Technicians: 31.4% 35.0% 37.7% 41.8% 41.7% Frequency of Employee Performance Review: None 41.2% 41.7% 41.5% 45.5% 40.5% 6 Months 31.2% 26.5% 27.9% 17.8% 17.4% 1 Year 27.6% 31.8% 30.6% 36.7% 42.1% 100% I-CAR Education Foundation

35 Technician Supervision 2007 Survey All Small Large Super Shops Shops Shops Shops Written Employment Guidelines Given to New Technicians: 41.7% 32.5% 38.3% 50.0% Frequency of Employee Performance Review: None 40.5% 57.5% 41.6% 32.1% 6 Months 17.4% 20.0% 18.8% 14.7% 1 Year 42.1% 22.5% 39.6% 53.2% 100% 2007 I-CAR Education Foundation 34

36 Technician Turnover Similar to previous surveys, over half of technicians, almost 58 percent in the 2007 study, have been with their current employer for 5 years or less. The percentage in the 2 to 5 year range has decreased while the 1 year or less range has increased. Number of Years With Current Employer Survey Survey Survey Survey Survey 1 or Less 23.7% 22.8% 27.7% 20.3% 23.3% % 39.3% 33.9% 37.9% 34.3% % 19.0% 18.4% 18.7% 19.1% % 9.7% 9.5% 9.4% 8.4% % 4.8% 5.7% 6.3% 4.9% More than % 4.4% 4.8% 7.4% 10.0% 100% 5 or Less 61.0% 62.1% 61.6% 58.2% 57.6% 6 or More 39.0% 37.9% 38.4% 41.8% 42.4% I-CAR Education Foundation

37 Number of Years With Current Employer All U.S. All Small Large Super (2006)* Shops Shops Shops Shops 1 or Less 21.8% 23.3% 23.5% 24.7% 22.3% % 34.3% 23.5% 33.6% 36.1% % 19.1% 12.9% 18.5% 20.4% % 8.4% 11.8% 8.8% 7.5% % 4.9% 12.9% 3.5% 5.2% More than % 10.0% 15.4% 10.9% 8.5% 100.0% * Males over 20 years old 2007 I-CAR Education Foundation 36

38 Collision Repair Technician Turnover Stayed on Job 73% Left for Another Shop 16% Left Tech Trade 11% Technicians that left their job in the last 12 months Total that left their Job 23.2% 22.0% 25.6% 24.3% 27.5% Left for another shop 13.8% 12.6% 14.3% 15.3% 16.4% Left the Industry 4.9% 5.9% 6.8% 4.5% 6.3% Left for a related industry job 3.1% 2.5% 3.3% 3.5% 3.3% Retired from the workforce 1.1% 1.0% 1.1% 1.1% 1.5% Total that left the trade 9.2% 9.4% 11.2% 9.1% 11.1% Expected retirements in the next 12 months: 1.0% 1.5% 1.1% 1.6% 2.6% I-CAR Education Foundation

39 Almost 28 percent of current technicians left their job in the past 12 months. This is more than one out of every four technicians. Almost one out of every six technicians, or 16.4 percent, left their job for a similar position in another shop, higher than the 15.3 percent reported in This is turnover within the industry and, while disruptive to an individual shop, does not increase or decrease the pool of available technicians. Industry turnout is a greater concern. In the last 12 months, 21,500 technicians, or 11.1 percent, left the trade, higher than the 9.1 percent reported in 2004 and similar to the 2001 Survey. Collision Repair Technician Turnout Survey Year Technicians that Left the Trade 19,467 19,620 24,119 17,895 22, % 9.4% 11.2% 9.1% 11.1% Those technicians that were reported to leave for a different job outside the industry totaled 6.3 percent. Another 3.3 percent left their technician position for an industryrelated job, such as estimator, manager, or shop owner. In addition, 1.5 percent of technicians retired from the workforce and an additional 2.6 percent are expected to retire next year. Both retirement figures are higher than in Collision Repair Technicians in the Last 12 Months Total Technicians 193,263 Technicians That Left Their Job 53, % Turnover (within the trade) 31, % Turnout (left the trade) 21, % Different Job Outside Industry 12, % Related Job Within Industry 6, % Retired from Workforce 2, % 2007 I-CAR Education Foundation 38

40 Technician Turnover and Turnout in the Last 12 Months All Shops 22.0% 25.6% 24.3% 27.5% Small Shops 26.3% 34.2% 28.3% 25.9% Large Shops 26.5% 29.4% 29.1% 35.2% Super Shops 16.9% 20.4% 20.6% 23.4% No Benefits 27.0% 59.3% 75.0% 45.2% 1-2 Benefits 25.1% 24.7% 26.5% 26.7% 3-4 Benefits 18.4% 23.6% 21.9% 26.7% 5-6 Benefits 18.6% 19.5% 14.1% 24.1% Avg. Years in this Shop: With No Training With Some Training Turnover and Turnout are showing some consistency through the years, though increasing slightly. Up until this survey, larger shops have shown less turnover. Unusual variances may be due to the smaller number of small shops reporting. It is important to note that Turnover and Turnout tend to decrease as technician benefits increase. Also, technicians that reported some training in the last two years show an average of one-half year longer tenure in their current shop I-CAR Education Foundation

41 Current Technicians were Hired From: Survey Survey Survey Survey Other Collision Business 61.8% 64.4% 64.3% 61.0% Outside the Industry 18.8% 17.9% 21.1% 9.5% Auto Related Business 11.6% 11.1% 7.4% 6.3% Technical School 7.8% 6.6% 7.2% 7.1% First Job % Don t Know % 100% Over three of every five current production technicians were hired from another collision repair business, similar to the 2004 Survey. One-third were hired from outside the Industry, from an automotive-related business, or from a technical school I-CAR Education Foundation 40

42 Current Technicians were Hired From: 2007 Small Large Super Survey Shops Shops Shops Other Collision Business 61.0% 44.6% 53.8% 69.5% Outside the Industry 9.5% 9.6% 11.3% 7.9% Auto Related Business 6.3% 12.0% 7.4% 4.6% Technical School 7.1% 3.7% 8.5% 6.4% First Job 10.9% 24.1% 12.1% 7.9% Don t Know 5.2% 6.0% 6.9% 3.7% 100% Larger shops appear to do less outside recruiting, having hired a larger percentage from other repair facilities I-CAR Education Foundation

43 Entry Level Technicians Entry-level New Hires New technicians enter the Industry from three different sources: A different industry, such as food service, or first entering the workforce. A related industry, such as auto sales, auto parts, or tire dealers. An automotive technical training school. Current Technician Workforce Approximate number of working Technicians 193, % New Technicians Reported in the Last 12 Months Hired from outside the Collision Repair Industry 8, % Hired from a related Automotive Industry job 3, % Hired from a technical training school 10, % Total reported entering the Industry 21, % Already left the industry -12, % Net new technicians entering the industry 9, % If available, how many more would you have hired? 27, % Almost half of shop owners (45 percent), said they would have hired at least one more technician, significantly higher than the 33 percent reported in the 2004 Survey I-CAR Education Foundation 42

44 Entry-level New Hires Of the 21,852 new technicians hired in the past year, 10,339, or 47 percent, were hired from technical training schools. To make up this shortfall, over half were hired from other sources. New Technicians Entered The Industry From: Outside the Industry 38% Auto Related Industry 15% Technical School 47% New Technicians Entered From: Survey Survey Survey Survey Outside the Industry 46.2% 51.7% 37.3% 38.2% Auto Related Industry 26.4% 26.0% 26.0% 14.5% Technical School 27.4% 22.3% 36.7% 47.3% 100.0% The 2007 Survey once again shows an increase in the percentage of new entry-level technicians being hired from technical school programs I-CAR Education Foundation

45 New Technicians Entering the Industry From: 2007 Small Large Super Survey Shops Shops Shops Outside the Industry 38.2% 60.0% 45.7% 27.7% Auto Related Industry 14.5% 10.0% 10.9% 19.3% Technical School 47.3% 30.0% 43.5% 53.0% 100.0% Already Left Industry -55.9% -60.0% -63.0% -48.2% Percent of all net new hires: 100.0% 5.4% 49.7% 44.9% Percent of shops that would hire at least one more tech: 44.9% 22.2% 45.8% 52.1% Smaller shops tend to hire more new, entry-level technicians from outside the industry, while the largest shops tend to hire them from technical schools and keep more in the industry. Over half of the largest shops reported that they would hire at least more technician, if available I-CAR Education Foundation 44

46 Entry-level Expectations An entry-level technician can be defined as a person who has not previously earned technician wages on a full-time basis in the Collision Repair Industry. People who have worked part time or as co-op students were classified as entry-level. Survey respondents were asked about their expectations when hiring entry-level technicians with the following results: What would you expect to pay an average inexperienced entry level technician? What would you expect to pay an average experienced production technician? $405 / week $838 / week The Survey shows that entry level technicians can expect earnings that are approximately one half of the average production technician s pay, about $10.13 per hour for a forty hour work week. In how many years would you expect an inexperienced entry level person to become a fully productive technician? Opinions of two years, three years, and five years were each given a little over 24 percent of the time. The average answer was 3.6 years, identical to the 2004 Survey and slightly higher than the 1998 Survey average of 3.4 years. How Long for an Entry-level Person to Become a Fully Productive Technician? 40% 30% 20% 10% 0% One Two Three Four Five Six + Number of Years I-CAR Education Foundation

47 Entry-level Expectations Technical training programs, in order to be effective, need to know what knowledge and which skills are expected from their graduates. This is determined by the local collision repair market according to factors including the area unemployment rate, competition from other trades, and general level of equipment used in local shops. Communication is usually through an advisory committee, a forum for both educators and employers to shape curriculum and allocate resources to meet the needs of their market. Reports of participation on technical school advisory committees have varied through the years covered by the study and are currently at a high of 19.1 percent. However, 52 percent of all respondents, another all-time high amount, expressed a willingness to serve, indicating there is still a large untapped potential for participation. Technical School Advisory Committee Participation 70.0% 60.0% 50.0% 40.0% Currently a Member Willing to Serve 30.0% 20.0% 10.0% 0.0% All Shops Small Shops Large Shops Super Shops Advisory Committee Participation Currently a member 13.7% 16.1% 12.8% 17.2% 19.1% Willing to Serve 42.3% 43.9% 46.6% 45.8% 52.1% 2007 I-CAR Education Foundation 46

48 Entry-level Expectations Survey respondents indicated which tasks they would expect an entry-level person from a technical training school to be able to perform with very little supervision. This chart provides a summary from a variety of business sizes and market areas. Local needs could be different. Number of Tasks Selected Average Number Selected I-CAR Education Foundation

49 Entry-level Expectations Which tasks would you expect technical training school graduates to do with very little supervision? (Frequency that each task was selected) Survey Survey Survey Survey Survey R&R Bolted Parts 94.6% 96.2% 96.9% 98.2% 97.7% Prep for Paint 84.3% 89.8% 92.8% 87.4% 92.4% Repair Metal Dents 65.6% 77.0% 78.8% 82.8% 85.5% Final Detailing 77.3% 78.0% 78.8% 79.5% 76.9% Use MIG Welder 49.1% 68.4% 70.8% 72.6% 76.9% Repair Plastic 41.9% 52.7% 57.0% 66.9% 68.6% R&R Welded Parts 41.2% 46.3% 45.0% 56.2% 55.4% Set Up & Measure 26.4% 35.4% 37.1% 47.4% 47.2% Apply Top Coats 31.3% 30.9% 36.8% 47.9% 43.6% Replace Mechanical Parts 35.1% 34.5% 34.3% 45.9% 38.0% Repair Suspension Systems 21.6% 23.2% 20.2% 31.5% 28.4% Structural Straightening 23.6% 17.7% 21.0% 29.0% 21.8% Repair Electrical Systems 13.9% 12.6% 10.0% 20.3% 14.5% Number of Tasks Selected Survey Survey Survey Survey None 0.0% 0.8% 1.0% 0.0% 1 to % 12.1% 12.4% 9.2% 4 to % 35.9% 23.9% 26.4% 7 to % 33.5% 33.0% 43.6% 10 to % 17.7% 29.7% 20.8% 2007 I-CAR Education Foundation 48

50 Entry-level Expectations The Collision Repair Industry does not currently have a uniform plan for apprentice, co-op, or work study programs, although 65 percent of all respondents indicated a willingness to support such a program. Willing to Sponsor Apprentice, Co-op, or Work Study Student % 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% All Shops Small Shops Large Shops Super Shops Willing to Sponsor an Apprentice, Co-op, or Work-Study Student Survey Year % 53.2% 58.2% 57.9% 64.3% Willing to Sponsor an Apprentice, Co-op, or Work-Study Student 2007 Survey All Small Large Super Shops Shops Shops Shops 64.3% 67.5% 59.2% 70.9% I-CAR Education Foundation

51 Technical and Career Education Respondents answered questions about technical schools for collision repair in their area. This is a summary of their perceptions about those programs. A little over half believe they have such a program. Some may not be aware of a collision repair training program in their area and answered No. Secondary Post-Secondary Frequency of Yes Answers (High School) (College Level) Is there a collision repair training program in your area? 53.2% 57.2% Does anyone from your facility participate on an advisory committee at the school? 22.6% 17.1% Is the program using I-CAR curriculum? 63.2% 78.5% Have you hired entry-level technicians from this school? 52.9% 55.6% Please rate each training program. 1. Very Good 8.8% 11.3% 2. Good 28.9% 40.9% 3. OK 43.0% 37.3% 4. Poor 15.8% 9.6% 5. Very Poor 3.5% 0.9% Average Two previous surveys also asked for technical school training program ratings, although not separated into secondary and post-secondary schools. These are shown below along with the combined rating for Survey Year Average Rating I-CAR Education Foundation 50

52 Industry Opinions What is the most important thing we could do to help our industry attract and retain enough quality technicians? Answers to this open-ended question were categorized into the most common topics and logical groupings with the following results. Financial Comments Education Comments Increase Pay 18.1% Improve Technical Education 7.8% Increase Labor Rates 28.9% Improve I-CAR Classes 6.8% Increase Benefits 2.5% Develop Work/Study Programs 3.9% Tuition/Tool Assistance 0.0% Improve Work Ethic 0.5% Increase Repair Times 2.0% Train to Specific Specialties 0.5% Total Financial Comments 51.5% Total Education Comments 19.5% Recruitment Comments Other Comments Recruiting Assistance 5.9% Improve Image of Industry 11.8% Help Shops Work with Schools 0.5% Improve Work Environment 1.5% Career Day Assistance 0.0% License/Certify Techs 0.5% Help with Mgmt. Training 0.0% Industry Must Work Together 4.9% Job Placement Service 1.0% Set Standard Procedures 2.9% Total Recruitment Comments 7.4% Total Other Comments 21.6% Most comments, almost 52 percent, concern financial issues, significantly higher than nearly 44 percent of comments in Most Important Comments Survey Survey Survey Financial 49.7% 43.7% 51.5% Education 20.1% 26.3% 19.5% Recruitment 7.6% 9.2% 7.4% Other 22.6% 20.8% 21.6% I-CAR Education Foundation

53 Projections Workforce Percentage by Age Survey Survey Survey BLS* years old 3.0% 2.5% 2.7% 4.1% years old 11.7% 11.1% 10.0% 9.9% years old 29.7% 25.3% 25.2% 23.2% years old 33.2% 33.0% 27.9% 21.8% years old 17.4% 20.6% 23.6% 22.4% years old 4.5% 6.6% 9.6% 14.1% Over 64 years old 0.5% 0.9% 1.0% 4.5% * U.S. Bureau of Labor Statistics projection (males only) Based on forecasts for the U.S. workforce as a whole, older age groups are expected to increase. As the Industry evolves into larger businesses that provide more benefits and higher incomes, older, more experienced technicians may see more advantages for staying with, or returning to, collision repair. This may become a partial solution for retaining a qualified workforce. Collision Technician Workforce Totals Survey Year * Number of Techs 209, , , , , ,000* Techs Leaving 19,500 19,600 24,100 17,895 21,500 18,000* Percent 9.3% 9.4% 11.2% 9.0% 11.1% 8.1%* * projected U.S. Dept. of Labor Even with the decreasing collision repair technician workforce over the last few years, collision repair technician jobs are expected to increase at a one percent annual rate according to the U.S. Department of Labor. Using an average of nine percent for technicians leaving the workforce and an average one percent increase in jobs, the need for new technicians would average approximately 20,000 each year. An eleven percent rate of leaving the trade would require 24,000 new technicians each year I-CAR Education Foundation 52

54 Conclusions The collision repair industry is predominantly independent businesses that continue to decrease in number while increasing in average size, number of employees, and sales volume. Collision repair businesses have not, on average, increased technician benefits in the last three years. The number of production technicians has decreased overall. The average age of technicians continues to increase, with smaller percentages in the younger age ranges. Both technician turnover within the industry and technician turnout, those leaving the industry, have increased. Current and expected retirements are also increasing. Average technician income has increased over the last three years, is still higher than most comparable trades, and averages over $85,000 for the top 10 percent. Technicians with recent training and/or ASE certification average significantly higher incomes. A higher percentage, approximately 47 percent, of new technicians are being hired from technical schools, but more than half of all entry-level technicians, at 56 percent, are leaving the trade within their first year. Expectations for collision repair skills of technical school program graduates have remained fairly steady. Participation on technical school advisory committees has increased, from 17 percent to 19 percent, and the percent of those willing to serve has also increased to over half, or 52 percent of respondents. The percent of collision repair businesses that would be willing to sponsor an apprentice, co-op, or work study student increased to 64 percent in 2007 from 58 percent in I-CAR Education Foundation

55 Appendix A Survey Forms

56 Appendix A - Survey Forms

57 Appendix A - Survey Forms

58 Appendix A - Survey Forms

59 Appendix B Standard Reports i. Sample Distribution Report ii. Response Report iii. Response by Contact Type 1. Collision Repair Facility Demographics* 2. Collision Repair Facility Management* 3. Collision Repair Technician Demographics* 3a. Collision Repair Technician Age Forecast 4. Collision Repair Technician Profiles* 4a. Collision Repair Technician Statistics 4b. Collision Repair Technician Income Distributions 4c. Collision Repair Technician Years in Shop 5. Entry Level Technician Data 6. Collision Repair Technician Turnover 6a. New Collision Repair Technicians - All 6b. New Collision Repair Technicians By Sales 7. Survey Sample Results 8. Survey Results Distribution 9. Collision Repair Technician Income 9a. Technician Income by Training 9b. Technician Income by Shop Sales 10. Collision Repair Technician Shortfall 11. Technician Training 11a. Technician Turnover 12. Independent and Dealer Comparisons 13. Technician Income by City Population 14. Collision Repair Facility Size Categories 15. Industry Comments Summary 15a. Industry Comments (Sample Page) 16. Technical School Information 16a. School Program Comments (Sample Page) 17. Entry Level Technician Turnover Comments (Sample Page) 18. U.S. Census Bureau Age / Benefits 19. U.S. Census Bureau Job Tenure * - Includes reports by shop sales volume

60 I-CAR Education Foundation Collision Repair Industry Survey Sample Distribution Report Number in Sample 4001 Mailed % Receive % Called % Refused 1 0.0% Faxed 0 0.0% Not B/Shop % Other 0 0.0% Invalid % Business Type New Car Dealers % Independents Employees Ad Size % None % % Regular % % Bold % % Column % % Display % Requested More Information 2007 Results % 2004 Results % Foundation % 7/11/2007

61 Collision Repair Industry Survey Response Report Count Received Refused Not B/Shop Invalid Total % 1 0.0% % % Mailed % 0 0.0% % % Called % 1 0.1% % % I-CAR Region Northeast % 1 0.1% % % Southeast % 0 0.0% % % So. Central % 0 0.0% % % No. Central % 0 0.0% % % Western % 0 0.0% % % So. Pacific % 0 0.0% % % Employees % 1 0.0% % % % 0 0.0% % 8 1.2% % 0 0.0% 8 2.3% 4 1.1% % 0 0.0% 7 3.3% 0 0.0% % 0 0.0% 5 3.3% 1 0.7% Ad Size None % 0 0.0% % % Regular % 0 0.0% % % Bold % 1 0.2% % 6 1.2% Column % 0 0.0% % 8 1.6% Display % 0 0.0% 9 1.4% 3 0.5% 7/11/2007

62 Collision Repair Industry Survey Response by Contact Type Count Receive Refused Not B/Shop Invalid Total % 1 0.0% % % Mailed % 0 0.0% % % Called % 1 0.1% % % Response by Mailing Type Mailed Once % 0 0.0% % % Mailed Twice % 0 0.0% 2 0.2% 1 0.1% Response by Phone Call Type Call Only % 1 0.2% % % Call and Mail Twice % 0 0.0% 0 0.0% 0 0.0% Response by Phone Call Notes Said Yes! or OK! % 0 0.0% 0 0.0% 0 0.0% Too Busy or Rude % 0 0.0% 0 0.0% 0 0.0% Left Message % 0 0.0% 3 3.3% 0 0.0% Secretary Answered % 0 0.0% 0 0.0% 0 0.0% Flunky Answered % 0 0.0% 0 0.0% 0 0.0% Poor English % 0 0.0% 0 0.0% 0 0.0% 7/11/2007