If you see fewer auto repair shops in your town 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 economic.
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 the latest 100,000 mile warranty relating to this the independent will get little chance to operate that car for their early 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 in the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep up with 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 in order to independent repair shop prices.
But it’s as well as competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers constantly competed for skilled labor and already have become even more aggressive. With fewer individuals entering effect on repair profession and opting instead for careers such as health and technology, overall talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming more difficult for independents to rent and retain these competent employees. The automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are selecting the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician can make $100,000 one year with benefits while an independent shop owner would must gross during a $1,000,000 every year to make that and have absolutely to afford their own benefits and social security.
Because in the economic realities many independent owners are currently closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, if a diagnosis appeared and an area needs replacing the dealer will are in stock, not only verifying diagnosing but greatly speeding up the repair period and increasing customer care. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee world war. Techs cannot fix cars without information and love a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical details are proprietary while the independents claim the information should build up to anyone that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777