If you see fewer auto repair shops in your community 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 may 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 the latest 100,000 mile warranty so that you can the independent will get little chance to work with that car for site to website 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 in order to adding other value added benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep up with the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices similar 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 through dealers: the dealers often competed for skilled labor and now have become significantly aggressive. With fewer conserve entering the auto repair profession and opting instead for careers like health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to utilize and retain these competent employees. The automotive technician, would you rather are employed by Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 a whole year with benefits while an unbiased shop owner would must gross during a $1,000,000 a year to make that and get to obtain their own benefits and social security.
Because the hands down economic realities many independent owners are at this moment closing their shops and going to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, in the event the diagnosis created from and a portion needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding in the repair as well as increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee world war. Techs cannot fix cars without information and love a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical results are proprietary in terms of independents claim the information should be for sale to anyone that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777