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 is 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 at least one 100,000 mile warranty relating to this the independent will get little chance to operate 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 in order to their service departments to make in 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 usually now being forced to give courtesy rides to customers in a feat to keep with the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s and not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers often competed for skilled labor and will have become significantly more aggressive. With fewer individuals entering business repair profession and opting instead for careers like health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to rent and retain these competent employees. As an automotive technician, would you rather appeal to Audi or Joe’s Rummage?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 one year with benefits while an unbiased shop owner would ought to gross during a $1,000,000 1 yr to make that as well as have to reimburse their own benefits and social protective measures.
Because in the economic realities many independent owners are usually closing their shops and going to work with 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 problems.
Additionally, any time a diagnosis appeared and a fraction needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding within the repair along with increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee conflict. Techs cannot fix cars without information and you will 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 results are proprietary in terms of independents claim the information should build up to anyone who owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777