If you see fewer auto repair shops in your area 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 along with 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer kind 100,000 mile warranty which means that the independent will get little chance to improve that car for one 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 along the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such to be a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in hard work to keep 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 to be able 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 by the dealers: the dealers have always competed for skilled labor and already have got become significantly more aggressive. With fewer folks entering significantly 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 around the globe becoming more difficult for independents to rent and retain these highly skilled employees. A great automotive technician, would you rather improve Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician can make $100,000 a year with benefits while an independent shop owner would require gross during a $1,000,000 one year to make that and have to purchase their own benefits and social basic safety.
Because from the economic realities many independent owners have started closing their shops and going to work with GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis appeared and a portion needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding in the repair along with increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical information is proprietary while the independents claim the information should be around to anyone who owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536