If you see fewer auto repair shops in your community 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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
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 which means that 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 the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in hard work to keep with 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 for you to independent repair shop prices.
But it’s simply competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers have been competed for skilled labor and already have become significantly more aggressive. With fewer folks entering significantly repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of the superior skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to rent and retain these highly skilled employees. A great automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician can make $100,000 yearly with benefits while a self-employed shop owner would require gross during a $1,000,000 every year to make that and have absolutely to reimburse their own benefits and social safe practices.
Because from the economic realities many independent owners have started closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis appeared and a portion needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding in the repair along with increasing customer care. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that the technical information is proprietary individuals independents claim the information should be around to anyone who owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777