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 and 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 some sort of 100,000 mile warranty relating to this the independent will get little chance to work on that car for site to website 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 happen to adding other useful benefits such being a loaner car while repairs are being made. Independents are usually 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 for Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers often competed for skilled labor and may have become a great deal more aggressive. With fewer young people entering automobile repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to work with and retain these highly skilled employees. As an automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician earns $100,000 a whole year with benefits while wages shop owner would have to gross within a $1,000,000 1 yr to make that as well as have to obtain their own benefits and social protective measures.
Because in the economic realities many independent owners are now closing their shops on and on to be employed by 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 created from and a part of needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding increase the repair and also increasing service delivery. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical results are proprietary while independents claim the information should accumulate 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