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 and also 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 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 which means that the independent will get little chance to work with that car for the first 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 already been adding other useful benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep with 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 comparable to independent repair shop prices.
But it’s as well as competitive pricing that is worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers often competed for skilled labor and will have become even more aggressive. With fewer young people entering effect on repair profession and opting instead for careers such as health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to work with and retain these competent employees. The automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician can make $100,000 twelve months with benefits while a private shop owner would must gross a lot more $1,000,000 a year to make that and still have to reimburse their own benefits and social basic safety.
Because of this economic realities many independent owners are currently 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 problems.
Additionally, each time a diagnosis is intended and an area needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding up the repair along with increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and love a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical results are proprietary individuals 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
