Staying Educated Archives - Transmission Digest
Looking Back and Looking Forward

Another year comes to a close and we need to review the past 12 months and prepare for the coming year. More than a half a century working on cars has taught me that there is no point at which we can stand still without the technology passing us by. Our industry is in a continuing consolidation as larger companies acquire smaller ones to increase their share price. At a certain point, a large corporation cannot increase sales and cut costs fast enough to show growth and increase shareholder value, so acquisition is the path to a bigger, better bottom line. Repair facilities (once called trans shops) now are adding other services to transmission repair to increase their own cash flow and stay in business. The quality of late-model vehicles has improved dramatically due to the advent of computer control and Cad-Cam design. Cars and trucks now are generating fewer warranty claims, which affects the trans shop/repair facilities as well as the car-dealer service departments. Dealerships no longer have the cushion provided by numerous warranty claims, and have become a major competitor to the aftermarket independent shops. As in nature, only the strong survive. How do we survive and increase our profitability and cash flow in this ferocious environment? That is the question to be discussed.