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Wednesday, October 1, 2003

Where's Our Future

(mthurber@pbimedia.com)

The August editorial about aviation mechanic wages seems to have struck a chord. Letters from readers have been pouring in. Many readers say that they are considering or have already quit aviation because the wages and benefits are so bad compared to other industries. I have pointed this out before: the industries that compete for technical personnel often deliver better wages and benefits compared to aviation maintenance. For example, the high-technology computer industry wouldn't dream of starting a new person out with a puny week of vacation, yet that is common in aviation.

Benefits are improving in aviation maintenance, as shown by our annual salary survey, but we are still behind other industries. And these industries compete hard for the people we're trying to hire.

I know that there are many aircraft mechanics out of work today and things look bleak, but the economy is improving, people are flying, and there is even surprising strength in the general aviation segment. There is no way that aviation mechanics are not going to be needed.

The point of the August editorial was to note the interesting contrast between labor rates charged for various occupations. Aviation maintenance ranked fairly low, yet of all the occupations listed, aircraft maintenance was the only one where the goal is keeping people safe in a tube shooting through the atmosphere at up to 500 miles per hour.

When I bring up the contrast to people who operate maintenance shops, they wring their hands and worry that they can't pay their people better. They don't see any way that they can raise their low labor rates. Interestingly, those who have raised the shop labor rate have not experienced a decline in business.

Why is it that aviation people feel guilty about high labor rates? Do we think we're doing owners a favor by charging so little that we can't afford to buy tools, pay for insurance, keep the shop maintained, and offer excellent� wages and benefits to our employees?

Many shop managers complain that in their local area, they are having a hard time finding good mechanics. Might that have something to do with their relatively low labor rates?

The point here is not to criticize those of you who are charging artificially low labor rates. The point is, if you don't figure out how to pay your people better and offer benefits comparable to those of the industries that compete for technical people, don't expect to stay in business long. It's that simple. We aren't going to have an industry if we can't figure out how to make careers in our industry worthwhile. We can complain all day about all the problems that we think are causing us not to be able to charge what we're worth. But unless we do charge what we're worth, we shouldn't be surprised when we're forced into bankruptcy.

What can you do if you're stuck between the customer who demands lower costs and the mechanic who wants to quit aviation for a better-paying industry?

� Figure out how to cut costs for your owners so you can bring in more work. If your owner flies more than 200 hours a year, have you created a custom maintenance program for them that isn't just 100-hour inspections but is more like a progressive inspection?

� Determine what jobs are the most profitable for your company and focus on doing those.

� Teach your mechanics how to spot opportunity. Are they aware of all the upgrades that are available for the aircraft they work on? Wouldn't it benefit the shop and the aircraft owner if your mechanics were diligent about pointing out upgrade opportunities as they work on the aircraft?

� Stop giving away time. If you do work, charge for it. Why does everyone think it's unfair to charge a customer for looking up ADs and service bulletins or other paperwork? It costs you money to provide the service; charge for it.

� Be there when your customers need you. Have you surveyed your customers to see if they would prefer weekend, evening, or night hours? A good example: if you do maintenance for a flight school, why not run a night shift for that work? These airplanes usually are sitting all night. The more uptime or availability you create for your customers, the more they can fly and the more money they make.

If you do whatever you can to make life easier for your customer, to make sure their aircraft is available, reliable, and safe then they won't care how much you charge per hour, and you'll be able to spend more on the people who count, your employees. The alternative is to quit this business. And that wouldn't be good for anyone.


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