If you see fewer auto repair shops in your community 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 business.
The global problem could 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 some sort of 100,000 mile warranty which means that the independent will get little chance to handle 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 looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in hard work to keep on top of 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 to be able to independent repair shop prices.
But it’s as well as competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers have been competed for skilled labor and already have become significantly aggressive. With fewer right now entering the auto repair profession and opting instead for careers such as health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to hire and retain these competent employees. As an automotive technician, would you rather improve Audi or Joe’s Rummage?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician may well $100,000 one year with benefits while an independent shop owner would require gross a lot more $1,000,000 a year to make that as well as have to pay for their own benefits and social safe practices.
Because in the economic realities many independent owners are at this moment closing their shops all night to work 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 injuries.
Additionally, if a diagnosis is intended and a fraction needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding up the repair and also increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not only 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 applications.
The manufacturers claim that their technical results are proprietary everybody is making independents claim the information should be around to anybody that owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777