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 and 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 ten or fifteen 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 so that you can the independent will get little chance to operate that car for their early 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 in order to adding other useful benefits such to be a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in an effort to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s simply competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have always competed for skilled labor and now have become even more aggressive. With fewer young people entering business repair profession and opting instead for careers like health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to hire and retain these highly skilled employees. As an automotive technician, would you rather appeal to Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician may well make $100,000 twelve months with benefits while an unbiased shop owner would to be able to gross over a $1,000,000 every year to make that and have absolutely to pay for their own benefits and social security.
Because of this economic realities many independent owners have started closing their shops and going to be suitable for 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 rrssues.
Additionally, if a diagnosis created from and a fraction needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding up the repair time and increasing customer care. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical details are proprietary everybody is making independents claim the information should be around to anybody that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777