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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem could 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 the latest 100,000 mile warranty which means that the independent will get little chance to improve that car for the most important 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 in order to adding other useful benefits such to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a feat to keep up with 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 comparable to independent repair shop prices.
But it’s and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers constantly competed for skilled labor and already have become significantly more aggressive. With fewer young people entering automobile repair profession and opting instead for careers with regard to health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents you ought to hire and retain these competent employees. As an automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are taking the best ‘mechanics’ or as may well known today, ‘technicians.’ A top end dealer technician may well $100,000 twelve months with benefits while an unbiased shop owner would must gross during a $1,000,000 one year to make that and get to obtain their own benefits and social protective measures.
Because of this economic realities many independent owners are usually closing their shops on and on to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis is intended and a part of needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding increase the repair period and increasing customer support. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee war. Techs cannot fix cars without information and love a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical details are proprietary in terms of independents claim the information should be for sale to anyone that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777