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 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 so that you can the independent will get little chance to improve that car for their early 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 already been adding other useful benefits such as a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a feat 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 comparable to independent repair shop prices.
But it’s and not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers have been competed for skilled labor and already have become even more aggressive. With fewer conserve entering the auto repair profession and opting instead for careers like health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to work with and retain these highly skilled employees. The automotive technician, would you rather appeal to Audi or Joe’s Shed?
The dealers are collecting the best ‘mechanics’ or as they may be known today, ‘technicians.’ An increased end dealer technician earns $100,000 one year with benefits while a private shop owner would must gross over a $1,000,000 a year to make that and get to reimburse their own benefits and social equity.
Because the hands down economic realities many independent owners are usually closing their shops all night to work with 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 created from and a part needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding within the repair as well as increasing customer care. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee world war. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical information is proprietary in terms of independents claim the information should be available to anyone that owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777