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 business.
The global problem could 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 at least one 100,000 mile warranty so that you can the independent will get little chance to improve 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 along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such as the 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 for example Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s simply competitive pricing naturally worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers often competed for skilled labor and already have got become significantly aggressive. With fewer conserve entering significantly repair profession and opting instead for careers like health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to utilize and retain these highly skilled employees. Regarding automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician earns $100,000 a year with benefits while wages shop owner would ought to gross over a $1,000,000 one year to make that and still have to reimburse their own benefits and social safe practices.
Because of this economic realities many independent owners are at this moment closing their shops and going to enhance 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 problems.
Additionally, is not diagnosis created from and a portion needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding increase the repair and also increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee showdown. Techs cannot fix cars without information and you’ll find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical data is proprietary while independents claim the information should be around to anybody that owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777