If you see fewer auto repair shops in your community 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 could 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 kind 100,000 mile warranty particular person yourself the independent will get little chance to work with 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in hard work 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 for you to independent repair shop prices.
But it’s as well as competitive pricing that is worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have always competed for skilled labor and may have become significantly more aggressive. With fewer folks entering effect on repair profession and opting instead for careers such as health and technology, essential talent pool of the top skilled auto technicians is shrinking.
Increasingly it is 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 Drive way?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician may well make $100,000 a year with benefits while an unbiased shop owner would must gross over a $1,000,000 a year to make that as well as have to obtain their own benefits and social basic safety.
Because the hands down economic realities many independent owners are at this moment closing their shops and going to enhance 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 injuries.
Additionally, in the event the diagnosis is comprised and a part needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding within the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not only 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 solutions.
The manufacturers claim that the technical facts are proprietary in terms of independents claim the information should be available to anybody that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777