If you see fewer auto repair shops towards 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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will 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 at least one 100,000 mile warranty relating to this the independent will get little chance to handle that car for one 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep up with 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 comparable to independent repair shop prices.
But it’s as well as competitive pricing that is worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers have been competed for skilled labor and will have become a lot aggressive. With fewer individuals entering effect on 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 tougher for independents to hire and retain these highly skilled employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician may well $100,000 a year with benefits while a self-employed shop owner would ought to gross over a $1,000,000 a year to make that as well as have to reimburse their own benefits and social protective measures.
Because the hands down economic realities many independent owners have started closing their shops all night to be suitable 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 is comprised and an area needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding in the repair time and increasing customer care. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee showdown. 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 details are proprietary while the independents claim the information should be for sale to anybody that owns or fixes build of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777