If you see fewer auto repair shops near 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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem is 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 the latest 100,000 mile warranty which means that 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 in order to adding other useful benefits such as being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep plan the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s simply competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers have been competed for skilled labor and will have become significantly more aggressive. With fewer right now entering significantly repair profession and opting instead for careers such as health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to hire and retain these competent employees. A great automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ A top end dealer technician may well make $100,000 a whole year with benefits while an unbiased shop owner would to be able to gross during a $1,000,000 1 yr to make that and have absolutely to afford their own benefits and social protective measures.
Because of this economic realities many independent owners are at this moment closing their shops all night 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, any time a diagnosis is made and an area needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding up the repair and also increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst 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 build up 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