If you see fewer auto repair shops in your town 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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 kind 100,000 mile warranty relating to this the independent will get little chance to operate that car for site to website 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 happen to adding other useful benefits such as the loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat 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 similar to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers have been competed for skilled labor and already have become significantly aggressive. With fewer folks entering significantly repair profession and opting instead for careers such as health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents you ought to hire and retain these competent employees. The automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician may well $100,000 twelve months with benefits while an independent shop owner would require gross over a $1,000,000 twelve months to make that and still have to reimburse their own benefits and social equity.
Because in the economic realities many independent owners have started closing their shops on and on to work with 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 rrssues.
Additionally, any time a diagnosis created from and a fraction needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding increase the repair as well as increasing customer support. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee showdown. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical information is proprietary everybody is making independents claim the information should be available to anybody that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777