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 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 some sort of 100,000 mile warranty so that you can 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 in order to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying 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 to be able to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers often competed for skilled labor and already have become even more aggressive. With fewer right now entering effect on repair profession and opting instead for careers like health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to hire and retain these highly skilled employees. The automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician may well make $100,000 yearly with benefits while an independent shop owner would ought to gross over a $1,000,000 twelve months to make that as well as have to afford their own benefits and social security.
Because from the economic realities many independent owners are currently closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, if a diagnosis is made and an area needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding in the repair and also increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical details are proprietary everybody is making independents claim the information should accumulate to anyone that owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777