If you see fewer auto repair shops towards you 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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem could 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 getting 100,000 mile warranty relating to this the independent will get little chance to operate that car for one 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in an effort to keep up with the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s as well as competitive pricing that is worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers often competed for skilled labor and already have become significantly aggressive. With fewer young people entering effect on repair profession and opting instead for careers regarding example health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to work with and retain these highly skilled employees. As an automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 a year with benefits while an unbiased shop owner would must gross during a $1,000,000 every year to make that and still have to reimburse their own benefits and social safe practices.
Because of this economic realities many independent owners have started closing their shops all night to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, in the event the diagnosis created from and a fraction needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding up the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical facts are proprietary individuals independents claim the information should be around to anyone who owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777