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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer the latest 100,000 mile warranty meaning that the independent will get little chance to handle that car for the most important 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 up the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in an effort to keep plan 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 similar to independent repair shop prices.
But it’s and not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers constantly competed for skilled labor and already have got become even more aggressive. With fewer folks entering effect on repair profession and opting instead for careers such as health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents you ought to hire and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as may well known today, ‘technicians.’ A top end dealer technician can make $100,000 one year with benefits while a private shop owner would ought to gross during a $1,000,000 a year to make that and still have to afford their own benefits and social safe practices.
Because of these economic realities many independent owners have started closing their shops on and on to be employed by 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 is comprised and an area needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding inside the repair as well as increasing service delivery. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee conflict. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical results are proprietary while the independents claim the information should be available to anyone that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777