If you see fewer auto repair shops near 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 economic.
The global problem will 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 kind 100,000 mile warranty relating to this the independent will get little chance to work with that car for their early 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 up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying to keep with the dealers since customers now expect this service.
Furthermore dealers such as 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 is actually not worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers have always competed for skilled labor and already have become significantly more aggressive. With fewer folks entering the auto repair profession and opting instead for careers such as health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to work with and retain these highly skilled employees. The 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 top end dealer technician earns $100,000 a whole year with benefits while wages shop owner would have to gross a lot more $1,000,000 1 yr to make that as well as have to purchase their own benefits and social security.
Because of these economic realities many independent owners are currently closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis is intended and a part needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding within the repair period and increasing service delivery. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical facts are proprietary in terms of independents claim the information should be for sale to anybody that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536