If you see fewer auto repair shops in your town 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 could 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 getting 100,000 mile warranty particular person yourself the independent will get little chance to operate that car for the first 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in an effort to keep lets start work on 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 to be able to independent repair shop prices.
But it’s but not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers have always competed for skilled labor and already have got become significantly aggressive. With fewer individuals entering effect on repair profession and opting instead for careers such as health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to rent and retain these competent employees. As an automotive technician, would you rather work in Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician may well make $100,000 a year with benefits while wages shop owner would ought to gross within the $1,000,000 1 yr to make that and still have to pay for their own benefits and social safe practices.
Because of these economic realities many independent owners are currently closing their shops on and on to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, any time a diagnosis is comprised and an area needs replacing the dealer will are in stock, not only verifying diagnosing but greatly speeding increase the repair period and increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim that their technical facts are proprietary everybody is making independents claim the information should be for sale to anybody that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777