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 may be 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 some sort of 100,000 mile warranty relating to this the independent will get little chance to operate that car for site to website 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying 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 similar to independent repair shop prices.
But it’s not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers generally competed for skilled labor and will have become even more aggressive. With fewer young people entering automobile repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to work with and retain these highly skilled employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as may well known today, ‘technicians.’ A top end dealer technician earns $100,000 a whole year with benefits while wages shop owner would to be able to gross within the $1,000,000 twelve months to make that as well as have to afford their own benefits and social security.
Because of this economic realities many independent owners are currently closing their shops on and on to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, each time a diagnosis created from and a fraction needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding inside the repair time and increasing service delivery. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee conflict. 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 applications.
The manufacturers claim that their technical results are proprietary in terms of independents claim the information should build up to anybody that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777