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Wake County Story



The Recession-Resistant Job?

Credit: AP Online

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DURHAM, N.C. -

Nathan Smith knew he wanted to work on cars when he was 15 years old and his family's Volkswagen broke down on the side of Hwy. 15 near Stem.

"My dad could fix anything, but he couldn't fix that car," Smith said. "Two gentlemen pulled up behind the car and a guy leaned in and he made the old Volkswagen run in about ten seconds. I never forgot that."

Now Smith is the Program Director for the Automotive Program at Durham Technical Community College and is in, what some call, one of the recession-resistant careers in this economy.

"The electronics alone are mind-boggling," Smith said. "Only those with training and experience are actually getting jobs."

Durham Tech saw an increased enrollment in tech jobs this semester. Automotive Systems Technology enrollment is up 17 percent. Electronics Engineering Technology enrollment is up 19 percent. Electrical/Electronics Technology enrollment is up 22 percent.

"Enrollment in those programs - probably for the last ten years - has been sort of flat so it's nice to see an uptick in our enrollment," said Pam Senegal, Dean of Technical Programs. "It's due in large part, I believe, to folks who have been laid off and they've always wanted to do something with their hands."

"The reality is we all drive cars and our cars have to work. Those are the kinds of skills that aren't going out of style."

Adam Flowers is 27 and has one more semester left before he finishes the auto program.

"You wouldn't want a doctor operating on you without any training - just learning on the job. It's the same way with a car," Flowers said. "There are shortages of technicians in the field today. That's one of the reasons it's a good idea to get into it. It's pretty much recession-proof."

Smith said internships at the school show there's promise in the career.

"In the last several years - 100 percent of our students are employed at the end of their second co-op," he said.

Senegal said the nature of the Triangle economy is helping in both the automotive and electrical fields.

"Most of the businesses in this area are smaller businesses. They are shops that employ ten or fewer people," she said. "Some of the bigger shops have had some shedding of employees but skilled trades people are still in demand."

"There is still construction happening - not only industrial but residential." 


Learn more in question and answer session with Tony Molla, Vice President of Communications for the National Institute for Automotive Service Excellence (ASE). ASE is the recognized national industry standard for technician certification.


Is the auto-tech industry really "recession-proof?"
It's probably more accurate to say it's recession-resistant. However, most of our independent repair shops are reporting increased sales as more consumers choose to maintain their older (and often paid-for) vehicle, rather than commit to five or six-years worth of car payments for something new. Maintaining a good used vehicle is usually a very cost-effective option, with even comprehensive repair bills only representing one or two car payments. Add to this the fact that, for most Americans, our personal vehicles are our mass-transit system, which millions of us rely on to get to work, school, the grocery store, etc.

Why are you seeing an uptick in the auto technology realm?
I think there are several reasons. As a society we are coming to realize the value of having technical skills when it comes to making career choices. In fact, individuals with a two-year technical degree actually have a greater earning potential over the life of their career than someone with a non-technical four-year college degree. It really is true that college isn't for everyone, and there are viable alternatives to be found in Career and Technical Education (CTE). If there is such a thing as job security these days, it's found in having an adaptable skill set to allow an individual to react to a changing job market. It's also true that, when it comes to automotive service and repair, you can't off-shore an oil change. Another significant reason for the uptick in automotive technology programs are Bureau of Labor statistics that show a growing job market as large numbers of today's working technicians reach retirement age. For the most part, these are baby boomers and about half of the technicians servicing our vehicles today are going to be eligible for retirement in the next 7 to 12 years. We're just not turning out enough qualified, entry-level technicians to meet this growing demand. So the job prospects are very good for those with the right qualifications and skills. Today's vehicles are very different than those of even ten years ago, and tomorrow's technicians will need skills that prepare them to cope with increasingly sophisticated comuter-controlled engine and vehicle control systems. These are the kinds of in-demand skills that represent the future of our industry.

Are there areas of the country seeing an impact of the recession worse than others?
As you'd expect, there are pockets centered around things like closed businesses and manufacturing facilities where the jobless rate is higher than the average. In addition, many are seeing their wages and benefits shrink as companies try to cope with the decline in revenues and ride out the recession. As far as automotive service goes, there seems to be some weakness in an otherwise robust market in South Florida, where there are a larger number of retirees on fixed incomes, areas like Detroit and Southern California. But it's really all over the country and very regional, with areas doing fine very close to areas where the recession has really taken its toll.

What is the average age of auto techs? Are retirements going to impact this field?
Right now, the average age of our ASE-certified automotive technicians in the U.S. is about 42-46, but some segments are older, like those servicing heavy trucks. As I stated above, about half will be eligible for retirement in the next 7-12 years.

Has Cash for Clunkers changed the scheme of things?
Cash for Clunkers took about 700,000 vehicles off the road, if you assume a one-for-one exchange based on reported new car sales. However, as large as that number sounds, it represents a very small fraction of our total vehicle population. While it has taken some of the vehicles in our prime market for repair and maintenance out of the picture, it really doesn't seem to have affected the aftermarket service industry much at all in the big picture. It would have been nice to have seen a repair option as part of that stimulus package to help the folks who have to maintain their older vehicle because they couldn't qualify for a car loan under the Clunker program. I think it would have helped a lot more people who could use the assist right now. 

Are luxury auto technicians seeing an impact?
Many consumers in the luxury car segment lease rather than buy to own their vehicles. Due to the tight credit market, we're seeing a decline in leasing, so it stands to reason that this segment would see some drop off in service work. Add to that the fact that many luxury car owners are more likely to go back to the dealer for service and may be delaying some maintenance and repair work due to the economy, and you begin to understand why that segment might be soft. It's also true that most luxury vehicle owners tend to have newer models that need less repair. However, these are also the households that are more likely to have the disposable income to keep their vehicles serviced and maintained properly, so any downturn is likely to be short-lived.

How many technicians are here in the U.S.? How have dealership closures impacted them? Are independent shops reaping the benefits?
Depending on how you define "technician" there are somewhere between about 850,000 to just shy of one million in the United States. The actual number of displaced technicians from closing dealerships is actually a small part of this total, and many are finding new opportunities in the independent aftermarket, or taking different career paths altogether. Here again, the value of having a technical background can't be minimized. It can give an individual options when times get tough. 

What other jobs are out there for auto techs?
Having technical skills can open up quite a few possibilities for those in the automotive industry, but even other industries, like Aerospace, recognize the value of an applicant with a technical background. So those automotive service skills can often help transition an individual into a totally new career path. Many parts manufacturers, for example, love to have regional sales representatives with technical backgrounds, since such an individual would not only understand the products and how they are used, they also understand the customer very well. Having a good mastery of electronics, knowing how to use sophisticated test equipment and being proficient with the use of tools can qualify an individual for a great many things, from shop management to customer service positions. The most obvious opportunities for technicians right now are in the heavy-duty segment and most of these companies will provide the ongoing training a technician needs to keep their skills sharp and cope with advancing automotive technology.

Why are technical skills, in general, important when you consider what companies are outsourcing now?
As I said above, you can't outsource an oil change, or a water pump, or a dead battery replacement. Automotive service and repair is a local exercise. However, it's also a very personal business, so going beyond the technical skill set to develop good customer service and communications skills is also critical for those wishing to move beyond the service bay. But remember that at the core of it all are those technical skills that will not only help an individual take advantage of an employment opportunity, but will also provide many other doors to walk through as time goes on.

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