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 and 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 at least one 100,000 mile warranty particular person yourself the independent will get little chance to handle that car for the most important 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make in 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 now being forced to give courtesy rides to customers in an effort to keep on top of 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 comparable to independent repair shop prices.
But it’s but not just competitive pricing that is worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have always competed for skilled labor and already have become significantly aggressive. With fewer young people entering effect on repair profession and opting instead for careers like health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to utilize and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe’s House?
The dealers are taking the best ‘mechanics’ or as they are known today, ‘technicians.’ An excellent end dealer technician can make $100,000 one year with benefits while wages shop owner would must gross within the $1,000,000 one year to make that and still have to reimburse their own benefits and social safe practices.
Because the hands down economic realities many independent owners are at this moment closing their shops all night to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, any time a diagnosis is intended and an area needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding within the repair period and increasing customer care. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute among 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 available to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777