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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 getting 100,000 mile warranty meaning that the independent will get little chance to handle that car for one 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as being a loaner car while repairs are being made. Independents are now being 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 in order to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers constantly competed for skilled labor and already have got become significantly aggressive. With fewer individuals entering business repair profession and opting instead for careers with regard to health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to hire and retain these competent employees. The automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician may well $100,000 twelve months with benefits while an unbiased shop owner would to be able to gross a lot more $1,000,000 a year to make that and have to afford their own benefits and social basic safety.
Because of this economic realities many independent owners are currently closing their shops on and on to work for GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, if a diagnosis is intended and a portion needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding within the repair time and increasing customer care. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee war. 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 equipment.
The manufacturers claim that the technical data is proprietary everybody is making independents claim the information should accumulate to anyone that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777