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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem may 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 getting 100,000 mile warranty so that you can the independent will get little chance to handle 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 inside the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such to be a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in an effort to keep lets start work on 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 comparable to independent repair shop prices.
But it’s simply competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers often competed for skilled labor and now have become a lot aggressive. With fewer individuals entering business repair profession and opting instead for careers like health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to rent and retain these highly skilled employees. A great automotive technician, would you rather improve Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as they may be known today, ‘technicians.’ Top-notch end dealer technician may well $100,000 a year with benefits while an independent shop owner would must gross a lot more $1,000,000 every year to make that and have to pay for their own benefits and social basic safety.
Because the hands down economic realities many independent owners are at this moment closing their shops on and on to work for GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, each time a diagnosis is comprised and a fraction needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding in the repair period and increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical results are proprietary while independents claim the information should be around to anyone that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777