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 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 ten or fifteen 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 particular person yourself the independent will get little chance to work with 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 looking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such to be a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying to keep on top of 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 to be able to independent repair shop prices.
But it’s simply competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers often competed for skilled labor and may have become a great deal more aggressive. With fewer individuals entering significantly repair profession and opting instead for careers such as health and technology, overall talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to hire and retain these competent employees. The automotive technician, would you rather work for Audi or Joe’s House?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ A premier end dealer technician may well make $100,000 twelve months with benefits while an independent shop owner would to be able to gross a lot more $1,000,000 every year to make that as well as have to purchase their own benefits and social protective measures.
Because of these economic realities many independent owners have started closing their shops all night to enhance 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 health issues.
Additionally, any time a diagnosis is made and a portion needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding increase the repair as well as increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical information is proprietary individuals independents claim the information should be for sale to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777