If you see fewer auto repair shops in your area 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 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 one 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 along the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep lets start work on 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 to be able to independent repair shop prices.
But it’s simply competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have always competed for skilled labor and already have become significantly more aggressive. With fewer young people entering effect on repair profession and opting instead for careers with regard to health and technology, essential talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to work with and retain these highly skilled employees. Being an automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 twelve months with benefits while an independent shop owner would must gross within a $1,000,000 one year to make that as well as have to pay for their own benefits and social safe practices.
Because of these economic realities many independent owners have started closing their shops and going to enhance 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 health issues.
Additionally, if a diagnosis is intended and a part of needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding increase the repair period and increasing customer care. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee showdown. 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 applications.
The manufacturers claim their technical results are proprietary in terms of independents claim the information should be for sale to anyone that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777