If you see fewer auto repair shops in your community 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer kind 100,000 mile warranty meaning that the independent will get little chance to handle that car for one 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab have been 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 trying to keep with the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s as well as competitive pricing is actually not worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers generally competed for skilled labor and will have become a great deal more aggressive. With fewer conserve entering automobile repair profession and opting instead for careers such as health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to utilize and retain these highly skilled employees. A great automotive technician, would you rather work for Audi or Joe’s Garage?
The dealers are picking up the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 a year with benefits while an independent shop owner would to be able to gross within the $1,000,000 twelve months to make that and have to purchase their own benefits and social equity.
Because of these economic realities many independent owners are currently closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, any time a diagnosis created from and a part of needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding within the repair and also increasing client satisfaction. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee struggle. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical data is proprietary in terms of independents claim the information should be around to anyone that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777