If you see fewer auto repair shops in your community 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 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 so that you can the independent will get little chance to work with that car for site to website 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 along the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying to keep up with the dealers since customers now expect this service.
Furthermore dealers regarding example 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 simply competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers constantly competed for skilled labor and will have become significantly aggressive. With fewer young people entering significantly repair profession and opting instead for careers regarding example health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to hire and retain these highly skilled employees. Being an automotive technician, would you rather appeal to Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician may well $100,000 twelve months with benefits while a private shop owner would must gross within the $1,000,000 every year to make that and have to obtain their own benefits and social equity.
Because of these economic realities many independent owners have started closing their shops and going to enhance GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, in the event the diagnosis is intended and a part of needs replacing the dealer will buy it in stock, not only verifying the identification but greatly speeding up the repair and also increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee conflict. Techs cannot fix cars without information and you will find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical data is proprietary while independents claim the information should be for sale to anyone that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777