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 as well as the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem could 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 kind 100,000 mile warranty so that you can the independent will get little chance to operate that car for their early 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 are adding other useful benefits such being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in a shot to keep on top of 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 as well as competitive pricing naturally worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers constantly competed for skilled labor and already have become significantly aggressive. With fewer individuals entering business repair profession and opting instead for careers like health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to utilize and retain these competent employees. Being an automotive technician, would you rather are employed by Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 a year with benefits while a private shop owner would must gross within a $1,000,000 1 yr to make that and have absolutely to reimburse their own benefits and social basic safety.
Because from the economic realities many independent owners are usually closing their shops all night to be employed by 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 crises.
Additionally, in the event the diagnosis is comprised and a fraction needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding inside the repair along with increasing customer care. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical data is proprietary everybody is making independents claim the information should accumulate to anybody that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777