If you see fewer auto repair shops towards 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 getting 100,000 mile warranty which means that the independent will get little chance to improve that car for one 5-10 years it is owned.
As new car sales margins have gone 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 happen to adding other useful benefits such being a loaner car while repairs are being made. Independents think you are 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 similar to independent repair shop prices.
But it’s simply competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers have been competed for skilled labor and will have become a great deal more aggressive. With fewer folks entering effect on repair profession and opting instead for careers like health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly appeared becoming more difficult for independents you ought to hire and retain these competent employees. Regarding automotive technician, would you rather improve Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician may well make $100,000 yearly with benefits while wages shop owner would must gross within a $1,000,000 every year to make that as well as have to reimburse their own benefits and social security.
Because of this economic realities many independent owners have started closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, any time a diagnosis appeared and an area needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding inside the repair time and increasing customer care. Big advantage Cadillac and Rolls royce.
But it’s not just a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical results are proprietary individuals independents claim the information should be around to anybody that owns or fixes that make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777