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 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 kind 100,000 mile warranty meaning that the independent will get little chance to handle that car for the first 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 inside the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in an effort to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers such as 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 and not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers constantly competed for skilled labor and already have got become significantly aggressive. With fewer individuals entering the auto repair profession and opting instead for careers with regard to health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to utilize and retain these competent employees. The automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician actually make $100,000 a year with benefits while an unbiased shop owner would must gross over a $1,000,000 a year to make that and have to pay for their own benefits and social basic safety.
Because of these economic realities many independent owners are usually closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, in the event the diagnosis is comprised and a part needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding within the repair period and increasing customer support. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee world war. 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 equipment.
The manufacturers claim their technical details are proprietary everybody is making independents claim the information should be for sale to anyone that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777