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 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 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 particular person yourself 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 up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such as being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in trying to keep up 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 and not just competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers have been competed for skilled labor and now have become even more aggressive. With fewer right now entering automobile repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly it is becoming tougher for independents to hire and retain these competent employees. A great automotive technician, would you rather work for Audi or Joe’s Drive way?
The dealers are selecting the best ‘mechanics’ or as may well known today, ‘technicians.’ A top end dealer technician actually make $100,000 a year with benefits while a private shop owner would to be able to gross a lot more $1,000,000 1 yr to make that and have absolutely to pay for their own benefits and social equity.
Because from the economic realities many independent owners are now closing their shops all night to be employed by GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, any time a diagnosis created from and a portion needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding within the repair and also increasing customer care. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee conflict. Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that their technical data is proprietary while independents claim the information should build up to anyone who owns or fixes help to make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777