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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem could be 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 kind 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 have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such being a loaner car while repairs are being made. Independents are usually 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 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 as well as competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers have been competed for skilled labor and may have become significantly aggressive. With fewer individuals entering business repair profession and opting instead for careers with regard to health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to rent and retain these highly skilled employees. Regarding automotive technician, would you rather are employed by Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician can make $100,000 yearly with benefits while an independent shop owner would require gross within a $1,000,000 1 yr to make that and have absolutely to obtain their own benefits and social basic safety.
Because in the economic realities many independent owners have started closing their shops all night to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, is not diagnosis appeared and a fraction needs replacing the dealer will achieve it in stock, not only verifying the diagnosis but greatly speeding up the repair and also increasing service delivery. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical data is proprietary everybody is making independents claim the information should accumulate to anyone that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777