If you see fewer auto repair shops near 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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will be 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 at least one 100,000 mile warranty which means that the independent will get little chance to work on that car for the most important 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 the difference.
Additionally many dealers such as Porsche and Saab are adding other value added benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in an effort 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 for you to independent repair shop prices.
But it’s simply competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won by the dealers: the dealers often competed for skilled labor and will have become a great deal more aggressive. With fewer folks entering automobile repair profession and opting instead for careers such as health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to utilize and retain these competent employees. Regarding automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are taking the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician may well make $100,000 a whole year with benefits while a self-employed shop owner would must gross over a $1,000,000 twelve months to make that and get to obtain their own benefits and social equity.
Because of this economic realities many independent owners are currently closing their shops all night to be employed by 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 crises.
Additionally, in the event the diagnosis created from and a portion needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding increase the repair along with increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that the technical information is proprietary while the independents claim the information should be available to anyone that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777