In the past, some of the top concerns for business owners in the towing industry were managing risks associated with property crimes, liability issues, and employee accidents or deaths. Today, those are still priorities, but new labor issues are taking center stage. Being aware of the impact of labor on today’s towing industry will help you make better decisions for your company.
Did you know that nearly 40% of the cost of running a towing business goes directly to employee salaries and benefits? With costs already eating up a significant share of income, it’s not easy for owners to manage wage increases, and that’s exactly what most companies are doing this year.
Many owners and managers have found attracting and retaining good employees more difficult than ever before. With growing competition for drivers from companies such as Lyft, GrubHub, and Amazon, the pool of qualified applicants is shrinking. With fewer regulations and greater flexibility for working hours and conditions, much of the younger generation is swayed to accept jobs in this new “gig economy.” From 2016 to 2019, the average total labor cost for towing companies increased by 9.12%–a massive hit to the bottom line.
The only way most towing companies can compete for labor is by providing higher wages and more benefits. Wages for towing operators varies significantly based on regionality. Trucker’s Training, however, reports an average salary of $53,471 (about $25 per hour) for tow truck drivers, not including additional benefits such as health insurance, time off, and retirement plans. That average was closer to $12 to $15 per hour three years ago.
How can you adjust your business to overcome these challenges?
- Implement new technology. New towing management and dispatch software solutions will streamline the process for employees from accepting jobs to mapping the fastest routes and analyzing new business opportunities. Electronic billing systems may reduce administrative burdens and allow you to redistribute financial resources to pay for additional driver costs.
- Consider new recruitment opportunities. Partner with your local high school for job shadowing and internship opportunities. Many students may not realize the opportunity to begin a career in the towing industry. This is a great way to introduce them to your business.
- Use the best equipment on the market. Since employee safety is a top priority for you and your team members, giving them the safest and most easy equipment on the market to use in their jobs will increase their job satisfaction. If you haven’t considered an investment in Collins Dollies, now’s the time to check it out.
Having the right equipment can make all the difference for your business.
If you haven’t checked out our Hi-SpeedⓇ Dolly and Carrier Dolly systems, you’re missing out on one of the best investments you can make in your towing business.
Collins Manufacturing has been the industry leader in towing equipment for 45 years. Our Hi-SpeedⓇ Dolly and Carrier Dolly systems make towing vehicles from even the most challenging situations safe and simple for your crew. Our safety ratchet system prevents injuries to employees from slipping grips and prevents the vehicle from dropping. When your workplace and employees’ safety matters, choose Collins. Contact us today to learn how you can implement Collins towing equipment in your company.
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