If you see fewer auto repair shops towards 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 and 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer getting 100,000 mile warranty particular person yourself the independent will get little chance to improve that car for one 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat to keep up with 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 for you to independent repair shop prices.
But it’s but not just competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers constantly competed for skilled labor and will have become a great deal more aggressive. With fewer right now entering business repair profession and opting instead for careers such as health and technology, essential talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to utilize and retain these highly skilled employees. As an automotive technician, would you rather improve Audi or Joe’s House?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ A top end dealer technician may well make $100,000 a whole year with benefits while an independent shop owner would must gross over a $1,000,000 every year to make that as well as have to obtain their own benefits and social basic safety.
Because from the economic realities many independent owners are at this moment closing their shops and going to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, if a diagnosis is made and a part needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding inside the repair as well as increasing service delivery. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical details are proprietary while independents claim the information should build up to anyone that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777