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 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 some sort of 100,000 mile warranty so that you can the independent will get little chance to handle that car for one 5-10 years it is owned.
As new car sales margins go 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 value added benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat to keep plan 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 for you to independent repair shop prices.
But it’s but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers constantly competed for skilled labor and already have become significantly aggressive. With fewer conserve entering business repair profession and opting instead for careers with regard to health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents you ought to hire and retain these competent employees. As an automotive technician, would you rather appeal to Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician can make $100,000 a whole year with benefits while an independent shop owner would require gross a lot more $1,000,000 every year to make that as well as have to pay for their own benefits and social equity.
Because from the economic realities many independent owners are currently closing their shops on and on to work 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 health issues.
Additionally, in the event the diagnosis created from and a part needs replacing the dealer will achieve it in stock, not only verifying diagnosing but greatly speeding in the repair as well as increasing customer support. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical information is proprietary everybody is making independents claim the information should build up to anyone that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777