If you see fewer auto repair shops towards 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 economic.
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 relating to this the independent will get little chance to work with 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 inside the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as the loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in an effort to keep plan the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s simply competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers have been competed for skilled labor and already have got become significantly more aggressive. With fewer young people entering effect on repair profession and opting instead for careers such as health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to hire and retain these competent employees. As an automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are collecting the best ‘mechanics’ or as may well known today, ‘technicians.’ An excellent end dealer technician earns $100,000 twelve months with benefits while an independent shop owner would require gross within the $1,000,000 1 yr to make that and have absolutely to afford their own benefits and social security.
Because from the economic realities many independent owners are at this moment closing their shops and going to work with 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 injuries.
Additionally, is not diagnosis is intended and an area needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding within the repair as well as increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical results are proprietary in terms of independents claim the information should be for sale to anyone that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777