Boyd Group’s Year-End Report Shows Effects of Automotive Industry Challenges

The Boyd Auto Repair company is showing steady improvement in the first half of the year 2022 despite being affected by labor and supply chain shortages that hit the industry as a whole due to issues related to the pandemic. “Unlike one year ago, demand for Boyd’s services is continuing to substantially exceed capacity,” says Tim O’Day, President and CEO of Boyd. “The ability to service demand continues to be constrained by labor availability and parts supply chain issues, with the accompanying margin pressure continuing into the first quarter of 2022.”

Boyd has succeeded by putting focus on negotiating rate increases from existing clients, highlighting problems in the industry and that in order for Boyd to serve their needs properly, the proper funds must be available. These challenges included $4 million on labor costs, and a total operating cost of $129 million to navigate an extremely tight workforce.  The company still managed to increase their sales 19.9% from 2020 to 2021, a total of $1.9 billion, all while continuing to open over 100 new locations. 

Tim O’Day believes the pandemic has shown what will be necessary to properly run businesses in the future. At the top priority to remain competitive, he sees new labor as paramount, and has established programs to develop and train the technicians so sorely needed in the future of the industry, but in short supply as of now. “We have to attract new labor into the industry,” he says.  The cycle of challenges suffered in the auto industry will remain unsolved…“Until we build our labor to the point that we can service this work.”

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#work #sales #future #automotiveindustry #supplychain #business

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