If you see fewer auto repair shops towards 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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 the latest 100,000 mile warranty particular person yourself the independent will get little chance to work on 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 up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in hard work to keep with 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 comparable to independent repair shop prices.
But it’s and not just competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers have always competed for skilled labor and will have become significantly aggressive. With fewer folks entering business repair profession and opting instead for careers such as health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents you ought to hire and retain these competent employees. Being an automotive technician, would you rather work for Audi or Joe’s House?
The dealers are collecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician may well $100,000 a whole year with benefits while a self-employed shop owner would to be able to gross within a $1,000,000 a year to make that and have to purchase their own benefits and social protective measures.
Because the hands down economic realities many independent owners have started closing their shops on and on to work for GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, in the event the diagnosis is intended and a part needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding inside the repair time and increasing service delivery. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee conflict. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that the technical data is proprietary while independents claim the information should be for sale to anyone who owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777