New data predicts 7500 full time jobs will disappear by October’s end
Immediate state and federal government action is required to avoid a “major skills shortage catastrophe”, according to the Victorian Automotive Chamber of Commerce’s (VACC) latest industry survey.
According to VACC, the compiled “an evidence-based response for Federal and State Governments, the predominant focus being business assistance package eligibility”. According to the modelling of the survey results, VACC estimates that around 7,523 full-time automotive retail employee roles will be lost from July 1, 2019 to October 31, 2021 unless further assistance is provided to the industry.
On the survey, VACC CEO Geoff Gwilym said:
“The wide-ranging VACC survey makes for depressing reading. Many business owners are reporting financial stress but sometimes they don’t fit the cookie-cutter government templates for COVID-19 business supports. This means many miss out on support that could see them surviving and employing local people.”
“VACC is communicating the survey results to both State and Federal governments in the pursuit of further support – whether through the easing of restrictions or consideration of fairer assistance measures,” said Mr Gwilym.
VACC says it is also lobbying state and federal governments to ease skilled migration limits as soon as possible, while seeking assurance that lockdowns will be a ‘mechanism of last resort’ in the future to restore business confidence and encourage fresh industry investment and employment.
Over 80 per cent of the survey respondents said they weren’t able to access, or did not apply for the Victorian State Government’s Small Business COVID Hardship Fund. This offered a $20,000 grant to small and medium Victorian businesses if they could demonstrate a 70 per cent turnover reduction over a two-week period (amongst certain other requirements). The fund closed to new applications on September 10.
According to VACC, survey respondents indicated that this level was simply too high a threshold to meet, with many stating they would need to cease trading at that turnover. Of further concern, 67.1 per cent said they’d experienced a greater than 40 per cent revenue drop since September 2020.
A tiered support package, similar to that offered in New South Wales, was highlighted as a possible way forward for struggling businesses seeking assistance.
The survey indicated 76.1 per cent of respondents were not able to negotiate successfully for commercial tenancy relief with their landlord, despite significant reductions in customer traffic thanks to restrictions.
Other key survey takeaways included:
- 92 per cent want to see a JobSaver or similar type payment introduced in Victoria;
- 43 per cent are not utilising the Federal Government’s Boosting Apprenticeships Commencements scheme;
- 64 per cent did not qualify or did not apply for the Victorian Government Business Costs Assistant Program;
- 27 per cent of full-time employed staff are currently receiving COVID-19 disaster payments from the Federal Government, because they worked between eight to 20 hours less per week; and
- 2 per cent of full-time employed staff are currently receiving COVID-19 disaster payments from the Federal Government, because they worked more than 20 hours less per week.
Weathering the Victorian COVID storm
carsales’ Executive Director – Dealer, Michael Holmes, says it’s vital that dealers focus heavily on inventory management… but it’s also essential to remain focused on the customer interaction.
“The current market and restrictions indicate consumers’ research phases will be longer, and therefore dealers need to nurture them through the journey. Make sure you provide a great customer experience from the moment a lead is received,” said Holmes.
Holmes also shared some practical tips to weather the Victorian (or any other) COVID-19 storm:
- Use data to help price your stock to market. It’s important to generate views and leads soon after publishing a vehicle, and this in turn will have a material impact on the ‘Days to Sale’ and ‘Stock Turn’
- Incorporate video functionality to create emotion. This goes beyond the stock advertisement and extends into contacting and following up customers.
- Constantly review your stock’s data and focus on poor performing advertised vehicles that require further exposure. On average, 40 per cent of dealer used cars in Victoria haven’t generated a lead in 90 days – who is responsible within your dealership to review stock performance daily?
- This is the ideal time to begin or continue dialogue with Active/Lost Leads, appraisals that didn’t convert, and current customers, with the view to generating sales opportunities and potentially used car stock.
- Respond in the same method as the consumer has enquired e.g. SMS response to SMS enquiry.
