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 will 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 getting 100,000 mile warranty meaning that the independent will get little chance to handle 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 in the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep with the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s as well as competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers have always competed for skilled labor and may have become even more aggressive. With fewer individuals entering business repair profession and opting instead for careers with regard to health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to utilize and retain these competent employees. A great automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ A top end dealer technician may well make $100,000 one year with benefits while wages shop owner would have to gross during a $1,000,000 a year to make that as well as have to reimburse their own benefits and social equity.
Because of this economic realities many independent owners are currently closing their shops and going to be employed by 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 rrssues.
Additionally, if a diagnosis is comprised and a portion needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding inside the repair along with increasing customer support. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee struggle. Techs cannot fix cars without information and you’ll find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical details are proprietary everybody is making independents claim the information should be available to anybody that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777