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 getting 100,000 mile warranty meaning that the independent will get little chance to operate that car for one 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking 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 a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep up 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 to be able to independent repair shop prices.
But it’s simply competitive pricing that is worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers generally competed for skilled labor and will have become significantly more aggressive. With fewer individuals entering significantly repair profession and opting instead for careers with regard to health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to hire and retain these highly skilled employees. As an automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician may well $100,000 one year with benefits while a private shop owner would have to gross within a $1,000,000 one year to make that and have absolutely to obtain their own benefits and social basic safety.
Because of these economic realities many independent owners have started closing their shops all night to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, any time a diagnosis appeared and an area needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding increase the repair time and increasing customer care. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee conflict. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical results are proprietary in terms of independents claim the information should build up to anyone that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777