Coronavirus: The view from the workshop
Outside at A1 Autos
Published: 07 May, 2020
Garages across the UK are having to consider how to approach Covis-19 as the situation unfolds
There’s never been anything quite like it. Even two months ago, the Coronavirus outbreak seemed a distant concern to many people. Now it is changing the social and economic landscape of the country. The impact can be felt everywhere, from 10 Downing Street, all the way to your garage. Businesses everywhere are chipping in with the national effort, and taking stock too.
Last issue we looked at how North Yorkshire’s Pure Car Mechanics had, prior to the Coronavirus lockdown taking place, already instituted measures to support customers who self-isolating or were otherwise affected by the burgeoning crisis.
Co-owner Angel Snowden told us: “Supporting the community is what we are always doing, and other garages should definitely think about promoting these sorts of services if they are able to offer them. We are only doing what other local businesses in other sectors are doing. We are saying ‘yes we are here, and we can help out, if needed’.”
Pure Car Mechanics were quick off the mark in noting the change in circumstances, but they weren’t alone. Businesses across the UK have been looking at their options, and whether staying open to support key workers is the right course, or if closing for a short period might be the way to go.
Busy
Ben Thompson is the owner of A1 Autocentre in Basildon. At the start of the UK partial lockdown at the end of March, MOTs were still running normally, as the deferment option had not yet been made available. As a result it was very busy at A1:
“We are probably one of the biggest MOT garages in the country,” said Ben, “at least down south. We normally do between 40 and 50 MOTs most days. We do pretty much everything. We do servicing, we do mechanical work, tyres, alignment, stuff like that. We have 16 staff . At the moment we have three drivers who are going around picking up cars for people who need MOTs, servicing or anything done repair-wise. Our drivers pick the car up from the customer, bring it to the garage, we do the MOT or service or repair, take the payment over the phone, then we drop it back to them.
“We are still open, and unless the government says otherwise we are going to remain open, and try to keep going. Right now, everyone is parking out the front. We are going out, taking the keys out, putting them in a bag and taking them into the workshop. We are then doing the work, taking the car back out and leaving it at the front. Afterwards we take the payment over the phone.”
Social distancing was definitely underway here?
“Exactly,” said Ben. “We have locked up the office, and no one is allowed in the waiting room. Nobody is allowed in the garage at all. We are allowing people to come in to pay for their MOTs, but that is one person at a time. Paying with the machine is different to dealing with our receptionist. They come in, make the payment, the MOT is already placed in the car with the keys, and they just go in their car.”
We wondered how the staff felt about all of this: “Obviously some of my staff have been a little bit worried and did not want to come in, while others are of the opinion that they would rather be at work than at home. We are giving them the option, so they can either stay away or come in.
“A couple of our guys who are a bit older, we told them to stay off until it is safer. All the others who want to come in and are happy to come in, we can carry on.”
Workshop
layout The geography of the workshop plays its part here: “We have five or six workshop ramps that are quite far apart, so nobody is allowed to go near each other. We also have staggered lunches, staggered smoking breaks. Everyone is working on the basis of keeping apart, and let’s have as little contact as possible.
“At the moment we are staying open, as long as we are allowed to. We will continue to pick up cars as long as people need them picked up, especially people who have kids stuck at home, or older people, and we will continue to do that as long as the government will allow us.”
What about the customers? Was A1 increasing its online promotion to tell what they are doing?
“Yes,” confirmed Ben. “On our Facebook page, there is quite a lot going up at the moment. I have paid for a promoted post on Facebook, and in a very short space of time we already 170 people have like it. It has also had about 40 shares as well. A few people have called, saying ‘I have seen the post, are you still open?’ We are obviously saying yes. We are getting calls from customers. We will put more on. We are saying if there is any threat of illness please let us know, otherwise come in yourselves.
“We are seeing loads of new customers. We have got pretty much record numbers every day. Someone rang the other day and said ‘oh please say you are open! I’ve called five or six garages and they are all closed’. We are definitely receiving a lot more people as a result of the situation. On average now we are doing 55 MOTs every day, which is more than usual! It is not getting quieter – it is getting busier!”
That is the situation in Essex. Let’s look elsewhere to see how the situation is affecting things.
Essential
Hayley Pells is famously owner of Avia Autos in Bridgend in South Wales. The business normally covers a range of services, from conventional servicing and repairs, all the way through to maintaining racing cars, and even producing car bodies for inter-war vintage vehicles. With the imposition of the Coronavirus measures, a rethink and refocus was required.
“Following the Prime Minister’s speech on 23 March, “ said Hayley, “ we have been opening under restricted hours, offering MOTs and essential repair only. Following the initial DVSA guidance that all motorists undertaking essential travel did have to have a valid MOT certificate, we felt it was important.”
Subsequently, MOTs were deferred for six months from 30 March, but could still be performed if possible and the driver required.
Even with this in place, MOTs will still be required, and essential workers will need to be kept on the road. Hayley found it was taking time for the customers to get the idea of essential repairs: “I have been quite surprised, in that I have had to turn away what could be regarded as more frivolous services that we do offer, that we are specialists in, particularly with racing cars, track cars, that kind of thing.
“We are not undertaking any of that work at this time, so we can focus on the needs of essential travel. I’d like to focus on the use of the word ‘essential’. We are not opening for key workers only. We are opening for essential travel. That does include a key worker going to their place of work. It also include the person in self-isolation who is perhaps pregnant or perhaps undertaking dialysis or chemotherapy, and they have an essential need to leave their homes regularly. So, essential travel is something that we really need to examine, and use responsibly. It’s not just a key worker thing.”
We wondered if it was just regulars who were using the service, or if other garages – and franchised dealers – closing had led new customers to make their way to Avia Autos. “We are mostly seeing our regular customers,” she replied.
Demographics
With the risk from Covid-19 rising as a person ages, Hayley was also conscious of an organisational shortcoming our sector might have in this situation as a result for the need for social distancing, and in some cases full isolation: “I am not sure of the specific stat, but anecdotally I believe that a third of those working in our sector are over the age of 50. Essentially we have what would regarded as an older workforce. Because of the ages of those involved, a high number of people who are in our sector may be unable to offer the service they normally do, because of the risk to their demographic.”
This is an issue across the board: “We are seeing garages closing for variety of reasons. We have had referrals from other independent businesses in order to help support their clients for essential MOT and repair.
[sh] Finances With traffic levels around 80% down according to some estimates as a result of Britain’s partial lockdown, is doing the public-spirited thing and staying open actually going to be cost-effective over the coming weeks and months?
“I have no idea if it is going to keep the lights on if I am honest,” observed Hayley, but that is something where I am going to rely heavily on the advice and support from our government to address. I run a transparent business. If I need to access support, I hope that will be there for me. I feel it is a little bit pointless trying to access that support right now, because I don’t need it right now. Right now, my skills are needed to keep cars on the road.”
Marketing
We asked how customers are finding out Avia Autos is still open? Was Hayley actively marketing the fact that the business is open? Have she changed thee marketing message?
“We have changed our marketing strategy,” she confirmed. “We are not encouraging travel to our workshop though. We are placing notices of our opening hours and the services that we offer on our social media platforms. We have also updated our Google Business listing. We are not doing any special marketing to encourage footfall. I don’t think that is a model that would work for us. I also don’t think it would help the current situation.”
That seems like a difficult balance to strike: “We are not actively discouraging people. We are trying to be transparent around what the law is, and what people require. Some things are very easy. You need your brakes done? We will fix your brakes. That is a really nice and simple one.”
Essential
Does it get complicated then? “It is more difficult to make that call when someone says they have a need for something, such as ‘I need air conditioning’. Maybe they do, and maybe they don’t. It is not up to me to determine somebody’s medical need as to whether they have a requirement for air conditioning or not. However, I have chosen as a business not to support that as a service.”
What about work that could be seen as extraneous, but actually has a safety impact: “We are alignment specialists. We also do a lot of corner weighting, and alignment for specialist track cars. I found this one a lot more difficult to analyse. On balance, we have opted to drop corner weighting as a service.
“However, with alignment I think this is still an essential service to keep people safe on the road. As a result, we are providing alignment services for normal cars, especially if they are in for MOT or essential repair anyway. It is not something we will do unless the customer says ‘I have just hit a whopping great pot-hole, and every time I try to drive my car is veering off to the left’. At that point it is out of alignment territory and into the realm of repair if I am honest.
We wondered what Hayley would do if it veered into ADAS territory: “I don’t know and thankfully I don’t have provision for ADAS yet. I don’t have to answer that question, and at the moment I am quite pleased about that.”
Practical
It continues to be a highly fluid situation for businesses. Garages have to assess where it is practical to stay open, and where they will need to consider closing. In a classic example of this, after we spoke to Hayley, she took the decision to close the doors at Avia Autos for the duration. Many of Aftermarket’s readers will be looking at their options, and having to make similar choices. Whether you stay open or shut up shop has to be the right decision for your customers, your staff and for you.
Avia Autos’ customer Mr Doyle, waiting at a safe distance for his Mazda
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- Head for the Brexit
We've been talking about Brexit for a while now. At least once in every issue there will be a story about the process of leaving the European Union, and the potential impact on the automotive sector.
While progress is hard to gauge, with every issue there is some new angle. It's difficult to keep up, so that handy phrase "as we went to press" gets used a lot. Using it yet again, as we went to press for the October issue, a deal with the EU seemed more likely. Reports were surfacing of Germany and the UK dropping certain demands that would enable an agreement. A positive development then.
Have we been giving a balanced view through the process though, and are we asking the right people what they think? Maybe, and maybe not.
Positive aspects
David Dawson, co-owner at Preston's Car Doctor contacted Aftermarket to express frustration regarding the coverage of Brexit in the magazine. He had this to say:
"You’re becoming as biased as the BBC. this is Project Fear all over again. Try balancing your reporting with some positive aspects and opportunities that Brexit may provide us with. BAE Systems has won a £20bn contract to build frigates that will form the backbone of the Australian navy, beating off rival proposals from Italian and Spanish groups for the biggest naval defense deal of the past decade.
"I know it’s not automotive news but there will be many opportunities like this for the automotive industry outside of the EU post Brexit. The Germans French and Italians will still want to sell cars to the UK. It just annoys me that the media constantly go on about how bad it will be when we leave the single market. There will be many opportunities and upsides out of the EU even on WTO tariffs."
David added: "I read Aftermarket magazine, both online and the printed version and have done for many years. However in recent times many of your articles paint a dim picture for the industry outside the EU would be nice to read something positive for
a change."
Now, as a publication we stand by our reporting, and will cover positive and negative views on key issues as they arise. We do listen to our readers though, and David's argument did make us think. It also raised another issue – one of representation.
Having heard from David in the north of England, we thought we might take views from other businesses around the UK, to see what they think the impact of Brexit will be on their business.
Access
Turning our attentions south, we asked Kevin Pearce from 2018 Top Garage winners Cedar Garage in Worthing his views on whether Brexit will have a positive or negative impact on the aftermarket. "I think it could go either way," mused Kevin. "I don't see any positives it can necessarily bring. On the negative side, I think we could struggle to get hold of technical data and manufacturer-specific information." According to Kevin, UK consumer buying choices have built up a car parc that could swing things 'our' way: "Considering the number of vehicles we actually import, especially the German stuff, we should actually be in a very strong position to dictate terms. If they want to continue to sell cars to us, whoever is negotiating for the UK should be able to dictate terms on that. Going forward, in terms of telematics we need to make sure the aftermarket stays on the right side of the manufacturers to make sure we continue to get access."
Cedar Garage recently opened a German marques-only outlet, so we wondered if he thought Brexit might have a specific impact on the business's ongoing endeavours: "If it does, not for a long time," replied Kevin. "I think generally it will all come down to how well the negotiations go. We have good access to all the data we need for the German brands. So long as Brexit does not get in the way of that, I can't see how it could cause a problem.
"Obviously a lot of the parts that we buy come from Europe. Hopefully the prices won't increase too much. At the end of the day, we import so much, that if these people then do not want to sell to us, they are surely going to be the ones that lose out."
We went onto ask if Cedar Garage's customers had displayed any noticeable Brexit jitters: "So far it does not look like that at all. We have not seen anything like that. All of our customers are carrying on as normal. If any of them say, ‘I can't afford this or that’ I don't think it affects our trade that much. Maybe if it was car sales, but definitely not in terms of the repair market."
While garages on the south coast might be closer to the continent than most of the other businesses in the market, it's not like Cedar Garage customers are likely to head over the channel to France for their car servicing is it? Shaking his head, Kevin replied: "Of course not." As far as Kevin was concerned, the market is changing and this should mean the supposed consumer confidence hit that might result from Brexit could be over-stated: "What we are finding is that people are looking more and more for a professional service, and are prepared to pay for that. People are becoming more conscious of what goes into a car and are prepared to pay. They would rather pay a professional to pay to repair their car, rather than someone they met down the pub who does it in the car park."
Uncertainty
How you feel about the relative opportunities and threats of Brexit can largely depend on where you are sitting. For businesses in Northern Ireland however, Brexit has its own special issues. Starting with the more general concerns, Colm Higgins from CH Autoservices in Magherafelt, Northern Ireland said: "I think the biggest issue for most garages, with the position we are in, particularly the go-ahead guys who are into diagnostics, is access to data. This is the issue we would want to address first and foremost. We rely on the access to manufacturer data that is assured through European regulations like Euro 5, so obviously we are concerned. With Brexit nobody really knows what is going to happen.
"Some of the manufacturers, like Mercedes-Benz, had a very good scheme where you could lease a diagnostic tool, but they removed that recently, and I think it is tied to Brexit.
"Obviously the price of parts and access to parts, is something to be concerned about as well. MOTs too, as well as emissions. Are we going to establish our own standards? Are we going to be governed by European rules? Or are they going to be similar to the European rules? Is it a chance for the UK to make its own emissions standards. If so will they be similar, or less?
Colm continued: "Also, what affect will it have on the car parc? What cars will we be working on? Are we going to see a change in consumer activity as well? What the good guys seem to do is look at what people are buying and how the market is going and see the trends. Obviously electric vehicles is something we have invested in here. Is that going to be impacted by that? Is it going to be more or less. It is important to get an idea of where things are going to go. The biggest problem is that nobody knows.
"Almost everybody has a German or French car in the UK, or at least a European car. What is going to happen? Are they going to be taxed more? In the second hand car market we are still seeing the effects of years of uncertainty over diesel."
"The key thing for any business is to be ahead of the curve or at least be aware of where it is going before it gets there. For any business you would be absolutely crazy to bury your head in the sand. It gives you a very good reason to read the latest industry news so you know what is going on."
One problem that most businesses in the UK don't have to worry about is a land border with the EU. For businesses in Northern Ireland that is a real concern. Will Northern Ireland motorists head for the Republic for servicing and repairs if prices rise as a result of Brexit?
"There is already a lot of that happening in Northern Ireland" said Colm. "We are about an hour's drive from the border. Some of my customers in trade sales, they sell a lot of cars to the south because the Pound is weak. We can make the most of that depending on the situation, as we can buy stuff from down there and sell it up here, or vice versa. I am optimistic, and we can make the most of that kind of situation. Because we are so close to the border,
we can be flexible. Northern Ireland is unique that way, and more flexible if we have to adapt. If Brexit becomes
a complete nightmare there are options in terms of suppliers."
Then there's the threat of a hard border: "That's a big issue," opined Colm, "and a complete minefield. We have enjoyed this border-free situation for a long time now, and no one wants to go back to having a hard border. The flexibility would be gone. No one wants to go back to the old days here."
Despite these concerns, Colm remained confident: "Anyone who is in the higher end of this business is ready to adapt to change. In the next few years you won't see an engine or a piston as it is all going to electric motors. It is change or get out really. Brexit is another factor in the motor trade, albeit one that is going to affect your life in a big way."
Double meaning
Next, we looked to Scotland, where the issue of exiting a bloc has a double meaning. Pier Garage is based in Ardrishaig, Mid Argyll. Owner Kris Gordon's first concern, like his counterparts in other parts of the UK, is access to data: "My biggest concern is definitely access to information. You can't get all the information from all car manufacturers. Even with the situation we have at the moment, we still struggle. With someone like Ford, they make it quite difficult to get it, and they do charge you for everything, so whether it works worse or better is my
main concern.
"I voted to leave at the time, for other reasons. There was so much stuff being put out there that you didn't know who to believe. You just had to pick a side and go with it I think. Nobody knew what chaos would happen as a result of it all. I suppose if you had thought about it, it was obvious what was going to happen. Now we are in a situation where nothing has been answered. It is worrying, because it has been a hard enough few years since the banking crisis in 2008, and now it looks like it is all going to get worse. We will have to ride it out and see what happens."
Kris believes Brexit could be leading Scotland into a period of greater uncertainty than the rest of the UK: "I think it will cause a lot of distraction rather than getting people focused on getting the economy in a better place. Political parties will be thinking 'do we have to have another independence referendum and then rejoin the EU?' Again, I voted for an independent Scotland, but now it has been decided, everyone has made their choice and is getting on with it. Despite this, the SNP is still focused on a second referendum, rather than just accepting the result and getting on with things. If we have another referendum and it goes the other way, where will it end? It could go back and forth, and the same with Brexit, there is always going to be someone who is unhappy. I think they need to accept it and do the best they can."
Your views
We found a mixture of views from business owners on both sides of the argument. Do these views on Brexit chime with your own? Or do you have an opinion not expressed here? We would love to hear from you. Get in touch with us via alex@aftermarket.co.uk to tell us what you think.
