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 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 kind 100,000 mile warranty meaning that 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 go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as the loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a shot to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers for example 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 but not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers have always competed for skilled labor and now have become a lot aggressive. With fewer right now entering effect on repair profession and opting instead for careers regarding example health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly appeared becoming more difficult for independents to work with and retain these highly skilled employees. The automotive technician, would you rather are employed by Audi or Joe’s Drive way?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician earns $100,000 a year with benefits while an independent shop owner would must gross within the $1,000,000 one year to make that and have absolutely to afford their own benefits and social safe practices.
Because of this economic realities many independent owners are currently closing their shops all night to be employed by 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 rrssues.
Additionally, in the event the diagnosis created from and an area needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding increase the repair as well as increasing customer care. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and love a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical details are proprietary individuals independents claim the information should be around to anyone that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777