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 may 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 kind 100,000 mile warranty so that you can the independent will get little chance to work with 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 in order to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such as a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep on top of the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s and not just competitive pricing naturally worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers often competed for skilled labor and may have become a lot aggressive. With fewer conserve entering the auto repair profession and opting instead for careers like health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents you ought to hire and retain these competent employees. The automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as may well known today, ‘technicians.’ An excellent end dealer technician may well $100,000 one year with benefits while an independent shop owner would require gross over a $1,000,000 a year to make that as well as have to reimburse their own benefits and social equity.
Because the hands down economic realities many independent owners have started closing their shops all night to work for 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 crises.
Additionally, in the event the diagnosis is made and a part needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding within the repair as well as increasing service delivery. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical data is proprietary while the independents claim the information should build up to anyone who owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777