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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 meaning that the independent will get little chance to operate that car for one 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking 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 the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying to keep plan 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 in order to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers often competed for skilled labor and may have become significantly aggressive. With fewer folks entering business repair profession and opting instead for careers such as health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to utilize and retain these competent employees. As an automotive technician, would you rather are employed by Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician earns $100,000 a whole year with benefits while wages shop owner would must gross over a $1,000,000 every year to make that and still have to afford their own benefits and social safe practices.
Because in the economic realities many independent owners are at this moment closing their shops on and on to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, is not diagnosis is comprised and a portion needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding up the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee showdown. Techs cannot fix cars without information and love a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical details are proprietary while independents claim the information should be available to anybody that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777