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 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer kind 100,000 mile warranty which means that the independent will get little chance to improve that car for site to website 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order 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 forced to give courtesy rides to customers in trying to keep up with 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 in order to independent repair shop prices.
But it’s not just competitive pricing that is worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers have been competed for skilled labor and will have become a great deal more aggressive. With fewer young people entering business repair profession and opting instead for careers like health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to work with and retain these competent employees. Regarding automotive technician, would you rather are employed by Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician may well $100,000 twelve months with benefits while a self-employed shop owner would ought to gross within a $1,000,000 one year to make that and have to obtain their own benefits and social basic safety.
Because in the economic realities many independent owners are currently closing their shops all night to be employed by 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 rrssues.
Additionally, any time a diagnosis is intended and a fraction needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding increase the repair and also increasing customer support. Big advantage Cadillac and Bmw.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical information is proprietary in terms of independents claim the information should be for sale to anyone who owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777