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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will 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 getting 100,000 mile warranty which means that the independent will get little chance to improve that car for site to website 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep on top of the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s as well as competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers have always competed for skilled labor and now have become even more aggressive. With fewer individuals entering the auto repair profession and opting instead for careers with regard to health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to utilize and retain these highly skilled employees. A great automotive technician, would you rather improve Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ A premier end dealer technician may well make $100,000 one year with benefits while wages shop owner would have to gross within a $1,000,000 a year to make that as well as have to reimburse their own benefits and social equity.
Because of this 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 repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, if a diagnosis appeared and a portion needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding up the repair along with increasing customer support. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee struggle. 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 equipment.
The manufacturers claim that the technical details are proprietary everybody is making independents claim the information should build up to anybody that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777