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 may be the auto repair and service market has been shrinking in the last 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer at least one 100,000 mile warranty which means that the independent will get little chance to operate 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 looking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep plan the dealers since customers now expect this service.
Furthermore dealers with regard to 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 that is worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers constantly competed for skilled labor and now have become significantly aggressive. With fewer conserve entering the auto repair profession and opting instead for careers such as health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to hire and retain these competent employees. The automotive technician, would you rather appeal to Audi or Joe’s Shed?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 one year with benefits while an unbiased shop owner would to be able to gross over a $1,000,000 1 yr to make that and have absolutely to afford their own benefits and social safe practices.
Because the hands down economic realities many independent owners are at this moment closing their shops all night to work for GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, any time a diagnosis created from and an area needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding inside the repair along with increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee 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 applications.
The manufacturers claim their technical facts are proprietary everybody is making independents claim the information should be available to anyone that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777