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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
The global problem will 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 the latest 100,000 mile warranty meaning that 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 the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as the loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep up with the dealers since customers now expect this service.
Furthermore dealers for example 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 and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers often competed for skilled labor and already have become a lot aggressive. With fewer right now entering business repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to work with and retain these highly skilled employees. As an automotive technician, would you rather are employed by Audi or Joe’s Drive way?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ A top end dealer technician earns $100,000 yearly with benefits while an unbiased shop owner would have to gross within the $1,000,000 every year to make that as well as have to obtain their own benefits and social safe practices.
Because from the economic realities many independent owners have started closing their shops on and on to be employed by 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 health issues.
Additionally, each time a diagnosis is made and a part needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding up the repair and also increasing customer support. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee conflict. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical results are proprietary individuals independents claim the information should accumulate to anyone who owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777