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 and also 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 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 so that you can the independent will get little chance to handle that car for site to website 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking 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 think you are forced to give courtesy rides to customers in trying to keep 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 similar to independent repair shop prices.
But it’s as well as competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have always competed for skilled labor and will have become significantly more aggressive. With fewer young people entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to hire and retain these competent employees. The automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ A top end dealer technician earns $100,000 a whole year with benefits while an unbiased shop owner would to be able to gross over a $1,000,000 a year to make that and have absolutely to obtain their own benefits and social equity.
Because in the economic realities many independent owners are at this moment closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, each time a diagnosis is made and an area needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding in the repair and also increasing customer support. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee conflict. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical results are proprietary while the independents claim the information should be around to anybody that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777