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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will 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 at least one 100,000 mile warranty which means that the independent will get little chance to handle that car for one 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep with the dealers since customers now expect this service.
Furthermore dealers for 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 that is worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers have been competed for skilled labor and already have got become a great deal more aggressive. With fewer young people entering business repair profession and opting instead for careers such as health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to hire and retain these highly skilled employees. Regarding automotive technician, would you rather work in Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician earns $100,000 yearly with benefits while wages shop owner would to be able to gross a lot more $1,000,000 one year to make that and have absolutely to purchase their own benefits and social protective measures.
Because in the economic realities many independent owners are currently closing their shops on and on to enhance GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, if a diagnosis is intended and a fraction needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding up the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee showdown. Techs cannot fix cars without information and you will find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical information is proprietary while independents claim the information should accumulate to anyone that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777