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 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer the latest 100,000 mile warranty which means that the independent will get little chance to work with 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 in order to their service departments to make in 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 feat to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers for 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 that’s the worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers constantly competed for skilled labor and now have become a great deal more aggressive. With fewer individuals entering the auto repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to rent and retain these competent employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are discovering the best ‘mechanics’ or as may well known today, ‘technicians.’ An increased end dealer technician actually make $100,000 one year with benefits while wages shop owner would have to gross a lot more $1,000,000 one year to make that and get to pay for their own benefits and social security.
Because in the economic realities many independent owners are at this moment closing their shops on and on to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, any time a diagnosis appeared and an area needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding increase the repair period and increasing service delivery. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee world war. Techs cannot fix cars without information and you will find a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical information is proprietary while the independents claim the information should build up to anybody that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777