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 may 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 the latest 100,000 mile warranty meaning that the independent will get little chance to operate that car for the first 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 in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep up with the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers often competed for skilled labor and already have become a lot aggressive. With fewer individuals entering automobile repair profession and opting instead for careers with regard to health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents you ought to hire and retain these competent employees. As an automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician earns $100,000 one year with benefits while a self-employed shop owner would must gross a lot more $1,000,000 a year to make that and still have to obtain their own benefits and social basic safety.
Because in the economic realities many independent owners are at this moment closing their shops on and on to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, in the event the diagnosis is made and a part needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding up the repair along with increasing customer support. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee conflict. Techs cannot fix cars without information and love a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical facts are proprietary individuals independents claim the information should accumulate to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777