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 at least one 100,000 mile warranty particular person yourself the independent will get little chance to work on that car for the most important 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 the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such as being a loaner car while repairs are being made. Independents are increasingly 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 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 as well as competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers have been competed for skilled labor and already have got become even more aggressive. With fewer right now entering effect on repair profession and opting instead for careers like health and technology, essential talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to work with and retain these highly skilled employees. A great automotive technician, would you rather appeal to Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 yearly with benefits while an unbiased shop owner would have to gross within the $1,000,000 one year to make that as well as have to reimburse their own benefits and social security.
Because from the economic realities many independent owners have started closing their shops and going to be employed by 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, each time a diagnosis created from and a fraction needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding increase the repair period and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical results are proprietary everybody is making independents claim the information should be around to anyone who owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777