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 the latest 100,000 mile warranty meaning that the independent will get little chance to improve that car for the most important 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 in the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as a loaner car while repairs are being made. Independents are 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 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 simply competitive pricing that is worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers have been competed for skilled labor and already have become even more aggressive. With fewer individuals entering significantly repair profession and opting instead for careers like health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to utilize and retain these highly skilled employees. Being an automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as may well known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 one year with benefits while an independent shop owner would ought to gross over a $1,000,000 a year to make that and have to pay for their own benefits and social safe practices.
Because of these economic realities many independent owners have started closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, if a diagnosis appeared and a part of needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding up the repair and also increasing customer care. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee conflict. Techs cannot fix cars without information and love a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical results are proprietary everybody is making independents claim the information should build up to anyone that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777