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 business.
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 the latest 100,000 mile warranty meaning 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 looking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying to keep up with 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 comparable to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have been competed for skilled labor and now have become a great deal more aggressive. With fewer conserve entering the auto repair profession and opting instead for careers with regard to health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to utilize and retain these competent employees. Being an automotive technician, would you rather improve Audi or Joe’s Rummage?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ A premier end dealer technician may well $100,000 a year with benefits while an unbiased shop owner would have to gross over a $1,000,000 one year to make that and have to pay for their own benefits and social protective measures.
Because from the economic realities many independent owners are usually closing their shops on and on to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, in the event the diagnosis appeared and a part of needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding in the repair and also increasing customer care. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee struggle. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical data is proprietary everybody is making independents claim the information should be available to anybody that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777