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 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer at least one 100,000 mile warranty meaning that the independent will get little chance to operate that car for their early 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 in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as the loaner car while repairs are being made. Independents 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 similar to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers constantly competed for skilled labor and may have become significantly aggressive. With fewer folks entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to utilize and retain these competent employees. Regarding automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician actually make $100,000 a year with benefits while an independent shop owner would to be able to gross during a $1,000,000 1 yr to make that and still have to pay for their own benefits and social basic safety.
Because in the economic realities many independent owners are currently closing their shops all night to work for 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 health issues.
Additionally, if a diagnosis created from and an area needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding increase the repair as well as increasing service delivery. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical details are proprietary while independents claim the information should be available to anyone who owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777