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 may 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 work on that car for one 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 inside the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as the loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in a shot to keep on top of the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices for you to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers often competed for skilled labor and may have become a lot aggressive. With fewer conserve entering business repair profession and opting instead for careers with regard to health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to rent and retain these competent employees. The automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician earns $100,000 a year with benefits while an unbiased shop owner would to be able to gross within the $1,000,000 twelve months to make that and get to reimburse their own benefits and social security.
Because from the economic realities many independent owners are currently closing their shops all night to be suitable 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 crises.
Additionally, is not diagnosis created from and a fraction needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding within the repair period and increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee world war. Techs cannot fix cars without information and there has been a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical information is proprietary individuals independents claim the information should be around to anyone who owns or fixes create of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536