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 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 relating to this the independent will get little chance to work on 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 in order to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying 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 similar 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 through dealers: the dealers generally competed for skilled labor and now have become significantly aggressive. With fewer right now entering significantly repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to utilize and retain these competent employees. A great automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 a whole year with benefits while an unbiased shop owner would ought to gross during a $1,000,000 every year to make that and still have to obtain their own benefits and social security.
Because of this economic realities many independent owners are at this moment closing their shops and going to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic shop 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 portion needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding in the repair time and increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical results are proprietary everybody is making independents claim the information should be for sale to anyone who owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777