If you see fewer auto repair shops towards 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 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 operate that car for their early 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 in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such 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 plan 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 comparable to independent repair shop prices.
But it’s but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers often competed for skilled labor and now have become a great deal more aggressive. With fewer young people entering effect on repair profession and opting instead for careers such as health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to hire and retain these highly skilled employees. As an automotive technician, would you rather work in Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as may well known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 one year with benefits while wages shop owner would to be able to gross within a $1,000,000 1 yr to make that as well as have to afford their own benefits and social equity.
Because the hands down economic realities many independent owners are currently closing their shops on and on to be suitable for 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, if a diagnosis is intended and a fraction needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding increase the repair as well as increasing service delivery. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical data is proprietary while independents claim the information should be available to anybody that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777