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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will be the auto repair and service market has been shrinking in the last ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer at least one 100,000 mile warranty meaning that the independent will get little chance to improve that car for their early 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in a shot 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 to be able to independent repair shop prices.
But it’s and not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have always competed for skilled labor and already have become significantly more aggressive. With fewer right now entering business repair profession and opting instead for careers like health and technology, overall talent pool of methods to use skilled auto technicians is shrinking.
Increasingly appeared becoming more difficult for independents you ought to hire and retain these highly skilled employees. As an automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ A top end dealer technician earns $100,000 yearly with benefits while an unbiased shop owner would ought to gross within the $1,000,000 1 yr to make that and have absolutely to obtain their own benefits and social protective measures.
Because of these economic realities many independent owners are usually closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis is made and a part needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding within the repair as well as increasing customer care. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee conflict. 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 that the technical details are proprietary in terms of independents claim the information should accumulate to anyone who owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777