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 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 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 which means that the independent will get little chance to improve that car for one 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 inside the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep with the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers generally competed for skilled labor and now have become a great deal more aggressive. With fewer right now entering significantly repair profession and opting instead for careers regarding example health and technology, overall talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to hire and retain these competent employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician may well $100,000 yearly with benefits while a private shop owner would must gross within a $1,000,000 every year to make that and get to reimburse their own benefits and social basic safety.
Because in the 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 repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, any time a diagnosis is made and a portion needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding up the repair time and increasing client satisfaction. Big advantage Cadillac and Bmw.
But it is not just a skilled employee conflict. Techs cannot fix cars without information and there’s a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical details are proprietary in terms of independents claim the information should accumulate to anyone that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777