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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 some sort of 100,000 mile warranty meaning that 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 looking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in hard work to keep on top of 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 in order to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers have always competed for skilled labor and already have got become a lot aggressive. With fewer folks entering significantly repair profession and opting instead for careers like health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to work with and retain these competent employees. Regarding automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician may well make $100,000 a whole year with benefits while wages shop owner would ought to gross within the $1,000,000 every year to make that and have absolutely to reimburse their own benefits and social safe practices.
Because in the economic realities many independent owners are now closing their shops and going to be employed by 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 problems.
Additionally, in the event the diagnosis appeared and an area needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding up the repair time and increasing client satisfaction. Big advantage Cadillac and Bmw.
But it is not just a skilled employee world war. 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 data is proprietary individuals independents claim the information should be available to anyone that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777