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 as well as 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 the latest 100,000 mile warranty which means that the independent will get little chance to work with that car for the first 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 up the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat 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 comparable to independent repair shop prices.
But it’s not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers have been competed for skilled labor and will have become a great deal more aggressive. With fewer folks entering significantly repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to hire and retain these competent employees. Regarding automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as they are known today, ‘technicians.’ An excellent end dealer technician can make $100,000 a whole year with benefits while a private shop owner would to be able to gross a lot more $1,000,000 a year to make that as well as have to purchase their own benefits and social basic safety.
Because the hands down economic realities many independent owners are now closing their shops on and on to be suitable for 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 injuries.
Additionally, if a diagnosis appeared and a portion needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding inside the repair along with increasing service delivery. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical data is proprietary everybody is making independents claim the information should be for sale to anybody that owns or fixes that make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777