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 business.
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 the latest 100,000 mile warranty so that you can the independent will get little chance to handle 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 looking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such to be a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a shot to keep with the dealers since customers now expect this service.
Furthermore dealers regarding example 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 is actually worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers have always competed for skilled labor and now have become significantly aggressive. With fewer young people entering effect on repair profession and opting instead for careers regarding example health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents you ought to hire and retain these competent employees. The automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as may well known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 yearly with benefits while wages shop owner would have to gross a lot more $1,000,000 a year to make that and have absolutely to purchase their own benefits and social equity.
Because of this economic realities many independent owners have started closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, any time a diagnosis created from and a fraction needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding in the repair and also increasing customer care. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and love a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical results are proprietary everybody is making independents claim the information should be available to anybody that owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777