If you see fewer auto repair shops in your town then you are witnessing a trend that is spreading throughout the auto repair industry. The small independent auto repair shop is getting squeezed by both the dealers as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will be the auto repair and service market has been shrinking in the last 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer kind 100,000 mile warranty which means that the independent will get little chance to handle that car for the most important 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in an effort to keep plan the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers have always competed for skilled labor and now have become a lot aggressive. With fewer young people entering effect on repair profession and opting instead for careers with regard to health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents you ought to hire and retain these highly skilled employees. As an automotive technician, would you rather are employed by Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician may well $100,000 yearly with benefits while wages shop owner would require gross over a $1,000,000 one year to make that and still have to afford their own benefits and social equity.
Because in the economic realities many independent owners are at this moment closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, each time a diagnosis is intended and an area needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding up the repair period and increasing client satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical facts are proprietary while independents claim the information should accumulate to anybody that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777