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 and also 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 relating to this the independent will get little chance to operate that car for the first 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 already been adding other useful benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in an effort to keep with the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s not just competitive pricing that is worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers often competed for skilled labor and will have become a lot aggressive. With fewer young people entering effect on repair profession and opting instead for careers regarding example health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to hire and retain these competent employees. The automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ An excellent end dealer technician can make $100,000 twelve months with benefits while a private shop owner would must gross during a $1,000,000 a year to make that and still have to purchase their own benefits and social basic safety.
Because the hands down economic realities many independent owners are now closing their shops on and on to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, each time a diagnosis is intended and a part of needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding inside the repair along with increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee struggle. 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 solutions.
The manufacturers claim their technical results are proprietary individuals independents claim the information should be for sale to anyone that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777