Great Car Wash/Minimum Wage Article.

[wood]

This article attached below addresses the minimum wage issue. It uses car washes at front and center of the debate. Better yet, it gives a very accurate portrayal of the car wash industry over the years. Finally, a writer actually did his homework on our industry.
Enjoy

Wood

http://reason.com/r/14LI

 

[rph9168]

Decent article but it is hard to believe that one could write an article on the history of car washing without mentioning Dan Hanna and leaving out pioneers in the industry like Jack Flappan, Red Lewis, Sonny Fazio, Harry Matthews and a few others. He completely ignores the history of automatics and self serves. While it is a decent article there is much more to the story to be told and research to be done.

 

[Earl Weiss]

Decent article but it is hard to believe that one could write an article on the history of car washing without mentioning Dan Hanna and leaving out pioneers in the industry like Jack Flappan, Red Lewis, Sonny Fazio, Harry Matthews and a few others. He completely ignores the history of automatics and self serves. While it is a decent article there is much more to the story to be told and research to be done.

I think the thrust of the article vis a vis the car wash industry being a microcosm of the economy as a whole reducing labor due to cost and headaches, coupled with typical space restrictions did a fine job. I don't think it was meant as acomprehensive history of car wash automation.

 

[rph9168]

As I said, it was a decent article but it seemed to stretch the points about the development of equipment as labor saving devices rather than a progression and development of equipment as more a matter of efficiency to handle more and more volume. In today's world with the rising cost of labor I would agree economics plays a more significant role but historically operators were more concerned about washing more cars than saving labor. The men I mentioned were at the forefront of equipment development. Some of those mentioned in the article were not as responsible for the progression as there men were. I would have to guess that he relied on several individuals he contacted and did not do any really comprehensive research about the effect of the economy on the development of equipment. That said it was still a decent article - as good as I have read about our industry in quite a while.

 

[wood]

Earl highlighted my point. Yes, it wasn't an in depth history of the industry. More of an accurate short background of conveyorized tunnels, the labor issue and how manufacturer's & operators had, have and will continue to modify. Whether because of great strides by manufacturer's, labor supply, or in this case steering down a $15 minimum wage, car washes will continue to adjust.

We have a lot of good writers within the industry, it was just noticeable to me how an outsider did his homework. The typical AOL. Yahoo, etc... pieces are normally off base.

Wood

 

[splashngocornwall]

I'm a subscriber of Reason magazine ( I'm one of those crazy libertarian wackos) and smiled when I saw that article.

 

[washnvac]

To me, article summarizes what will happen across all industries. They will all be forced into more and more automation.

You will place your order at Burger King on your smart phone. Pay with apple pay or paypal, and pick your order up at some automated drawer or conveyor type unit.

 

[Earl Weiss]

City of Chgo has a minimum wage for anyone with a City Contract. $13.00 going to $13.50, $3.00 higher than regular city minimum. Car Washes with city Contracts had to re bid the contracts last spring. The City determined that the car washes only had to pay the $13.00 while employees worked on City business. Had the contract for decades . Decided not to bid. They could not tell us how we would deterine what time was allocated to city vehicles. Unlike most businesses we deal with the General public and city business is interspersed. I think one operator said that with the minimum wage requirement the City wouldn't have to pay $27.00 for a passenger vehicle wash as opposed to the $7.00 (Yes $7.00 you read that right) they were paying.

Last I heard the City rejected all bids. But the City kept sending in vehicles for washing and operators were instructed to invoice the City to get paid which is what is happening. So, no contract means the $13.00 wage requirement does not apply. (Nor do the MBE / WBE set asides)

 

[robert roman]

This is really more about future than past.

Car washing may never be the same in NYC or NY.

Like article alludes to, some if not a great many washes in NYC and NY are business-only.

Landlord doesn’t care about minimum wage increase, pay the rent or landlord builds-to-suit or sells property to highest and best use.

How best to minimize rising labor cost in labor intensive activity like full-serve? Substitute capital for labor (i.e. express, flex). Or it’s probably goodbye carwash.

Look at fast food drive-through. Dollar menus, two for five, etc. is tough to make a good buck today unless store is very high volume.

So, QSR industry is spending tons on R&D to automate processes.