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 also 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 at least one 100,000 mile warranty which means that the independent will get little chance to improve 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 in order to their service departments to make up 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 think you 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 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 simply competitive pricing that is worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers have always competed for skilled labor and now have become a lot aggressive. With fewer right now entering automobile repair profession and opting instead for careers such as health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to rent and retain these highly skilled employees. A great automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician may well $100,000 a whole year with benefits while wages shop owner would ought to gross within a $1,000,000 1 yr to make that and have absolutely to pay for their own benefits and social protective measures.
Because from the 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 mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, each time a diagnosis created from and a fraction needs replacing the dealer will are in stock, not only verifying the diagnosis but greatly speeding inside the repair and also increasing customer support. 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 their technical results are proprietary while independents claim the information should be for sale to anybody that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777