Pub. 59 2018-2019 Issue 4

40 backgrounds allow the agency to function in an innovative and affective manner. Is the agency fulfilling its mission to the public? To the regulated community? The agency is divided into six different departments that serve the motoring public: Vehicle Titles & Registration, Motor Vehicle, Motor Carrier, Enforcement, ABTPA and Consumer Relations. In addition, the agency has in place other departments that provide critical support to these functions. Each of these departments provide critical and unique services to the public and industry. Overall, I would say that the agency does a very good job of providing services to motoring public and the automotive industry. I would also add that the expertise and first-hand industry knowledge that is provided by the members of the Texas DMV Board is indispensable for providing guidance to the agency in dealing with the complex matters that come before the agency. What are the agency’s future challenges? As of this writing it appears that the Texas legislature will approve the transfer of the driver’s license function from the Texas Department of Public Safety to the DMV. This is something that I believe is in the best interest of our state. Texas is only one of nine states that do not have the driver’s license function as part of the DMV. The transfer makes sense, but this transfer will be complex and monumental. If the transfer occurs, the DMVwill be tasked with integrating a department that is much larger than the entire existing DMV. The agency will need to be very methodical, strategic and diligent in determining what resources, processes and technologies will be leveraged to complete the transfer. In the end, the expectation is for the DMV not just to transfer the driver’s license function, but to significantly enhance the operation in order to bring a high level of efficiency and service to the public. As an owner of dealerships in two states, how do the two states compare with respect to the industry and to the public? In general, Texas has a reputation for providing a business environment that is more conducive to conducting business. The legal environment, regulatory guidelines and the absence of a state income tax contribute to making Texas a business friendly environment. Also, as it pertains to the auto industry, the New Mexico DMV does not have a Board of Directors to help it set policy, provide oversight and accountability, so it is unlike the Texas DMV. The benefit of having board professionals working with agency professionals at the Texas DMV lends itself to greater transparency, stakeholder input and operational effectiveness. Do you find it more difficult for a business to conduct business today than when you first became a dealer? If yes, what should be done tomake the process less complicated? The business environment has certainly changed since I came into it in the late 90s. We are seeing that recruitment of personnel throughout the dealership has become somewhat more challenging. As margins on new vehicles are reduced, the earnings that the average salesperson can make are also reduced. This trend, coupled with the unwillingness many of our applicants to work the hours that have been traditional in a retail workplace, have made our recruitment process more challenging. And of course, just like the rest of the country, the recruitment of service and collision center technicians continues to be a struggle. The current low level of unemployment and the pull of labor to the Permian Basin in our area, exacerbates the problem. Fortunately, we have found some solutions to lessen the impact of the issue. Much like most other dealerships, our sales processes have evolved to conform to the manner in which consumers interact with businesses, and we have adopted sales processes that maximize the eff iciency of our sales team. The implementation of our Business Development Center, the use of social media, online advertising and electronic lead gathering utilities have all served to enhance our sales process and the productivity of our sales force. I do believe more can be done towards making the compensation levels more attractive for people considering a career in automotive sales. This is an area where dialogue and cooperation between manufacturers and dealers would be very beneficial. While the shortage of technicians continues to be a problem, we have not been overly affected by the issue. We have to do our best to retain our employees by providing a work environment that is positive and upbeat while ensuring that they can provide a good quality of life for their families. Our industry, like others, is in a constant state of evolution. Customers’ buying habits are changing. What they want and how they buy things are not the same as they were even five years ago. There is no doubt that customer buying habits have changed. What they buy and how they buy have changed. The changes have been more drastic in how customers buy. The retail business is in the midst of a major state of evolution. I recently read that nearly 7,000 retail outlets were slated to close in 2019. This is on top of nearly 6,000 that closed last year. Online purchasing has had a major impact on consumers buying habits. While buying a vehicle is not the same as purchasing clothing, auto consumers  RAYMOND PALACIOS — CONTINUED FROM PAGE 36