If you see fewer auto repair shops in your area 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 economic.
The global problem is 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 getting 100,000 mile warranty so that you can the independent will get little chance to work with that car for one 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab happen to 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 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 in order to independent repair shop prices.
But it’s not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers generally competed for skilled labor and now have become significantly aggressive. With fewer conserve entering business repair profession and opting instead for careers with regard to health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to hire and retain these competent employees. Regarding automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician may well $100,000 twelve months with benefits while a self-employed shop owner would must gross within the $1,000,000 1 yr to make that and get to reimburse their own benefits and social equity.
Because in the economic realities many independent owners are now closing their shops and going to enhance 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 rrssues.
Additionally, in the event the diagnosis is intended and a fraction needs replacing the dealer will are in stock, not only verifying the identification but greatly speeding within the repair period and increasing customer support. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and you’ll find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical details are proprietary while independents claim the information should be around to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777