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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem is 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 the latest 100,000 mile warranty particular person yourself the independent will get little chance to work on 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 along the difference.
Additionally many dealers such as Porsche and Saab have been 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 a feat to keep with 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 to be able to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers generally competed for skilled labor and already have become significantly more aggressive. With fewer right now entering business repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to rent and retain these competent employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as they may be known today, ‘technicians.’ An increased end dealer technician earns $100,000 twelve months with benefits while an independent shop owner would to be able to gross a lot more $1,000,000 every year to make that as well as have to purchase their own benefits and social protective measures.
Because of this economic realities many independent owners have started 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 health issues.
Additionally, any time a diagnosis is made and a portion needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding increase the repair and also increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and you will find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical information is proprietary individuals independents claim the information should be around to anyone who owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777