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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 meaning that the independent will get little chance to work on that car for one 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 along the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as the loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in an effort to keep up 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 comparable to independent repair shop prices.
But it’s as well as competitive pricing naturally worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers have always 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 like health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to rent and retain these highly skilled employees. As an automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician actually make $100,000 twelve months with benefits while an unbiased shop owner would ought to gross a lot more $1,000,000 every year to make that and still have to afford their own benefits and social security.
Because in the economic realities many independent owners are usually closing their shops and going to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, if a diagnosis appeared and a fraction needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding up the repair as well as increasing customer care. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical details are proprietary while the independents claim the information should build up to anyone who owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777