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 as well as 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 some sort of 100,000 mile warranty meaning that the independent will get little chance to handle 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 seeking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers for example Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers have always competed for skilled labor and will have become significantly aggressive. With fewer right now entering significantly repair profession and opting instead for careers with regard to health and technology, the total talent pool of the superior skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to work with and retain these competent employees. Being an automotive technician, would you rather improve Audi or Joe’s Rummage?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician may well make $100,000 a year with benefits while a self-employed shop owner would ought to gross a lot more $1,000,000 1 yr to make that and still have to reimburse their own benefits and social basic safety.
Because from the economic realities many independent owners have started closing their shops and going 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 rrssues.
Additionally, if a diagnosis appeared and a part needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding up the repair period and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee struggle. 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 equipment.
The manufacturers claim that the technical results are proprietary in terms of independents claim the information should be available to anyone that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777