If you see fewer auto repair shops in your community 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 also 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 the latest 100,000 mile warranty which means that the independent will get little chance to operate that car for site to website 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in trying 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 to be able to independent repair shop prices.
But it’s not just competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers constantly competed for skilled labor and now have become significantly aggressive. With fewer young people entering automobile repair profession and opting instead for careers regarding example health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to hire and retain these highly skilled employees. Regarding automotive technician, would you rather are employed by Audi or Joe’s Drive way?
The dealers are selecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ A premier end dealer technician may well $100,000 twelve months with benefits while an independent shop owner would ought to gross over a $1,000,000 one year to make that as well as have to reimburse their own benefits and social basic safety.
Because of these economic realities many independent owners are now closing their shops on and on to be employed by 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 rrssues.
Additionally, any time a diagnosis is intended and a fraction needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding increase the repair and also increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee showdown. Techs cannot fix cars without information and love a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical details are proprietary while 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