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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem is 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 some sort of 100,000 mile warranty so that you can the independent will get little chance to operate that car for one 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab happen 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 up 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 comparable to independent repair shop prices.
But it’s as well as competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers have always competed for skilled labor and will have become significantly aggressive. With fewer conserve entering business repair profession and opting instead for careers regarding example health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to hire and retain these competent employees. A great automotive technician, would you rather appeal to Audi or Joe’s Rummage?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician earns $100,000 a year with benefits while a self-employed shop owner would must gross within the $1,000,000 twelve months to make that as well as have to obtain their own benefits and social security.
Because in the economic realities many independent owners are currently closing their shops and going to enhance 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 rrssues.
Additionally, is not diagnosis is made and a portion needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding increase the repair period and increasing customer support. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and you will find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical information is proprietary while independents claim the information should accumulate to anybody that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777