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 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 work with 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 seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep plan 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 and not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers have been competed for skilled labor and may have become a great deal more aggressive. With fewer individuals entering significantly repair profession and opting instead for careers like health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents you ought to hire and retain these competent employees. Being an automotive technician, would you rather are employed by Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician can make $100,000 a whole year with benefits while an unbiased shop owner would must gross within the $1,000,000 1 yr to make that and have absolutely to purchase their own benefits and social protective measures.
Because the hands down economic realities many independent owners are now closing their shops all night to work 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 health issues.
Additionally, is not diagnosis is intended and a part needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding increase the repair period and 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’ll find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical facts are proprietary in terms of independents claim the information should be around 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