If you see fewer auto repair shops near 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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 relating to this the independent will get little chance to work on that car for their early 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 in 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 now being forced to give courtesy rides to customers in a feat to keep with the dealers since customers now expect this service.
Furthermore dealers for 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 naturally worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers have always competed for skilled labor and may have become a lot aggressive. With fewer individuals entering effect on repair profession and opting instead for careers such as health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to rent and retain these highly skilled employees. Being an automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ A top end dealer technician earns $100,000 one year with benefits while an independent shop owner would require gross a lot more $1,000,000 twelve months to make that as well as have to purchase their own benefits and social equity.
Because of these economic realities many independent owners are at this moment closing their shops and going to work for 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 crises.
Additionally, each time a diagnosis is comprised and an area needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding in the repair period and increasing service delivery. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee showdown. Techs cannot fix cars without information and you will find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical facts are proprietary individuals 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