If you see fewer auto repair shops in your area 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 may 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 the latest 100,000 mile warranty relating to this the independent will get little chance to improve 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 looking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab happen to 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 trying to keep up with 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 in order to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers have always competed for skilled labor and may have become significantly more aggressive. With fewer young people entering automobile repair profession and opting instead for careers such as health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to rent and retain these highly skilled employees. A great automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician can make $100,000 a whole year with benefits while a self-employed shop owner would must gross within the $1,000,000 one year to make that and have to obtain their own benefits and social safe practices.
Because the hands down economic realities many independent owners are now 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, is not diagnosis created from and a part of needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding in the repair along with increasing service delivery. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee conflict. Techs cannot fix cars without information and there’s a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical results are proprietary individuals independents claim the information should build up to anybody that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777