If you see fewer auto repair shops near 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 along with 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 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 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 have gone down, VW, Chevrolet, Toyota and other manufacturers are in order 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 being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep on top of the dealers since customers now expect this service.
Furthermore dealers regarding example 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 naturally worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers often competed for skilled labor and will have become significantly aggressive. With fewer conserve entering automobile repair profession and opting instead for careers like health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to utilize and retain these highly skilled employees. Being an automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ An increased end dealer technician may well make $100,000 twelve months with benefits while a private shop owner would must gross a lot more $1,000,000 a year to make that and have to pay for their own benefits and social protective measures.
Because the hands down economic realities many independent owners have started closing their shops all night to work with GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, if a diagnosis appeared and a portion needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding inside the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical facts are proprietary in terms of independents claim the information should accumulate to anyone who owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777