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 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 at least one 100,000 mile warranty so that you can 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep up 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 to be able 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 will have become significantly aggressive. With fewer individuals entering significantly repair profession and opting instead for careers regarding example health and technology, essential 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 appeal to Audi or Joe’s Shed?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ An increased end dealer technician may well make $100,000 one year with benefits while wages shop owner would must gross within a $1,000,000 every year to make that and have to obtain their own benefits and social equity.
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 repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, in the event the diagnosis appeared and a portion needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding up the repair and also increasing customer support. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and you will 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 information is proprietary while independents claim the information should build up to anybody that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777