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 could 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 which means that the independent will get little chance to improve that car for the most important 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 along the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as a loaner car while repairs are being made. Independents are increasingly being 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 to be able to independent repair shop prices.
But it’s as well as competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have always competed for skilled labor and now have become significantly aggressive. With fewer individuals entering business repair profession and opting instead for careers such as health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to hire and retain these competent employees. Regarding automotive technician, would you rather work in Audi or Joe’s Shed?
The dealers are taking the best ‘mechanics’ or as may well known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 twelve months with benefits while a private shop owner would to be able to gross over a $1,000,000 one year to make that and still have to obtain their own benefits and social protective measures.
Because of these economic realities many independent owners are currently 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 crises.
Additionally, any time a diagnosis is comprised and a fraction needs replacing the dealer will have it in stock, not only verifying the verification but greatly speeding within the repair as well as increasing service delivery. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee showdown. 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 that their technical data is proprietary everybody is making independents claim the information should be for sale to anyone that owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777