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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 some sort of 100,000 mile warranty which means that the independent will get little chance to handle that car for the first 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in trying to keep plan 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 similar to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers have been competed for skilled labor and may have become even more aggressive. With fewer conserve entering significantly repair profession and opting instead for careers such as health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to hire and retain these highly skilled employees. Regarding automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician can make $100,000 a year with benefits while a private shop owner would ought to gross over a $1,000,000 1 yr to make that as well as have to afford their own benefits and social basic safety.
Because of these economic realities many independent owners are now closing their shops all night 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, if a diagnosis created from and a portion needs replacing the dealer will have it in stock, not only verifying the verification but greatly speeding within the repair along with increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But the goal wasn’t 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 techniques.
The manufacturers claim their technical facts are proprietary everybody is making independents claim the information should be around to anyone that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777