![\"Cost](\"https:\/\/fleetimages.bobitstudios.com\/upload\/government-fleet\/content\/article\/2019\/0119\/getty-tools-__-720x422-a.jpg\")
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Cost and inventory are among the factors in deciding whether a fleet should own its tools or provide an allowance for technicians to\u00a0purchase their own. Photo: Getty Images<\/em><\/p>\n Gary Lentsch, CAFM, believes in the benefits of providing agency-\u00adowned tools to technicians rather than requiring technicians to supply their own tools. Although his organization supports both practices, Lentsch said providing tools increases its ability to recruit more technicians<\/a>.<\/p>\n Lentsch, who oversees the fleet operation for Eugene Water & Electric Board (EWEB) in Oregon, has seen some great mechanics, including some from the military, turned away because they did not own an adequate set of tools.<\/p>\n But Snohomish County Fleet Services in the State of Washington provides a tool allowance to help its technicians buy their own tools, and Director\/County Fleet Manager Roy Scalf believes that is a benefit toward recruitment. He has seen technicians invest $30,000 to $40,000 in tools and toolboxes, with some investing as much as $50,000 to $60,000.<\/p>\n \u201cIt\u2019s a huge investment,\u201d Scalf said. \u201cYou can see the logic in compensating them for the use of the tools, as well as keeping [the tools] up to date.\u201d<\/p>\n Recruitment is a main issue for government fleets considering whether to provide agency-owned tools for technicians to use or provide an allowance for them to buy their own tools. The cases of Lentsch and Scalf show that providing agency-owned tools and requiring mechanics to purchase their own tools can both be seen as positives in the area of recruitment. But the agency-owned vs. technician-owned debate involves additional positives on each side.<\/p>\n Lentsch has worked for public and private fleets in his career, and getting mechanics or technicians to provide an accurate inventory of what is in their toolboxes has always been a challenge.<\/p>\n \u201cHaving a complete inventory list is really a big deal if your shop would ever be broken into or is damaged by an event such as a fire,\u201d Lentsch said. The inventory list technicians provide, in Lentsch\u2019s opinion, is only good for the day the fleet manager receives it.<\/p>\n \u201cThat socket set that was there on Monday may not be there the following Monday, just because it\u2019s their tools and they have the right to use their tools for their own personal use,\u201d he said.<\/p>\n Having to pay technicians to produce the inventory list on agency time is a negative mark against technician-\u00adowned tools, said Lentsch, who added that his organization allows technicians to bring in their own tools if the techs provide a complete tool inventory list, although they must put together that initial list on their own time.<\/p>\n \u201cEverywhere I\u2019ve worked, getting that inventory list \u2014 an accurate list \u2014 has always been a struggle, and the time to do it has always been on our time. When it\u2019s done on our time, it takes away from productivity,\u201d Lentsch said. With agency-owned tools, he noted, inventory is streamlined because technicians\u2019 toolboxes are mostly the same, although the agency allows technicians some leeway to customize their toolboxes.<\/p>\n Scalf sees cost savings from providing an allowance instead of his agency investing $30,000 to $50,000 for each technician\u2019s tools. One reason for that is the technicians take better care of the tools when they own them. The tools get lost less frequently, because one person is responsible for them. When technicians own their own tools, they are more likely to keep them locked up when they are not at their workstation.<\/p>\n \u201cMy belief is that compensating them for those tools is probably still less expensive than if we were to continually keep up a supply of tools for technicians,\u201d Scalf said, noting that each technician at his organization receives a $60-per-month tool allowance. \u201cMaking that large investment every time a new employee comes on board is a lot different investment than what\u2019s negotiated in the contract as a tool allowance.\u201d<\/p>\n Craig Davis agrees with Scalf on the cost issue. Davis, who is transportation manager for Midwest City, Okla., said his agency pays $1,200 per year, or $46.15 per paycheck 26 times per year, as a tool allowance. \u201cAnd they\u2019re not required to do anything with that,\u201d he said. \u201cFor lack of a better term, it\u2019s kind of a pacifier. We thought it was a good thing to do.\u201d<\/p>\n The city would not be able to afford $40,000 or more for a tool set for each technician. \u201cThere\u2019s no way we\u2019re going to be able to do it here in a little city like we\u2019ve got,\u201d he said.<\/p>\n He added that although the city does not require technicians to use their tool allowance for tools, it encourages them to do so and also encourages them to purchase insurance for their tools, because the city does not insure employee property.<\/p>\n Tool trucks are an important part of the agency-owned vs. technician-owned tool debate. Scalf allows mechanics to visit tool trucks that arrive on-site at the shop during work hours, with tool truck personnel servicing the mechanics\u2019 existing tools or selling them new ones. How much time do the tool trucks take away from a shop\u2019s productivity?<\/p>\n \u201cNot very much,\u201d Scalf said, noting that tool trucks for companies such as Snap-On, Matco, and Mac stop by the shop once a week or every two weeks. Tool truck drivers spend about five to 10 minutes with each technician, or a bit longer if a tool purchase is involved. Most of the Snohomish County Fleet Services technicians are veteran mechanics with a full set of tools, so they don\u2019t typically spend much time at the tool trucks. \u201cIt\u2019s something that\u2019s easily managed in minimal time,\u201d Scalf said.<\/p>\n Lentsch, however, believes that minimal time adds up when you multiply it by several technicians using the tool trucks\u2019 services. Lentsch, who oversees a fleet of 370 vehicles and pieces of equipment, provided an example showing shop mechanics receiving a $600-per-year tool allowance, and their fully burdened labor rate is $100 per hour. Tool trucks stop by the shop about 50 times per year. If a mechanic spends five minutes per week, multiplied by the 50 stops per year, that is 4.1 hours per year of productivity time, per mechanic, taken from the shop floor<\/a>. If two to three tool trucks stop by the shop each week, that can mean eight to 12 hours a year, per mechanic. Then if your organization requires the mechanic to provide an inventory list, Lentsch estimates that could take up to 24 hours initially and four to six hours per year thereafter to maintain it. With the simple scenario of a couple of tool trucks stopping by each week and maintaining a tool inventory, the hard and soft dollar cost (per year) for having employee-\u00adprovided tools could actually be around $1,800 to $3,200 per mechanic.<\/p>\n But along with the cost of mechanic time involved with owning their own tools, recruitment is probably the top issue in the debate over whether government fleets should own their tools or require their technicians to own their own. John Vickery, director of fleet services for Anderson County Government in Tennessee, said his fleet organization\u2019s policy of owning its own tools has helped in the area of recruitment.<\/p>\n \u201cWe\u2019ve had several young techs fresh out of school who liked how we provided tools,\u201d Vickery said. \u201cThey could start work right away without having to try to buy tools. We\u2019ve had several move into management positions. They had that opportunity because they didn\u2019t have to buy tools.\u201d<\/p>\n Anderson County faces a recruiting challenge because of competition with neighboring repair shops and dealerships, so providing tools is a benefit in that area. Vickery has been there \u2014 he started as a vehicle technician and had to supply his own tools. That leads to another benefit of agency-owned tools: Less stress on the technician and fleet management.<\/p>\n \u201cI had a humongous tool truck bill,\u201d Vickery said, adding that paying off that debt was a challenge while he was trying to earn a living. Anderson County Government\u2019s policy eases stress on the technicians and Vickery. All of the technicians use the same tools on a standardized list, and the shop foreman performs a monthly check of the toolboxes. The county replaces tools that are worn due to normal wear and tear at no expense to the technician. Most of the time, the tools are under warranty. If obvious neglect is apparent or the technician loses a tool, that tech is responsible for replacing it.<\/p>\n But the agency-owned vs. tech-owned debate will continue. Davis of Midwest City believes the technician-\u00adowned option \u201cseems like a better deal.\u201d<\/p>\n \u201cEveryone gets to pick the brand they like,\u201d Davis said. \u201cNot everyone likes the same brand. Techs actually like it this way. They like the choice. We\u2019ve got Snap-On lovers, Matco lovers, and guys who won\u2019t have anything but Craftsman tools. They would lose that luxury if they were to get it all supplied for them.\u201d<\/p>\n For more benefits and drawbacks to providing agency-owned tools, read the story below.<\/p>\n by Daryl Lubinsky<\/p>\nProviding Technician Tools vs. Offering a Tool Allowance<\/h3>\n
Agency-Owned Benefit:\u00a0Tracking Inventory<\/h4>\n
Tech-Owned Benefit:\u00a0Cost Savings<\/h4>\n
Tool Trucks: Possible\u00a0Negative for Tech-Owned<\/h4>\n
Recruitment a Top Consideration<\/h4>\n
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I\u00b4m\u00a0a Fleet Management expert, and the manager of\u00a0![\"\"](\"http:\/\/en.advancedfleetmanagementconsulting.com\/wp-content\/uploads\/2019\/02\/Cartel-Valencia-2019-1.jpg\")
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