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 economic.
The global problem will 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 kind 100,000 mile warranty relating to this the independent will get little chance to work with that car for the first 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab in order to 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 lets start work on the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices to be able to independent repair shop prices.
But it’s and not just competitive pricing that is worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers often competed for skilled labor and now have become a great deal more aggressive. With fewer right now entering business repair profession and opting instead for careers regarding example health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to rent and retain these highly skilled employees. As an automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician actually make $100,000 yearly with benefits while an unbiased shop owner would must gross during a $1,000,000 one year to make that and still have to pay for their own benefits and social security.
Because of these economic realities many independent owners have started closing their shops all night 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 rrssues.
Additionally, if a diagnosis is made and a part needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding increase the repair and also increasing customer care. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee conflict. Techs cannot fix cars without information and love a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical details are proprietary while the independents claim the information should be around to anyone who owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777