In his last column, Neil Pattemore discussed how the ‘in/out’ referendum may impact your workshop business. This time, he provides a snap-shot of some of the challenges that independent workshops will face over the next 12 months, and beyond.
The automotive aftermarket is probably changing faster and faces bigger challenges than at any time before. I’m therefore honoured to be a new contributor to PMM and will be aiming to help readers in their quest to be more productive, competitive and aware of what is ‘coming over the hill’, so helping in the operation and development of their businesses.
I thought a good starting point this month would be to introduce myself and let you know a little bit more about what is planned in future articles.
I’m a specialist aftermarket consultant and have been privileged to work in a variety of roles across the sector for over 40 years. For the last five years I’ve represented the rights and interests of the European Aftermarket in Brussels and am confident that my experience will provide me with sufficient knowledge to help PMM’s readers in a variety of technical, business and legislative issues.
In future issues I will cover a range of subjects, some of which will be technically orientated, such as changes to in-vehicle architectural design, access to repair and maintenance information or security related information. Other articles will be more focused on the information that will help in developing a better business, whilst others will cover what legislation is being discussed and how this will impact the UK IAM. I hope that my writing style will be easy to understand, a little punchy, often thought provoking and occasionally controversial, but always worth reading.
The future?
We’re at a critical point in the automotive aftermarket where independent operators are under increasing pressure to handle ever more sophisticated vehicles, meet elevated (sometimes unrealistic) customer expectations, implement new on-line booking and feedback sites, as well as complying with increasingly stringent business regulations.
OUR NEW KID IN TOWN. Neil Pattemore has worked for over 40 years in the automotive aftermarket, with a CV that includes job roles for parts distributors and manufacturers as well as vehicle test equipment manufacturers at a senior level, both in the UK and internationally. Neil now works mainly in Brussels with the European institutions to defend the rights of independent repairers throughout Europe to access vehicle repair and maintenance information.
To add to this burden, there is now an even more threatening spectre looming – the ability of the vehicle manufacturers to use their new in-vehicle system designs to control all access to in-vehicle data; if you think the standardised 16 pin OBD connector is going to continue to work as it does today, think again!
The workshops of tomorrow will need to raise their game to remain profitable and compete with not just the main dealers, but now the VMs themselves as telematics become truly commonplace with the imminent introduction of eCall systems. In the past, the relationship between a VM and the vehicle owner was through the main dealer, but this is changing to become direct, by-passing both the main dealer and the independent workshop at the same time.
Well trained technicians
The key challenges for independent workshops will be how to run more efficient businesses, based on industry standard management techniques, with well trained and equipped workshop technicians, carefully chosen parts and equipment supplier relationships, technical support back-up and a good understanding of their legislative rights for access to the technical, repair and maintenance information needed to be able to efficiently service and repair a limited range of vehicles.
The days of being able to work on ‘anything that comes through the door’ will become ever more limited – the cost of trying to be trained and equipped for every make and model, or the risk of either taking too long, or making a mistake in repairing an unfamiliar vehicle, means that it will be increasingly difficult to make a profit.
Independent workshops will slowly but surely start to look and act like small main dealers, with similar cost bases, so will equally need to compete at a similar level in the eyes of the customer in being professionally managed and run, with trained and competent workshop technicians. When the Block Exemption legislation ends in just over seven years’ time, the main dealers will have to become more competitive, so it is never too early to start ‘upping your game’ to compete before that time comes.
