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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem may 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 some sort of 100,000 mile warranty meaning that the independent will get little chance to handle that car for one 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying to keep on top of 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 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 may also be won by the dealers: the dealers constantly competed for skilled labor and now have become significantly more aggressive. With fewer young people entering significantly repair profession and opting instead for careers like health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly appeared becoming more difficult for independents to utilize and retain these competent employees. Regarding automotive technician, would you rather work in Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 yearly with benefits while a self-employed shop owner would must gross within the $1,000,000 1 yr to make that as well as have to purchase their own benefits and social security.
Because of this economic realities many independent owners are usually closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, if a diagnosis appeared and a part of needs replacing the dealer will achieve it in stock, not only verifying the diagnosis but greatly speeding increase the repair time and increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it is not just 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 equipment.
The manufacturers claim their technical facts are proprietary individuals independents claim the information should accumulate to anybody that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777