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 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 at least one 100,000 mile warranty relating to this the independent will get little chance to handle that car for their early 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 happen to adding other useful 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 feat to keep plan the dealers since customers now expect this service.
Furthermore dealers with regard to 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 naturally worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers constantly competed for skilled labor and already have got become significantly more aggressive. With fewer right now entering the auto repair profession and opting instead for careers such as health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to work with and retain these competent employees. A great automotive technician, would you rather work for Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician may well $100,000 yearly with benefits while wages shop owner would require gross a lot more $1,000,000 one year to make that and still have to afford their own benefits and social basic safety.
Because the hands down 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 distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, any time a diagnosis is comprised and a portion needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding inside the repair along with increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical data is proprietary in terms of independents claim the information should be available to anybody that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777