Mechanical Labor Rate Survey - NATA

1 Mechanical Labor Rate SurveySkills USA 2014 at Camp WithycombeMeet Jim Moore, Third Generation, Baxter Auto PartsJim Moore, NATA Board MemberAUTO OUTLOOK ARTICLES IN THIS ISSUENATA - AUTO OUTLOOK STAFFMay | June | July 2014 NATA StaffNATA s Executive DirectorBarbara Crest SpecialistCathi Webb Office ManagerLaurie Kolar AuthorJohn YoswickContributing PhotographerJulie AlmquistEditorBarbara Crest Graphic DesignerJulie Almquist, editorial news, notices and correspondence to:NATA Administrative Office:7931 NE Halsey St., Suite 212, Portland, OR 97213 Article and Advertisement Deadlines:Jan. 10 for the February NATA Auto OutlookApr. 10 for the May NATA Auto OutlookJuly 10 for the August NATA Auto OutlookOct. 10 for the November NATA Auto OutlookCopyright 2014 Northwest Automotive Trades Association All rights reserved.

2 This material may be reprinted only with the expressed written permission of Office: 7931 NE Halsey St. Suite 212, Portland, OR Fax: OUTLOOK INFORMATIONL etter from the Executive DirectorPerformance Warehouse Trade ShowMechanical Labor Rate Survey 2014 Meet Jim Moore, Third Generation, Baxter Auto PartsAuto Care News for the NorthwestNew NATA Members & Associate Members Skills USA 2014 at Camp Withycombe Vehicle TelematicsPreparing (even years prior!) to Sell Your Business Ross Bradshaw, PresidentPortland Transmission WarehousePortland, Ore. Mary Ann Trout, Vice PresidentHillsboro Auto WreckingHillsboro, Ore. Jim Moore, SecretaryBaxter Auto PartsOregon, Northern California Jake Hammer, TreasurerEverett Street AutoworksPortland, Ore. General Directors: Bob AndersonAJ s Auto RepairSalem, AslaS & S Auto PartsLaPine, Ore.

3 Rick FieldSalem TransmissionSalem, Ore. Jerry GeiszlerJerry s Custom PaintGresham, Ore. Monte ReedBlue Mountain Auto PartsLaGrande, Ore. Ron ReichenPrecision Body & PaintPortland and Bend, Ore. Catherine SkiensRGS Auto and MarineAlbany, Ore. NATA Board Members, 2014back coverThe May 2014 issue of Parts & People (North-west) features two headlines above the fold on their front page: Toyota Embrace of J-2534 Paying Off , then Courts Consider Lawsuits Related to non-OEM Parts and Collision Shop-Insurer Disputes. Northwest Automotive Trades Association finds ourselves in step with these headlines. For instance, In 2011 NATA hosted a Right to Repair technology night for our members. Brian Herron, Drew Technologies, demonstrated the J-2534 scan interface tool, at the heart of an initiative in Massachusetts called Motor Vehicle Owners Right to Repair which was enacted in that state in 2013.

4 Now a Memorandum of Understanding (MOU) for all 50 states, automakers and repair shops have agreed to adopt the Massachusetts law as a national standard. The law requires automakers to make available to repair shops the same vehicle repair information they give to dealers. It allows repair shops to purchase that data with an ordinary computer over a standardized, Internet-based service, and requires automakers to offer a nonproprietary interface for diagnosing problems with vehicles, starting in the 2018 model NATA Board voted unanimously, twice, to support Right to Repair, and worked closely with the national association, AAIA, now the Auto Care Association to bring the initiative efforts to recover some costs for collision repairers in the US, this February 2014, Mississippi attorney John Eaves, Jr.

5 And John Mosley, Director, Mississippi Autobody Association, visited with our members in Oregon about how they could be paid for all performed procedures both past and future based on Oregon s state statuettes. To see a clip of this meeting with the two Johns, go to the NATA website , click on the U-Tube icon in the upper right corner, then open NATA Presents: Collision Repair. If you would like to get involved, contact information will appear at the end of the video. NATA is there to protect our members by keeping in touch with the latest news and activities of the day, the week, and the year!AUTO OUTLOOK n Volume 26 May I June I July 2014 n 2 LETTER FROM THE EXECUTIVE DIRECTORNATA Executive DirectorBarbara CrestDozens of collision shops, vendors and students participated in an open house at Portland Community College s recently-revamped 17,000 square foot collision repair training facility in March.

6 The event helped introduce the program to potential students, and helped bring current students and shops seeking new employees In Step with National Auto News n AUTO OUTLOOK n Volume 26 May I June I July 20143 Performance Warehouse Trade ShowThe annual Performance Warehouse Tradeshow was held on April 26 & 27, 2014. Called Come Catch the Big One, the Hillsboro, Ore. show featured special discounts, vendor booths and displays of the latest in automotive parts and OUTLOOK n Volume 26 May I June I July 2014 n 4In the winter of 2014, the Northwest Automotive Trades Association (NATA) distributed a rate Survey to more than 1,500 shops throughout Oregon, both members and non-members of the association. About 100 shops from around the state responded.

7 The average size of the shop s responded was fairly similar statewide. Most had 7-9 bays, 3-5 technicians and 2-3 people working in the of the findings of this year s Survey included: The general shop Labor rate statewide is about $90, but Portland shops tended to have Labor rates about $10 more per hour than shops outside of the Portland area. The lowest rate around the state was $65-$70. About 1 in 8 of all shops had a Labor rate above $100; all of these were in the Portland area. The most common Labor rate charged in Portland was $95 (charged by more than 11 percent of responding shops). Shops in Portland and the Willamette Valley tend to charge more than there general Labor rate for diagnostic work; elsewhere in the state, shops tend to charge less than their general Labor rate for diagnostic work.

8 There is even more range in diagnostic rates shop to shop, from a low statewide of $35 to a high of $120 per hour. Shops in most markets charge about $8 more per Labor hour for truck or RV work than the shop s general Labor rate. There is significant variance in how much shops mark- up prices on parts. In Portland and the Willamette Valley, shops typically charge a customer about $183 for an aftermarket part that costs the shop $100. But shops in Southern Oregon on average are more than doubling the cost of the part, and shops on the coast and in rural Northeast Oregon are charging less than in other parts of the state. There is less variance market-to-market on OEM parts, but a $100 used part is marked up to an average of $177 in Southern Oregon but only to $134 in Northeast Oregon.

9 Sublet items are marked up somewhat more in Portland and Eugene-Springfield-Albany-Corvallis than they are elsewhere in the state. Of shops charging a flat fee for an oil change, the statewide average was $ ; the average was slightly higher outside of Portland and the Willamette Valley. Labor rates in Portland are up just percent over what a similar Survey found in 2010. Most of that growth occurred prior to 2012. The average Labor rate in Portland was up just 31 cents in 2014 compared to two years earlier, an increase of just one-third of 1 percent. Mechanical Labor Rate Survey 2014 GreaterPortland AreaMid-Valley AreaIncluding Salem,McMinnvilleSouthern OregonMedford, Kalamath Falls, Grants Pass, LakeviewStatewideNATA 2014 Mechanical Labor Rate SurveyEugene Corvallis AreaIncludes Springfield and AlbanyOregon CoastNortheast OregonIncludes PendletonJohn Day Baker CityMechanical Labor Rate Survey : In the winter of 2014, the Northwest Automotive Trades Association (NATA) distributed a rate Survey to more than 1,500 shops throughout Oregon, both members and non-members of the association.

10 Here are the findings on a market area of participating businesses: 64 7 6 7 6 4 96 Average number of bays 8 8 9 9 7 7 8 Average number of technicians 3 3 4 5 5 4 4 Average number of office staff 2 2 3 2 3 2 2 Average number of other staff 1 2 0 2 2 3 1 Shops were asked: If selling a part (or a sublet service) that cost you $100, how much do you charge the customer?Aftermarket Parts $ $ $ $ $ $ $ Parts $ $ $ $ $ $ $ Parts $ $ $ $ $ $ $ Sublet $ $ $ $ $ $ $ on page the BeginningThe history of Baxter Auto Parts goes back to Chehalis, Washington before World War II. At the outbreak of the war Ray Baxter Sr. and his wife Wilma Baxter relocated to Portland to build Liberty Ships.