If you see fewer auto repair shops in your town 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 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 getting 100,000 mile warranty meaning that the independent will get little chance to work on that car for the first 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 the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as the 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 such as Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers generally competed for skilled labor and may have become a lot aggressive. With fewer folks entering the auto repair profession and opting instead for careers regarding example health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to utilize and retain these highly skilled employees. The automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 one year with benefits while a private shop owner would have to gross over a $1,000,000 every year to make that and have to obtain their own benefits and social security.
Because the hands down economic realities many independent owners are usually closing their shops on and on to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, in the event the diagnosis is intended and a part needs replacing the dealer will buy it in stock, not only verifying the identification but greatly speeding in the repair time and increasing service delivery. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee world war. 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 applications.
The manufacturers claim their technical results are proprietary in terms of independents claim the information should be available to anyone that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777