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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 the latest 100,000 mile warranty relating to this the independent will get little chance to work on 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 the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in hard work 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 simply competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers have been competed for skilled labor and already have become even more aggressive. With fewer conserve entering significantly repair profession and opting instead for careers with regard to health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents you ought to hire and retain these highly skilled employees. A great automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician actually make $100,000 one year with benefits while a self-employed shop owner would require gross within the $1,000,000 every year to make that and get to pay for their own benefits and social security.
Because the hands down economic realities many independent owners have started closing their shops and going to be suitable for 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 problems.
Additionally, each time a diagnosis created from and a portion needs replacing the dealer will achieve it in stock, not only verifying diagnosing but greatly speeding inside the repair along with increasing customer support. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that the technical details are proprietary in terms of independents claim the information should be available to anyone who owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777