If you see fewer auto repair shops in your community 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 may 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 site to website 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in an effort to keep up 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 to be able to independent repair shop prices.
But it’s and not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers constantly competed for skilled labor and now have become a lot aggressive. With fewer folks entering significantly repair profession and opting instead for careers such as health and technology, overall talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to rent and retain these highly skilled employees. As an automotive technician, would you rather work in 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 a whole year with benefits while a private shop owner would must gross within a $1,000,000 every year to make that and still have to reimburse their own benefits and social security.
Because from the economic realities many independent owners are usually closing their shops and going to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, in the event the diagnosis appeared and an area needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding up the repair along with increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee conflict. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical data is proprietary individuals independents claim the information should build up to anybody that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777