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 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 getting 100,000 mile warranty particular person yourself the independent will get little chance to improve 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 looking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a feat to keep plan 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 similar to independent repair shop prices.
But it’s as well as competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers constantly competed for skilled labor and may have become significantly aggressive. With fewer right now entering significantly repair profession and opting instead for careers like health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to work with and retain these highly skilled employees. As an automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician actually make $100,000 yearly with benefits while an independent shop owner would have to gross within the $1,000,000 every year to make that and have to purchase their own benefits and social safe practices.
Because in the economic realities many independent owners are at this moment closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, if a diagnosis appeared and a fraction needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding within the repair time and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee world 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 equipment.
The manufacturers claim their technical facts are proprietary while independents claim the information should be around to anybody that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777