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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem could 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 operate that car for their early 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in an effort 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 in order to independent repair shop prices.
But it’s but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers often competed for skilled labor and will have become significantly aggressive. With fewer right now entering business repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents you ought to hire and retain these highly skilled employees. The automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ A top end dealer technician may well make $100,000 a whole year with benefits while a private shop owner would require gross within a $1,000,000 one year to make that and have to purchase their own benefits and social equity.
Because in the economic realities many independent owners are at this moment closing their shops on and on 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 injuries.
Additionally, any time a diagnosis is made and a part needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding in the repair period and increasing customer care. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee war. 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 solutions.
The manufacturers claim that the technical facts are proprietary everybody is making independents claim the information should build up to anybody that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777