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 as well as 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 at least one 100,000 mile warranty so that you can the independent will get little chance to improve 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 looking to their service departments to make along 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 increasingly being forced to give courtesy rides to customers in trying to keep up with the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s and not just competitive pricing that is worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers generally competed for skilled labor and now have become significantly more aggressive. With fewer right now entering automobile repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to rent and retain these competent employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 a year with benefits while a private shop owner would have to gross during a $1,000,000 a year to make that and still have to obtain their own benefits and social safe practices.
Because of these economic realities many independent owners are usually closing their shops all night 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, is not diagnosis is comprised and a part needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding within the repair time and increasing service delivery. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee showdown. Techs cannot fix cars without information and you will find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical results are proprietary individuals independents claim the information should be around to anybody that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777