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 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 so that you can the independent will get little chance to handle that car for one 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 in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as the loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep plan 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 but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers often competed for skilled labor and already have got become a lot aggressive. With fewer individuals entering business repair profession and opting instead for careers such as health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to rent and retain these highly skilled employees. The automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician earns $100,000 one year with benefits while an unbiased shop owner would require gross within the $1,000,000 a year to make that and get to afford their own benefits and social security.
Because of these economic realities many independent owners are currently closing their shops on and on to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis is comprised and a fraction needs replacing the dealer will have it in stock, not only verifying the verification but greatly speeding inside the repair period and increasing service delivery. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical data is proprietary individuals independents claim the information should be available to anyone who owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777