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 could 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 relating to this the independent will get little chance to work with 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 inside the difference.
Additionally many dealers such as Porsche and Saab have been adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in an effort to keep plan the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices in order to independent repair shop prices.
But it’s simply competitive pricing is actually worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have always competed for skilled labor and will have become a great deal more aggressive. With fewer young people entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to hire and retain these highly skilled employees. Regarding automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ A top end dealer technician earns $100,000 yearly with benefits while an independent shop owner would to be able to gross within a $1,000,000 every year to make that and have to afford their own benefits and social equity.
Because in the economic realities many independent owners have started closing their shops all night to be suitable for GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, each time a diagnosis appeared and a portion needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding in the repair period and increasing client satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical facts are proprietary while independents claim the information should accumulate to anyone who owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777