If you see fewer auto repair shops in your town 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 the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 some sort of 100,000 mile warranty which means that the independent will get little chance to operate that car for site to website 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab are 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 feat to keep 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 similar to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have been competed for skilled labor and may have become even more aggressive. With fewer folks entering effect on repair profession and opting instead for careers such as health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to hire and retain these highly skilled employees. The automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician may well make $100,000 a whole year with benefits while an unbiased shop owner would ought to gross within the $1,000,000 1 yr to make that and have to obtain their own benefits and social safe practices.
Because from the economic realities many independent owners have started closing their shops all night to be suitable for 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 injuries.
Additionally, in the event the diagnosis created from and a part needs replacing the dealer will achieve it in stock, not only verifying the diagnosis but greatly speeding in the repair time and increasing customer care. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee showdown. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that their technical results are proprietary in terms of independents claim the information should be available to anybody that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777