CIAS 2002 News: Technicians Should be Making $75,000, says Speaker

A competent technician should be making $75,000 a year, says industry trainer and consultant Bob Greenwood.
But, he adds, "We can’t afford to pay them that, because we as an industry are not there yet."
Greenwood, whose presentation on Shop Profitability is repeated Sunday at the Canadian International Automotive Show in Toronto, provides a full rundown of industry benchmark averages, including profitability, dollars per bay, and overall profitability.
Today’s technicians are required to have a broad understanding of electronic, hydraulic and mechanical systems, says Greenwood, which is why he believes technicians are worth that kind of a salary.
"These guys are whizzes, but we aren’t there yet to be able to pay them that, and we have to get there."
Greenwood’s research has shown that the average repair garage in Ontario produces about $75,000 in profit after all expenses, but before management wages.
"This is not enough! The average shop owner has bought himself a job. You’ve got to think gross profit. You’ve got to think net profit."
Greenwood says that the lack of profitability is having an adverse effect not only on the wealth of the owner, but on his ability to retain employees. "Within three years, you are going to need to offer a proper registered retirement pension plan. How are we going to create longevity with our staff if we are not able to provide long-term security for the people we want to have a long-term relationship with?"