If you see fewer auto repair shops in your area 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 is 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 so that you can the independent will get little chance to work with 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 in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such being a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in hard work to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers with regard to 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 but not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers have been competed for skilled labor and now have become a great deal more aggressive. With fewer right now entering effect on repair profession and opting instead for careers such as health and technology, overall talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming more difficult for independents to work with and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician earns $100,000 twelve months with benefits while a private shop owner would to be able to gross over a $1,000,000 a year to make that as well as have to reimburse their own benefits and social security.
Because the hands down economic realities many independent owners are usually closing their shops and going to work for 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 problems.
Additionally, each time a diagnosis appeared and a part needs replacing the dealer will have it in stock, not only verifying the verification but greatly speeding inside the repair along with increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical information is proprietary while the independents claim the information should be available to anyone who owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777