If you see fewer auto repair shops in your area 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 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 some sort of 100,000 mile warranty particular person yourself 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 along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in hard work to keep plan the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices to be able to independent repair shop prices.
But it’s not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers have always competed for skilled labor and will have become significantly more aggressive. With fewer individuals entering effect on repair profession and opting instead for careers regarding example health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to rent and retain these highly skilled employees. As an automotive technician, would you rather improve Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ A top end dealer technician can make $100,000 twelve months with benefits while a self-employed shop owner would have to gross within the $1,000,000 1 yr to make that and have to pay for their own benefits and social safe practices.
Because from the economic realities many independent owners are now closing their shops and going to be suitable for 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 injuries.
Additionally, any time a diagnosis appeared and a part of needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding increase the repair period and increasing customer support. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical facts are proprietary individuals independents claim the information should be around to anybody that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777