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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem may 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 getting 100,000 mile warranty meaning that the independent will get little chance to work on 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 up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as the loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in hard work to keep with 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 comparable to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers have been competed for skilled labor and already have become a lot aggressive. With fewer conserve entering significantly repair profession and opting instead for careers with regard to health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to utilize and retain these highly skilled employees. A great automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician actually make $100,000 one year with benefits while a self-employed shop owner would ought to gross a lot more $1,000,000 1 yr to make that and get to reimburse their own benefits and social security.
Because the hands down economic realities many independent owners are now closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, in the event the diagnosis created from and an area needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding inside the repair as well as increasing customer care. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical information is proprietary in terms of independents claim the information should be available to anyone who owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777