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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem could 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 some sort of 100,000 mile warranty meaning that the independent will get little chance to improve 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 seeking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a shot to keep lets start work on 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 for you to independent repair shop prices.
But it’s and not just competitive pricing that is worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers have always competed for skilled labor and may have become even more aggressive. With fewer right now entering effect on repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to utilize and retain these highly skilled employees. The automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ An excellent end dealer technician may well $100,000 a whole year with benefits while wages shop owner would require gross within a $1,000,000 every year to make that and have absolutely to pay for their own benefits and social safe practices.
Because from the economic realities many independent owners have started closing their shops all night to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, if a diagnosis created from and a fraction needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding increase the repair and also increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and you will find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical results are proprietary while independents claim the information should build up to anybody that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777