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 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 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 go 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 value added benefits such as the loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in a feat to keep lets start work on 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 comparable to independent repair shop prices.
But it’s and not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers have been competed for skilled labor and now have become a lot aggressive. With fewer folks entering business repair profession and opting instead for careers regarding example health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to work with and retain these competent employees. As an automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician may well make $100,000 a whole year with benefits while an unbiased shop owner would must gross within the $1,000,000 1 yr to make that as well as have to pay for their own benefits and social safe practices.
Because in the economic realities many independent owners have started closing their shops all night to be employed by GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, each time a diagnosis appeared and a fraction needs replacing the dealer will have it in stock, not only verifying the verification but greatly speeding in the repair period and increasing customer care. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and you’ll 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 data is proprietary individuals independents claim the information should build up to anyone who owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777