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 business.
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 kind 100,000 mile warranty so that you can the independent will get little chance to work on 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 in order to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as the loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in trying 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 not worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers have been competed for skilled labor and will have become even more aggressive. With fewer folks entering significantly repair profession and opting instead for careers such as health and technology, fundamental talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly it becoming harder 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 discovering 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 over a $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 enhance GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, if a diagnosis appeared and an area needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding inside the repair along with increasing client satisfaction. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee struggle. 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 that their technical data is proprietary everybody is making independents claim the information should build up to anyone that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777