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 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 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 work with that car for site to website 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot 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 in order to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers often competed for skilled labor and will have become significantly aggressive. With fewer individuals entering effect on repair profession and opting instead for careers such as health and technology, overall talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to rent and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are discovering the best ‘mechanics’ or as they may be known today, ‘technicians.’ A top end dealer technician can make $100,000 yearly with benefits while wages shop owner would to be able to gross a lot more $1,000,000 every year to make that as well as have to afford their own benefits and social basic safety.
Because in the economic realities many independent owners are currently closing their shops all night to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, in the event the diagnosis appeared and an area needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding in the repair and also increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not only a skilled employee war. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that the technical facts are proprietary while the independents claim the information should accumulate to anybody that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777