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 is 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 operate 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 seeking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab happen to 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 hard work to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers regarding 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 and not just competitive pricing naturally worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have been competed for skilled labor and already have become significantly aggressive. With fewer young people entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to hire and retain these highly skilled employees. A great automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 twelve months with benefits while a self-employed shop owner would must gross over a $1,000,000 one year to make that and have to pay for their own benefits and social equity.
Because from the economic realities many independent owners are usually closing their shops and going to work for 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 health issues.
Additionally, in the event the diagnosis is intended and a portion needs replacing the dealer will are in stock, not only verifying diagnosing but greatly speeding increase the repair time and increasing customer care. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee struggle. Techs cannot fix cars without information and you’ll find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical results are proprietary while independents claim the information should be around to anybody that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777