The Newest Generation of Mechanics
As Gen Z becomes the new majority of the workforce, the emergence of a new generation of mechanics and dealers is upon us.
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ON THE COVER As Gen-Z becomes the new majority of the workforce, the emergence of a new generation of mechanics and dealers is upon us. To learn more about how the automotive industry continues to evolve, as well as the newest set of workers that will support it for years to come, turn to page 16.
MDA BOARD OF DIRECTORS:
Janet Cummings
President
Dave Repass
Vice President
Marc Arnold
Treasurer
Joe LaManna
Secretary
Joe LaManna
Region 1 Chairman
Marc Arnold
Region 2 Chairman
Dave Repass
Region 3 Chairman
Pete Robinson
Region 4 Chairman
John Coffield
Region 5 Chairman
Chris Johnson
Region 6 Chairman
Janet Cummings
Region 7 Chairman
Chris Dalen
Region 8 Chairman
Greg Fry Executive Director
MDA EDITORIAL BOARD:
Rachel Jackson
Editor-in-Chief
rachelj@elevanta.com
Jared Johnsen
Communications Specialist jaredj@elevanta.com
Tyler Ryan
Communications Editor tylerr@elevanta.com
ADVERTISING SALES
Brad Seton
Sales & Development
brads@elevanta.com
678-540-6211
FEATURES
3 MDA Committee Reports contributed by the Operations and Fleet Committees
13 UpSwell | Preferred Partner Meineke Corp. + MDA contributed by UpSwell
14 MDA’s 2024 Vendor Appreciation Event: Success and Thrills
16 The Newest Generation of Mechanics by Tyler Ryan, MDA communications editor
18 Employers Need To Review Workplace Rules and Policies Following Recent NLRB Decisions by Matthew Guerrero, Laner Muchin
20 Avoiding the Gutter: How Not To Embarrass Your Customers by Danny Snow, Snow & Associates Inc.
22 Thoughts on Excellence: Five Sustained Focused Efforts by Dan Coughlin, The Coughlin Co.
24 The Process Pressure Points Are Personal by David Allen, Getting Things Done
26 Understanding the 2024 Beneficial Ownership Reporting Requirements: What U.S. Businesses Need To Know contributed by Mize CPAs
COLUMNS
2 President’s Column by Janet Cummings, MDA president
Meineke Dealers Association publishes Dealers’ Digest. Any reproduction, in whole or in part, of the contents of this publication is prohibited without prior written consent of Meineke Dealers Association. All Rights Reserved. In keeping with our commitment to the environment, this publication is printed on certified, environmentally friendly recycled paper using eco-friendly inks.
FROM THE PRESIDENT
By the time you receive this publication, Meineke Dealers Association (MDA) and Meineke Corp. will have finished another round of regional meetings. These are our spring regionals, and it was certainly a challenge to schedule the meetings around the Advance British Isles Cruise that so many of you took. Yet, we had a good turnout, so we appreciate all the dealers who took time out of their busy lives to join us for two eventful days of meetings. I believe the time that we use to convene as dealers and talk about best practices is invaluable. Add to that the information we get from corporate on the second day of the meetings, and it is always worth the time and effort to attend. There are not many franchisors who hold these kinds of regional meetings with their franchisees, so I hope you will continue to attend.
One of the takeaways from the MDA meeting was a presentation about Form Piper, a new financing platform that is being rolled out. There are dealers who are beta testing now, but we are very excited about what we believe will revolutionize how we do financing. Ask Ben Ramsay; he has seen incredible results from the program. There are more details to come soon about a program that is a benefit to MDA members.
Something we talked about at the Region 7 MDA Meeting was hiring and training employees. Of all the challenges we face as dealers, I think most of us would agree that staffing is our number one issue. Meineke Corp. has an account with ZipRecruiter and will place ads for you, but many of us have not had much luck there. A new vendor that some dealers are using is Workstream. While similar to ZipRecruiter, Workstream makes the appointments for you. The feedback we’re getting is that the applicants actually show up with Workstream. They are a sponsor of MDA, and you can find their contact information on our website.
At the Region 7 Meeting, many in attendance pointed out that young people are not opting to learn how to work on cars and that is something concerning for the future of our business. As we look at employees who may soon age out, we question whether there will be enough replacements. For too many years, our young people have been told that everyone must go to college. So, an entire generation has enormous student loan debt and very few career options. It is possible that perception might be changing as people like Mike Rowe of “Dirty Jobs” fame are creating arenas of training in “the trades.”
That means that we may have to grow our own. We may have to take a lube tech and work to turn him or her into a C Tech or, maybe, a B Tech. As we heard at presentations from corporate, that takes care of most of our needs. We don’t need a master tech
all day every day, but we certainly need people who do brake jobs and A/C work all day every day. Unfortunately, the job of turning a minimally-skilled lube tech into a technician who can be trusted with more complicated work is not easy. Do you incentivize the more skilled techs to train these techs? Do you spend the money on training?
JANET CUMMINGS
Because of questions like these, Meineke Corp. has partnered with vendors like Garage Gurus and Carquest Technical Institute to try to give us options. While Garage Gurus is fantastic because it is hand-on, it is also somewhat pricey. Also, there is time spentaway from your center while the tech is learning. These are challenges that we are having to navigate while we prepare for a future with fewer and fewer skilled technicians to choose from.
Of course, that future very likely will include EVs that we need to learn how to service. We may be able to invest in the equipment, but we still need to invest in training for the technicians – including B Techs, as well as master technicians. None of them know how to service EVs yet.
While the task may seem daunting, this is a chain that moved from just installing “discount” mufflers to complete car care. We do have support from Meineke Corp. as well as vendors that MDA is bringing to the table. If you have been around as long as I have, you’ll realize that we just have to adapt and adjust in order to keep and maintain a good strong staff. If that means using companies like Workstream or ZipRecruiter, at least we have those resources available to us. If that means turning a lube tech into, hopefully, a B Tech, we do have options on how to make that happen. And, of course, Mike Baden is the pioneer in EV training, and we can all thank him for showing us how to do that when we are ready.
All in all, the one thing none of us should do is just sit and wait for our skilled staff to age out before we have a plan to replace them. The future is already here.
Sincerely,
Janet Cummings
MDA COMMITTEE REPORTS
MARCH TECHNOLOGY COMMITTEE REPORT
Attendance: Rob Fillman, Jeremy McGowen, Amol Kansagra, Lubbi Ernjakovic, Kevin Leger, John Price, Paul Hammond, Mike Baden and Greg Masewic.
Items discussed:
• Marchex is developing a Spotlight AI tool for call scoring that looks like it will be a huge improvement in comparison to what has existed in the past. More to come.
• The Repairify/Astech Pilot program
• Pilot program has been suspended, as Repairify has concluded they are in a better position if they embed their technology with existing Autel equipment. More to come as we discuss testing that new technology when ready.
• Refocusing on smoother rollouts was discussed, as we have taken stock of the Drive Tool rebuild. All agreed to work on better communication and collaboration going forward.
• Tekmeteric Updates:
• Tek reports that adding multiple Techs and Service Writers to RO’s should be ready for rollout in Q2.
• They are preparing a tire module, which they are currently planning to be a $39/month add-on.
• Warranty identification and tracking is on track for Q2.
• Enhanced, selectable required fields are also supposed to be available sometime in Q2.
• Shop Genie scheduling is testing well, and contract negotiations are happening with Meineke Corp. We are working on tightening up some matching data with Tekmetric to prevent duplicating customers if identifying data isn’t a perfect match.
To review past reports, please visit www.meinekedealers.com.
Meineke No. 2830 in Mesa, Arizona, Hosts Mayor and Councilwoman for Informational Community Gathering
Mesa, Arizona, Mayor John Giles and Councilwoman Julie
Spilsbury gathered with community members and constituents at Meineke Car Care Center No. 2830 to discuss the current state and future of the city. The event, called “Java with Giles,” is organized through the Mesa Chamber of Commerce, which stands as a network of businesses in Mesa looking to expand their reach and unlock new levels of success. Members of the Mesa Chamber of Commerce have the opportunity to host the Java with Giles event at their local businesses, at which community members can meet Giles, hear his plans for the city for the remainder of his term and enjoy coffee and other refreshments.
“It’s an opportunity for people to speak with the mayor
personally, so it’s really a big deal,” said LaVon Jackson Maccanico, owner of Meineke shops No. 2829 and No. 2830, as she described the benefits of the event for both the community at large and for her location. “We’ve gained a couple of new repeat customers. People are able to find our business easier and say, ‘Oh, so this is where the local Meineke is!’”
Her son, Mike Jackson (affectionately known at their shop as Meineke Mike), presented Mayor Giles with a homemade key to the city, fashioned to also look like a wrench as a tribute to the Meineke location. The key was made by the location’s Master Mechanic, Jimmy.
Meineke Dealer Invited To Local News Station To
Discuss the Brand’s Partnership With United Food Bank
I
n May, Meineke dealer LaVon Jackson Maccanico was featured in a TV segment on the Phoenix, Arizona-based local news and lifestyle show, Arizona Midday. Maccanico, who owns Meineke Car Centers No. 2829 and No. 2830, has been an automotive services executive for several years and was invited to share her excitement about Meineke’s sponsorship of the United Food Bank, through which Meineke Car Care Centers across Arizona lend their support to the Summer of a Million Meals campaign. The campaign aims to combat hunger and provide resources to Arizona children and families in need. For every $1 donated, United Food Bank can help provide five meals to Arizonans.
Additionally, Maccanico shared tips for the community
regarding how they can keep their vehicles in the best shape throughout the summer. She suggested that community members ensure their air conditioning and engines are working correctly, check for weather-related changes in tire pressure and consider getting an oil change.
“For every full-price oil change that we conduct, we will be donating an extra $2 to United Food Bank, which will feed lots of families this summer,” Maccanico said about how visitors to Meineke locations can support the Summer of a Million Meals campaign and have their vehicles serviced in preparation for the warmer weather.
Attendees of the Java with Giles event at Meineke Car Care Center No. 2830, with owner LaVon Jackson Maccanico and her son, Mike, at the center.
Mike Jackson (a.k.a. “Meineke Mike”) presented a homemade gold wrench/key to the city to Mayor John Giles.
Meineke Dealer Recognized by the African American Chamber of Commerce
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n November of 2023, The Greater Cincinnati and Northern Kentucky African American Chamber of Commerce (AACC) inducted Meineke dealer Cedric C. Newberry into its Black Business Hall of Fame. The AACC, which is a non-profit organization dedicated to igniting opportunities and fostering growth within the African American business community, held a Masquerade Gala on Nov. 17, during which the organization presented its prestigious 2023 Black Business Hall of Fame induction ceremony. Cedric Newberry, CEO of CC Newberry Automotive Corp. dba Meineke Car Care Center with two locations in Cincinnati, Ohio, was one of the awardees inducted into the Black Business Hall of Fame and publicly recognized during the gala.
Newberry was a senior research biologist in St. Louis, Missouri, before becoming an entrepreneur. While he was investigating the possibility of becoming a Meineke franchisee, Newberry originally planned to stay in St. Louis but eventually relocated to Cincinnati. “There were three Meineke locations in Cincinnati at the time,”
Newberry said about the move, “so I thought there was an opportunity for growth there.” Both Newberry and his wife had relatives who were also living in the city, contributing to their decision to pursue ownership of Meineke shops there.
Newberry has operated his first location, shop No. 325, in the Cincinnati neighborhood of Roselawn since 1983. His second location, shop No. 791, has been located in the neighborhood of Forest Park since 1988.
Cedric C. Newberry, owner and general manager of Meineke Car Care Centers No. 325 and No. 791.
In addition to operating his Meineke locations, Newberry has served on the board of directors of the Greater Cincinnati and Northern Kentucky AACC for four years. As a board member and an inductee of their Black Business Hall of Fame, Newberry continues to work with the organization to serve his local community.
The award Newberry received as an inductee of the African American Chamber of Commerce’s Black Business Hall of Fame.
BEHIND THE
History Industry
History Behind the Industry is a spotlight of events and/or figures that have shaped or significantly impacted the current state of the automotive industry, and how Meineke dealers can utilize such information for the betterment of their businesses.
HENRY FORD, IN THE NEW YORK TIMES –JANUARY 11, 1914:
“Within a year, I hope, we shall begin the manufacture of an electric automobile. I don't like to talk about things which are a year ahead, but I am willing to tell you something of my plans. The fact is that Mr. [Thomas] Edison and I have been working for some years on an electric automobile which would be cheap and practicable. Cars have been built for experimental purposes, and we are satisfied now that the way is clear to success.”
THE INDUSTRY TODAY…
As Meineke dealers, one of the hottest topics in your
An early EV prototype, operated by Fred Allison, an electrical engineer from Detroit tasked with designing the motor.
community may be the rise of EVs and how the industry will evolve to accommodate the new technology. By observing how industry professionals approached EVs in the past, dealers of today can start to anticipate the kind of manpower it may take to handle the introduction of these new vehicles to your shops and to society at large. EVs are not a brand-new concept, despite how brand-new they may seem; if the automotive industry was prepared to approach the possibilities of EVs in the 1910s, today’s dealers should rest assured that the industry has the potential to transition into the future of transportation smoothly.
MEMBER LISTING
Support the Vendors That Support Your Association
FRANCHISEE SPOTLIGHT
What inspired you to become a Meineke dealer? Have you been a franchisee before with other brands?
I am passionate about the franchise process and enjoy the entrepreneurial spirit with a solid brand behind the business. I have a franchise background; I came from the Jiffy Lube franchise world where we operated 375 stores across 20 states.
In your opinion, what stands out about the Meineke brand?
Over 50 years of success and consumer trust. Meineke has a proven formula that, when consistently followed, leads to success for the franchisee and the ability to provide the total car care service from maintenance to repairs.
The Meineke Corp. team has been great. They are a positive support for our team, and it is nice to see them actively engaged in our base business while looking for new opportunities such as EV. It’s good to see alignment between the franchisee and franchisor.
What are some goals you have for your business in the short and long-term?
PARC Auto’s acquisition of Brycor Inc. allowed us to enter the Meineke family with one of the best operating portfolios in the network. In 2024, we are looking to expand on this local market
Don Hill
COMPANY NAME: PARC Auto
NUMBER OF STORES: 19
STATES YOUR STORES OPERATE IN: 4
success and scale our organization for future material growth through new Meineke stores and acquisitions.
Describe your best recent business decision.
Joining the PARC Auto team in December and developing a strong leadership team with a good mix of existing employees and new hires that are aligned on our strategic and tactical plans. Without great people none of this works!
What do you feel is the biggest challenge currently facing franchisees?
I think the biggest challenge for any franchisee, be it Meineke or other, is to consistently provide an excellent customer experience across all their stores every day. The model works, but it is hard to consistently implement. The cool thing is that when you do it well, the results are immediate.
What is the biggest industry change that you have seen since you started?
I think the expansion of competition as prior niche businesses, such as fast lubes and tire stores, are expanding their services to offer total car care.
Tell us a little bit about your family.
My wife and I are proud parents of three teenage children (two boys, 18 and 16, and one girl, 14) with my oldest getting ready to graduate from high school in May and head to college this fall.
What is your favorite make and model of car?
This is the toughest question. There are certain cars I see on the road or at car shows and just love the way they look and ride. I will give you two from opposite sides of the spectrum: a 1974 Ford Bronco and the Porsche 911. Spoiler alert: I don’t own either.
Spotlight on the 118th Congress: Sen. Roger Marshall (R-KS)
Q What skills or perspectives from your background do you apply as a public official?
A
I may be a doctor by practice, but I gained business experience by owning and operating a hospital in Great Bend, Kansas. I will always fight for fiscal responsibility and use the same principles I used to run my hospital when considering bills and voting on packages.
Q What do you see as the current biggest threat to small-business owners?
A
Without a doubt, it’s burdensome regulations. Just take the latest joint-employer rule as an example. The vague language as to what constitutes “indirect control” provides a litany of uncertainty for franchises everywhere and threatens the freedom that franchisees have in running their business. Regulations in 2022 put $3 trillion worth of costs onto the economy. It’s unsustainable to continue this path, which is why I have fought tooth and nail against the rulemaking coming out of this administration.
A Feedback directly from Kansans is essential for our work here in D.C. My staff and I make an effort to host roundtables across Kansas with small-business owners, financiers and Small Business Administration (SBA) officials to make connections for small-business assistance, but also for our team to hear what’s happening on the ground.
Q What seat do you believe franchisees have at the table and what do you do to support them?
Q What challenges have you helped small businesses in your state overcome?
A Aside from fighting overregulation, I’ve fought to keep taxes low for businesses. The Tax Cuts and Jobs Act led to the most prosperous economy of my lifetime, and I will fight to continue the successful breaks and cuts as we look to pass a tax package next year. The more the federal government can keep money in the pockets of small businesses, the better off our communities and the economy will be.
Q
In what ways are you seeking feedback from small businesses in your state and using that information in Washington, D.C.?
A Franchisees should absolutely help steer the conversation. The franchise business model operates in so many different areas that policy affects, and we have championed measures in the Senate that provide a friendly environment for franchisees. Case in point, our bill, the Save Local Business Act, would solve the joint employer issue we see today by codifying a narrow standard of “direct control” to establish a joint-employer relationship only if a parent company works on day-to-day functions such as hiring, firing, payroll, shift scheduling and other important aspects of managing a business. Franchisees should have the freedom to run their businesses how they see fit and establishing a narrow joint-employer standard helps preserve that freedom.
Q What message do you have for small-business owners struggling with supply chain issues, inflation, staffing and other prevalent issues of today’s day and age?
A
We hear you and we are fighting for you, but we need someone in the White House who understands this pain, who has run a business and signed employees’ checks. We need someone who fights against rampant inflation and sky-high interest rates. Attitude is a reflection of leadership; right now we are going in the wrong direction and Americans are feeling it.
LOOK LISTEN READ
Look, Listen, Read is a quarterly compilation of some of the most highly rated and reviewed apps, podcasts, books, websites and other resources. MDA does not support or endorse the use of these tools, which merely serve as a guide to exploring a new level of knowledge and productivity for your business.
1
Social Geek Radio is a podcast hosted by the Franchise News Podcast. The show covers a variety of topics related to franchise growth and digital marketing. The show has a lot of interesting guests and offers useful information, and is a great way to stay on top of business trends.
2
Figma is a web-based design tool primarily used for interface design and prototyping. It allows designers to create, collaborate on and share design projects in real-time. Figma is known for its robust features and capabilities that make it a popular choice among designers and design teams.
3
In the Franchise Bible, franchise expert Rick Grossmann and franchise attorney Michael J. Katz impart decades of insight and advice on what it takes to make your franchise operation successful. Grossmann and Katz share expert tutorials, tricks of the trade, and access to sample franchise documents, checklists and questionnaires designed to get you organized, support you through the process and get your new franchise off the ground.
4
Co-hosted by the dynamic duo Ryan Hicks & Zack Fishman, Modern
Business is an award-winning, interview-style podcast that spotlights franchising’s brightest executives. Follow along each week as we uncover franchising’s top technology trends, the hottest franchise industries to invest in, ways to improve your own franchise business and how to potentially become a franchisee.
5
Naranga is a comprehensive franchise management software designed to support the operations of franchise businesses. It offers a suite of tools that help franchisors and franchisees manage various aspects of their business efficiently.
6
David Finkel’s and Jeff Hoffman’s, Scale: Seven Proven Principles To Grow Your Business and Get Your Life
Back teaches you to escape the self-employment trap by building a business rather than a job. It addresses overcoming obstacles in various business areas such as sales, operations and finance. You’ll learn to manage cash flow, systematize operations to reduce costs and increase capacity and create sustainable growth through efficient systems, empowered teams and intelligent internal controls.
7
ServiceTitan contracting software has a variety of products and solutions to choose from, designed to improve operational efficiency, enhance customer satisfaction and loyalty, and reduce costs. ServiceTitan keeps up with customers, employees, projects, payments and your performance.
9
8 The Franchise Friday podcast’s mission is to help individuals explore self-sufficiency as an alternative career. This podcast helps franchisees define their income, lifestyle, wealth and equity goals and provides education on the best ways to achieve them.
In Adventures in Franchise Ownership
author Christy Wilson Delk lays out what successful franchisees do that you won’t find in most owners’ manuals and includes her good, bad and really tough days before her successful exit 15 years later. Franchisees, like most small-business owners, experience times of extreme frustration and lapses in motivation, and often exit before reaching their potential and their goals. This guide explains how her Four Pillar to Pillars Approach helps all franchise owners get to the top tier of their franchise system.
10
Entrepreneur Weekly, hosted by award-winning broadcast professional, Alan Taylor, equips listeners with the critical information necessary to grow their business through practical advice and thought-provoking interviews.
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Trends in Gen-Z Drivers
Unlike other generations that were eager to hit the road as soon as they received their license, Generation Z (Gen Z) is a bit skeptical. Only 25% of 16-year-olds have their driver’s licenses.
2 They are not the best of drivers either. Gen Z is reported to have the highest rate of accidents, DUIs and other driving issues when compared to other generations.
3
When they do purchase their own vehicles, they are more than likely not going to get the newest model. Around 55% of Gen Z purchase their vehicle used.
4
With most of Gen Z just starting in their professional lives, many cannot afford to get regular tune-ups. In fact, 68% of Gen Z do not have the funds to better take care of their cars.
5
Twenty-seven percent even go as far as to drive with dull wipers, excessive emissions, low tire pressure and/or with low oil.
6
To save on costs, 23% of Gen Z is willing to undertake minor car repairs on their own.
7 Gen Z is most likely of all age groups to do their own oil changes, with 55% of them doing it themselves.
8
If Gen Z were to use a mechanic for car repairs, they would be 35% more likely to visit an independent mechanic.
9 This generation also spends the most on auto repair, spending on average $2,334 every five years.
10 Gen Z wants to drive sustainably as well, with 54% wanting to drive an electric vehicle in the future.
Sources: Bold TV, CBS, MarketWatch, NY Post, USA Today and Vehicle Service Pro
Preferred Partner Meineke Corp. + MDA
UpSwell Direct Response Solutions
Drive more customers to your service center with targeted direct response solutions proven to grow your business. No hassle, no hidden fees.
Meineke Payment Solutions
Meineke Corp , UpSwell Marketing and top financing partners have teamed up to create Meineke Payment Solutions; a game changer in smoothing out the finance journey for your customers. The majority of the 2024 Meineke franchisee award winners are already using Meineke Payment Solutions because it:
1. Simplifies finance applications for your customers.
2. Provides personalized customer guided assistance by financing professionals.
3. Reduces front desk personnel time invested.
4. Increases monthly financed repair orders and monthly revenue.
MDA's 2024 Vendor Appreciation Event:
The 2024 Meineke Dealers Association (MDA) Vendor Appreciation Event was a dynamic and engaging gathering that kicked off with a productive MDA Board meeting in Dover, Delaware, on June 17. The subsequent day was filled with valuable discussions and insights as attendees had the privilege of learning from our esteemed vendor partners including TOPDON, Advance Auto Parts, ALLDATA and 1stMILE. These interactions provided a deep dive into the pressing issues and challenges faced by dealers including labor rates, mechanic compensation and best practices, fostering an environment of collaborative learning and knowledge exchange to enhance our collective business acumen.
Furthermore, the event featured a keynote address by Bill Strickland from L&W Insurance, a distinguished veteran with extensive experience in small-business management and success. Strickland’s profound insights and actionable advice on fortifying business resilience and navigating challenging times resonated deeply with
attendees, leaving an indelible and thought-provoking impact.
The event also provided an opportunity for exclusive guided tours, including a visit to the Delaware State Police Museum, followed by a delightful evening cocktail reception. These activities offered valuable networking prospects and facilitated the establishment of meaningful relationships and connections among the diverse participants.
The pinnacle of the event was undoubtedly the exclusive guided tour of the Dover Motor Speedway, where attendees were treated to adrenaline-pumping pace car rides in the iconic Mustang GT. The rare and exhilarating opportunity to drive your own cars on the track for a few heart-pounding laps added an extra layer of excitement to the event, with Dave Repass setting an impressive record during the ride, further enhancing the overall thrill and success of the event.
The association has fall regional meetings to look forward to in the coming months, so keep an eye out for further communications from MDA!
Attendees enjoy the cocktail reception at the Delaware State Police Museum.
The Delaware State Police Museum welcomes MDA with a guided tour and cocktail reception.
Success and Thrills
An attendee takes his swing at TopGolf.
Attendees had the opportunity to take in the scenery around the iconic track.
The Mustang GT pace car attendees used to speed along Dover Motor Speedway.
The Newest Generation of Mechanics
As years pass, not many industries are quite as representative of generational changes as the automotive industry. The vehicles people used several decades ago look and function differently than the most popular vehicles one might find on the road today. Within the past few years alone, the prevalence of electric vehicles has climbed with no sign of stopping. There's an emerging era in the automotive industry centered on technology and automation, and this has changed the landscape of transportation regarding the varying types of vehicles people see every day on the roads. Just as cars themselves are evolving, the people who are responsible for the production of said cars are changing as well. As of 2022, Gen Z made up 12.8% of the workforce, and they're expected to make up almost a third of the workforce by 2030. This includes the workers who make up the automotive industry, like mechanics. The face of the profession is changing as the newest generation trickles in — and this transition, coupled with the growing popularity of EVs, could make for an automotive industry that is both revitalized and, in some ways, unrecognizable.
Gen Z is also changing car culture in that a growing portion of them are lacking licenses and/or ownership of personal vehicles.
While the industry as a whole adapts to the entrance of Gen Z workers, individual car care businesses may need to find ways to tailor to the new talent they’re aiming to attract and retain. For Gen Z, the values they look for in an employer are distinct and may differ from the values of other generations already in the workforce. Young employees are searching more and more for workplaces that prioritize things like flexibility/work-life balance, diversity, equity, inclusivity, mental health support and more. Business owners in the automotive industry, including Meineke dealers, may need to prepare to restructure their businesses to create more compatibility with the newest generation of auto-mechanics they aim to employ. This can be accomplished by:
• Embracing diversity, equity and inclusion (DEI) workforce strategies, such as investing in DEI training for management and staff.
• Evaluating whether their business maintains a strong collaborative work culture.
• Consider how they’ll incorporate sustainability into everyday operations.
Known for their digital fluency, Gen Z is driving a shift towards more technologically integrated workplaces, necessitating advancements in IT infrastructure. For an industry that relies on technological advancements, keeping the equipment in the hands of Gen Z mechanics as updated as possible may be the key to encouraging these workers to remain engaged and loyal to the industry. In order to make younger employees feel that they have all the resources they need to be their most productive selves in the workplace, it may be worthwhile for any dealer to consider what technology in their car care center(s) could be due for an upgrade. Repairing electric and hybrid vehicles constitutes a unique skill set, and the newest generation of mechanics will likely work on such vehicles with growing frequency. Ensuring that auto shops across the country are equipped with tools that can improve efficiency
and precision, all while giving younger mechanics a sense of familiarity with the kind of tech at their fingertips throughout the day, can be a massive step toward integrating the new generation with an industry that holds so much history.
by TYLER RYAN
The automotive industry is not only impacted by the emergence of Gen Z on the production side; the ways car companies market themselves and their products are also dependent on the current consumer base — and Gen Z has inevitably become a decent portion of it. According to a poll conducted by the New York Post, approximately 76% of Gen Z reported purchasing their first vehicle before they were 21. In comparison, 56% of millennials reported purchasing their first vehicle at that age. The same poll reveals that as more members of Gen Z look to purchase cars, certain defining characteristics of the generation become apparent in their buying habits. Gen Z-ers’ major considerations when looking for a new car, aside from price, include fuel efficiency, longevity, reliability, safety rating and comfort. Gen Z is also changing car culture in that a growing portion of them are lacking licenses and/or ownership of personal vehicles. Their preference for flexible, on-demand services over traditional ownership models is also fostering the growth of car-sharing and subscription-based services. This shift is prompting automotive companies to diversify their business models and explore new revenue streams beyond car sales. Additionally, Gen Z’s value for transparency and corporate social responsibility influences marketing and branding strategies, requiring companies to demonstrate genuine commitment to ethical practices and sustainability. Cost contributes to these trends, as well as Gen Z’s overall awareness of climate change and the potential part that today’s vehicles play in the phenomenon. Their environmental consciousness is accelerating the shift towards sustainable practices, pushing manufacturers to innovate in developing eco-friendly vehicles and reducing carbon footprints. With these factors becoming increasingly important to Gen Z buyers, the automotive industry will likely need to adapt its products and business practices to address these emerging buyers’ needs and values.
While the industry as a whole adapts to the entrance of Gen Z workers, individual car care businesses may need to find ways to tailor to the new talent they’re aiming to attract and retain.
Ultimately, Gen Z’s entrepreneurial spirit and eagerness to learn is bound to bring something unique to the automotive industry, as they're mastering their trade during a time of tremendous change. As the newest generation of mechanics rises, their entrance into the automotive industry is set to catalyze significant transformations in how the community of dealers at large operates and evolves.
TYLER RYAN is the communications editor for MDA. You may reach Ryan at 678-439-2300 or tylerr@elevanta.com.
Employers Need to Review Workplace Rules and Policies
Following Recent NLRB Decisions
OnAugust 22, 2023, we advised all employers –whether their workforces are unionized or not – about the National Labor Relations Board (NLRB) decision in Stericycle Inc. In Stericycle, the NLRB articulated its new standard in analyzing whether employer work rules are impermissible under the National Labor Relations Act (NLRA). Under the new standard, employers must use caution when creating a work rule or policy that could reasonably be interpreted to “chill,” restrict or prohibit an employee’s rights to protected concerted activity under Section 7 of the NLRA, such as an employee’s rights to support unionizing or engaging in concerted activity to improve working conditions. Such a rule will be presumed by the NLRB to be unlawful.
Since the Stericycle standard was announced, the NLRB has issued a series of decisions finding a wide range of work rules to be unlawful, ranging from prohibitions on insubordination to prohibitions on falsifying employment applications. What follows is a short digest of some of the work rules that have recently come under scrutiny by the NLRB.
Work Rules Concerning Disrespect
In United Electrical Contractors Inc., decided November 9, 2023, the General Counsel argued, and the NLRB agreed, that a prohibition on “disrespect toward supervision” violates the NLRA, because it could reasonably be construed by employees to prohibit protected concerted activity. The NLRB cited to Casino San Pablo for support, where the NLRB previously said, “the act of concertedly objecting to working conditions imposed by a supervisor, collectively complaining about a supervisor's arbitrary conduct or jointly challenging an unlawful pay scheme – all core Section 7 activities – would reasonably be viewed by employees as ‘disrespectful.’” The NLRB said the “disrespect” rule would reasonably tend to chill employees' exercise of their rights under the Act and under Stericycle is presumptively unlawful.
Work Rules
Requiring Honesty
Also in United Electrical Contractors Inc., the NLRB found rules requiring honesty on company records, including on employment applications, could reasonably be construed to chill an employee from leaving union-affiliated work history off of an application or falsely denying an intention to engage in organizing activity. The rule in that case did not refer to unions or unionization, but prohibited, “[d]ishonesty or falsification of any company records, including but not limited to employment applications and time entries,” and “[p]roviding false or misleading information to any company representative or in any company records, including the employment application, benefits forms, time entry, expense reimbursement forms and similar records.”
by MATTHEW GUERRERO
Citing to decisions that stood for the proposition that employees may lie about or omit their union employment or affiliation on applications, the Board found the above rules to be “overbroad” and stated that they interfere with the “rights of applicants and employees to falsely deny union affiliation or intent to engage in union activity, and to omit union-affiliated work history from their submissions.”
However, in General Motors LLC, decided January 24, 2024, the NLRB found a similar rule not to be overbroad and therefore legal. The rule there stated that “[f]alsification of personnel or other records” will be sufficient grounds for disciplinary action. In analyzing the work rule, the NLRB found that “no employee, though economically dependent on the employer and contemplating engaging in protected, concerted activity, would reasonably interpret the plain language of [this rule] to prohibit protected, concerted activity.” The NLRB further noted that the rule’s intent is to prohibit the falsification of personnel and other company
records, which the Employer had a legitimate interest in ensuring are accurate.
Because these two rules are very similar, employers need to narrowly tailor their work rules regarding honesty. The major difference between the two rules is that the improper rule in United Electrical Contractors Inc. explicitly referred to honesty on “employment applications” without creating an exception for union affiliation or union-related work history.
Work Rules Prohibiting the Restriction of Production
Also in United Electrical Contractors Inc., the NLRB found a work rule that prohibits, “[r]estricting production or influencing others to do so” unlawful. “I find that employees would reasonably construe the prohibition on ‘restricting production’ to encompass a prohibition on striking and picketing,” said the NLRB. Employees have a right to engage in those activities under Section 7 of the NLRA.
Prohibitions on Obscene or Abusive Language
Additionally, a rule against using obscene or abusive language was found to violate the NLRA because the rule was drafted “without stating that the rule was not intended to bar employees' Section 7 activity.” “The rule does not provide any additional context showing that it is meant to address only language that involves violence or other unlawful conduct or that it does not prohibit Section 7 activity. I find that a reasonable employee would understand this rule to interfere with statements that are protected by the Act.”
Employers should be aware that the NLRA has routinely decided that some profanity and even defiance must be tolerated. The NLRA protects employees even in instances where the employee is rude or disrespectful, and profanity will not bar an employee from invoking their rights under the NLRA. See, for example, NLRB v. Chelsea Laboratories
Prohibitions on Use of Telephones
Employers have to be careful in limiting employee cell phone use. “On its face,” said the NLRB on such a rule, “this rule gives the employer unfettered discretion to decide if an employee may use their personal phone at any time and in any area of a facility, including during breaks and other periods that are an employee's own time. Employees would reasonably conclude that they could not, without obtaining the [employer's] authorization, engage in activities such as using their own smartphone to call a union representative during a lunch break.”
The work rule in question, which simply prohibited “[u]nauthorized use of telephones” was thus found to be unlawful. The General Counsel argued, and the NLRB agreed, that “requiring an employee to seek the approval of management in order to use their personal phones for Section 7 communications is tantamount to surveillance of such activities, and would tend to have a chilling effect on employees' exercise of their rights.”
conditions or seeking the support of others to improve them. The rule, which prohibited “[d]iscourtesy to a customer, vendor, or the general public resulting in a complaint or loss of good will” was deemed unlawful.
A similar rule more recently in General Motors LLC, which stated discipline could result from “making or publishing of false, vicious or malicious statements concerning any employee, the Company, or its products” was found to be unlawful. Citing to precedent, the NLRB said that the Board has consistently found that rules prohibiting the making of “false, vicious or malicious statements” violate the NLRA because “they include within their proscription false statements that may nonetheless be protected.” In other words, the prohibition on “false . . . statements” is too broad. For, in the same decision, General Motors LLC, the work rule that discipline could result from “[a]busive language to any employee or supervisior” was lawful. The distinction is that the prohibition on false statements could reasonably relate to and deter an employee from engaging in their right to protected, concerted activity, but a similar prohibition on “abusive language,” without any further context, would not reasonably chill an employee’s protected speech.
What Employers Can Do
In the confusing wake of Stericycle, employers are often left not clearly knowing whether their work rules may be deemed presumptively unlawful under the NLRB’s current standards. Employers, however, are not left without some guidance. First, the more narrowly tailored their work rules are to legitimate and substantial business interests, the less likely they will be deemed unlawful. Even presumptively unlawful work rules can survive scrutiny where employers can show that the work rule “advances a legitimate and substantial business interest” that cannot be advanced “with a more narrowly tailored rule.”
Employers must use careful language and draft their work rules with an eye toward how the NLRB may view it. As seen above, very broad language can be interpreted to encompass and impede upon an employee’s Section 7 rights. All employers should be reviewing existing work rules to determine whether they can be construed as unlawful under the Stericycle standard and revise them as needed. Caveats that a policy or work rule is not intended or designed to impede upon an employee’s Section 7 rights can also aid employers in keeping their policies and handbook provisions lawful. Additionally, avoiding anti-union language anywhere throughout an employer’s policies and handbooks will also help avoid an interpretation that any given rule is designed to chill employees’ Section 7 rights.
If you have questions about how to comply with the recent NLRB decisions, contact your servicing Laner Muchin attorney, or Laner Muchin partner Robert T. Bernstein may be reached at rbernstein@lanermuchin.com.
Prohibitions on Discourtesy to Customers, Vendors, or the General Public
Citing to precedent, the NLRB also recently said that employees would generally construe a broad prohibition against “disrespectful” conduct and “language which injures the image or reputation” of the employer as encompassing Section 7 activity, such as employees' protected statements objecting to their working
LANER MUCHIN is a firm that specializes in employment-related litigation, labor relations, employment law counseling, employee benefits, executive compensation and business immigration matters. Laner Muchin may be reached at www.lanermuchin.com or (312) 467-9800.
Avoiding The Gutter:
As a customer experience speaker, I often share how the smallest interactions can impact a customer's perception of a brand. It can be in negative or positive ways. A recent experience at a bowling alley brought this to light in an unexpectedly vivid way.
While enjoying an afternoon of bowling with my son, a seemingly minor interaction on the lane next to us caught my attention. A young man who was in his mid-20s was there with his girlfriend and he was struggling at the beginning of his first game.
After his third consecutive gutter ball, an employee happened to see this. The employee walked by and jokingly offered to put up the bumpers for him. In my mind, I found this to be rather amusing. It’s the same kind of joke I would make to a buddy of mine if we were bowling together, and he did the same thing.
At the same time, I realized how embarrassing this moment must have been for the guy in front of his girlfriend.
Having been a league bowler at this particular alley for the past year, I knew the employee who made the comment. I also knew her intention at that moment was light-hearted. Had this been a regular bowler at the alley, it likely would have been received very differently. Unfortunately, the man was clearly embarrassed. He likely found the experience to be rather emasculating.
I’m a big believer in having fun with your customers (when appropriate). You should always be on the lookout for opportunities to interact and connect with them throughout your daily work routines.
When I worked on Big Thunder Mountain at Walt Disney World, we’d see thousands of people every day. As cast members, we all tried our best to interact with as many guests as possible in the brief moments we had with them. We knew it was close to impossible to have a moment with every guest. But, with that mindset, we knew we had the opportunity to elevate the experience for a large number of guests every single day.
You should always be on the lookout for opportunities to interact and connect with them throughout your daily work routines.
Critical Aspects of Exceptional Customer Service:
1. Empathy in Customer Experience:
Understanding your customer's feelings and situation while doing business with you is crucial. Connecting and having fun with your customers is a key component to building ongoing loyalty. However, your connection should be customized to each customer based on their unique situation. What might be a joke in one context can be embarrassing or hurtful in another.
by DANNY SNOW
This particular interaction at the bowling alley illustrates a critical aspect of customer experience: reading the situation and understanding the customer dynamics. As I mentioned earlier, joking with a friend or one of their regular customers would have likely been received with laughter.
But, the same joke to a customer that you don’t know in this particular setting resulted in a very embarrassed customer. Embarrassing your customer isn’t a winning strategy to build loyalty.
Every interaction contributes to the overarching perception of your brand.
2. Training for Customer Service
Excellence: Proper training in customer interaction can help avoid these pitfalls. Employees should be equipped with the skills to engage in a positive manner with customers, recognizing the thin line between a light-hearted comment and one that might be offensive.
3. Building Brand Image and Customer Loyalty: Every interaction contributes to the overarching perception of your brand. Negative experiences, even if minor, can overshadow previous positive impressions.
The incident at the bowling alley serves as a potent reminder of the complexity of customer interactions. It's not only about what we say but understanding the broader context in which we say it. As businesses, it's our responsibility to cultivate an environment where our customers feel respected and valued at every turn. By fostering empathy, training employees and always considering the context, we can avoid embarrassing our customers and build lasting, positive relationships.
Our actions, no matter how small, can impact our customers’ perception and loyalty. Strive to make every moment with your customer count!
DANNY SNOW is a sales and marketing director and professional speaker with over 10 years of experience in customer service, leadership and training. With a proven track record in driving business success and fostering strong teams, he specializes in helping organizations achieve excellence through employee development and exceptional customer service. Danny can be reached at www.snowassociates.com or at (407) 294-1855.
Thoughts on Excellence: Five Sustained Focused Efforts
Iused to think that businesses were remarkably complicated and beyond my comprehension.
Then I learned that I was wrong.
Businesses are remarkably simple. A business creates relevant value for an intended audience, charges for that value, and works to continually improve that value for that audience. That’s it. It’s not complicated at all. And it’s true for small, medium and large businesses.
I’ve also learned that there are a few things that all successful businesses have in common. One of those things is they sustain focused efforts.
The Crucial Role of Focus
The number one reason that I have seen why businesses fail is that people lose their focus. There are literally dozens of reasons why people let this happen. They chase a hot new idea that people are talking about, they get bored with what they are doing, they get tired of the infinite number of little challenges that they have to deal with as an entrepreneur, they start bickering with other people on the team, and on and on.
The number one reason why businesses succeed is that people sustain focused efforts. They keep on keeping on and they keep getting better at what they are doing. I’m always amazed at the incredible number of different ways that businesses provide value to customers and get paid for it. Please don’t fall into the trap of thinking you have to pick the perfect industry to be in. It’s not true. If you identify something that would be of real value for a certain group of people who are capable and willing to pay you for it, then you have the makings of a successful business. However, that’s just the starting point. The more important key to success is to wake up every day and sustain focused efforts.
You have to be wise with money and not go into the poor house through your own stubbornness.
I thought about giving you a very long list of the many, many different industries and methods that people I’ve known have used to make a very good living as entrepreneurs, but then I realized that’s not necessary.
What is necessary is for you to realize that one of the most important keys to success as an entrepreneur is to sustain focused efforts. You have to be wise with money and not go into the poor house through your own stubbornness. You may need to adjust the value you are delivering or the audience you are pursuing until you find the true sweet spot where you are delivering relevant value for a specific audience who is capable and willing to pay for that value. You may need to improve to a point that what you are offering is truly better than your competition. However, over the long term the key is to sustain focused efforts.
When money is short, adjust your spending, but sustain focused efforts.
When a long-time customer decides to stop working with you, sustain focused efforts.
When a potential great customer decides to go with someone
else, sustain focused efforts.
When you injure yourself playing pickleball because you decided you needed a break from too much work, sustain focused efforts.
When you feel lousy or worn out, take a vacation, give your mind a rest and then sustain focused efforts.
by DAN COUGHLIN
I encourage you to study successful entrepreneurs, people like Oprah Winfrey, Sam Walton, Steve Jobs or the person in your neighborhood who built a successful enterprise in any industry. One secret that will reveal itself to you is how that person sustained focused efforts over an extended period of time.
Since 1998, DAN COUGHLIN has worked with serious-minded leaders and executives to consistently deliver excellence. He provides Executive Coaching, Leadership and Executive Development Group Coaching Programs, and seminars to improve leadership and management performance. His topics are personal effectiveness, interpersonal effectiveness, leadership, teamwork, and management. He also guides strategic decision-making meetings. And now he is also focused on helping people to develop their entrepreneurial mindset. Visit his free Business Performance Idea Center at www.thecoughlincompany.com
THE PROCESS PRESSURE PRESSUREPOINTS POINTS
ARE PERSONAL PERSONAL
Much of what plagues organizations these days has to do with their processes. And the processes have everything to do with the personal processes of the individuals involved. (Read between the lines here: “organization” can refer to two people in a relationship, as well as a multi-national corporation.) Process vulnerabilities are challenged with stress, which is mounting daily in our world because of the increasing volume and speed of input that changes things. Most of you reading this have received more priority-shifting and project-creating stuff in the last seventy-two hours than your parents probably received in a month.
Change always produces pressure on a system, even if it is totally for the best. Because systems are created to match the needs, direction and outcomes of the organization at a certain point in time, when times change and those drivers are altered in any way, it puts stress on the organism until it adjusts appropriately. How well does it respond to new situations and input? What happens to the systems, the grooves, the procedures, when something out of the ordinary, something unexpected in substance or scope, lands on the radar? And not just the unexpected stuff out of left field –what happens when already-foreseen new goals and horizons are identified and tossed into the organization to implement?
Pressure on a system will always show up at the weakest connection points. Where are they, organizationally? The same places they are individually – avoidance of decisions; unclear, incomplete or non-existent communication; ambiguous accountabilities; and swollen inventories of potentially conflicting commitments.
One of the greatest sources of stress and saboteurs of productivity is mid- to senior-level people avoiding action decisions about situations when they first arise.
Example: A new situation occurs (a competitive product launched, a senior executive fired, a new regulation enacted, an irate neighbor, etc.) Someone is aware of the situation senses that something ought to be done about it, but doesn’t decide what, exactly, needs to be done. People who ultimately will need to know about the problem or issue to deal with it are not informed. There is a lack of clarity about who owns the resolution of the situation and therefore no one has their gut tied enough to it to move it to completion (amidst the chaos of everyone else’s current set of agendas). And anyone aware that they have some involvement with the situation or its impact feels the pressure of an “open loop” holding some piece of their psyche hostage, contributing further to overloaded circuits. This then leads that person to avoid action
decisions, and the whole cycle becomes contagious. Does any of this sound familiar to you, about something in your universe, as you read this? Virtually everyone I have ever coached has identified at least one if not several such scenarios going on, at that moment.
by DAVID ALLEN
The insidious factor is that the faster things change, the easier it is for these unproductive and unhealthy syndromes to emerge and multiply. And the more senior the person involved in these less-than-ideal practices, the more they are magnified in consequences for the culture, simply because his/her micro is a lot of other people’s macro. Ever been whipped around at the end of a chain of folks hanging on to each other on an ice rink? One of the greatest sources of stress and saboteurs of productivity is mid- to senior-level people avoiding action decisions about situations when they first arise; waiting until the heat gets so hot (from their boss, the client or the circumstances) to determine what needs to happen and who needs to do it; and at the last minute spewing the resultant crisis through multiple levels in the organization, creating pain, frustration and the derailment of process and morale.
The bad news is that this seems almost universal, in even the best of environments. The good news is that there are things that can be done to improve those practices. But it’s not handled by blaming individuals or preaching platitudes about productivity and quality. It can only be improved by a change in the behaviors of all the people involved. If physical and mental environments were kept cleaner, focus was more specific on discrete inputs, systems made seamless and more efficient and kick-start actions were determined and appropriately allocated on open items from the start, these weak spots in organizational process can be plugged up. Whole cultures can move themselves up the food chain in constructive responsiveness to change. We’ve seen this happen in varying degrees, depending upon the buy-in of the most visible players and whether those old dogs are willing to learn new tricks.
The most successful executives/professionals/people keep their decks clear, make decisions on the front end, dispatch the results to trusted people and systems, track commitments rigorously (their own and others’) and get physically engaged taking actions on the projects they own. Those are learnable behaviors, able to be systematized, that build capacity for dealing with the next surprise as the next opportunity.
After decades of in-the-field research and practice of his productivity methods, DAVID ALLEN wrote the international best-seller Getting Things Done (GTD). Published in over 28 languages, TIME magazine heralded it as “the defining self-help business book of its time.” In 2015, he released a new edition of the book, with new insights, updates, and discoveries about the GTD methodology and its many personal and professional applications.
Understanding the 2024 Beneficial Ownership Reporting Requirements:
What U.S. Businesses Need To Know
Most businesses in the United States are mandated to submit ownership details to the Financial Crimes Enforcement Network (FinCEN) by the deadline at the end of 2024. This directive, stemming from the Corporate Transparency Act (CTA), aims to identify the true owners or controllers of both domestic and foreign enterprises operating in the U.S.
The US Treasury Department is expected to challenge this ruling. Meanwhile, requests for postponing the reporting deadline
contributed by Mize CPAs
have been made by organizations like the American Bar Association, the American Institute of Public Accountants (AICPA), and the American Bankers Association, but no additional legal actions are currently underway.
As it stands, the reporting deadline of December 31, 2024, remains in effect for the majority of U.S. businesses. Companies are advised to proceed with preparations to meet this requirement. Businesses established before January 1, 2024, have until
January 1, 2025, to file their initial reports. Businesses established during 2024 have 90 days after registration to comply, and those established from 2025 onwards have 30 days.
A recent court ruling has modified the application of the CTA.
The reporting process is straightforward. Businesses should prepare by collecting the following information:
• The business's full legal and trade names, if applicable.
• Current complete U.S. address.
• Jurisdiction under which the business was formed (state, tribal, or foreign).
• IRS Taxpayer Identification Number.
A federal district court in Alabama has specifically exempted the National Small Business Association and its members from these requirements. This exemption remains effective while the court's decision is under appeal by the Department of the Treasury. Businesses not affected by this ruling are still required to comply with the CTA.
Additionally, collect for each beneficial owner and company applicant:
• Full legal name
• Date of birth
• Current complete address
• A unique identifying number and issuing jurisdiction along with an image from a valid document such as a US passport, state driver's license, or a state, local government, or tribal issued ID document.
For further details or to file a report, visit the BOI E-Filing System on the FinCEN website (boiefiling.fincen.gov).
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