If you see fewer auto repair shops near 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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem could be 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 at least one 100,000 mile warranty relating to this the independent will get little chance to improve 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 in order to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in an effort to keep up with 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 comparable to independent repair shop prices.
But it’s simply competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers often competed for skilled labor and already have become even more aggressive. With fewer young people entering the auto repair profession and opting instead for careers with regard to health and technology, overall talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to rent and retain these highly skilled employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 a whole year with benefits while wages shop owner would have to gross during a $1,000,000 twelve months to make that and still have to reimburse their own benefits and social security.
Because in the economic realities many independent owners are at this moment closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, if a diagnosis appeared and a part needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding in the repair and also 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’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical results are proprietary everybody is making independents claim the information should build up to anybody that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777