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 is 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 the latest 100,000 mile warranty relating to this 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 looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in trying 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 for you to independent repair shop prices.
But it’s as well as competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have been competed for skilled labor and now have become significantly aggressive. With fewer folks entering effect on 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 harder for independents you ought to hire and retain these highly skilled employees. Being an automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician earns $100,000 one year with benefits while wages shop owner would have to gross a lot more $1,000,000 1 yr to make that and have absolutely to purchase their own benefits and social basic safety.
Because the hands down economic realities many independent owners are at this moment closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, each time a diagnosis created from and a part needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding up the repair time and increasing customer care. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical data is proprietary while the independents claim the information should be for sale 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