If you see fewer auto repair shops in your town 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 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 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 relating to this the independent will get little chance to improve that car for the most important 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 value added benefits such as being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat to keep on top of 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 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 using the dealers: the dealers often competed for skilled labor and now have become significantly more aggressive. With fewer individuals entering business repair profession and opting instead for careers with regard to health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to rent and retain these highly skilled employees. Being an automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician can make $100,000 one year with benefits while a private shop owner would require gross over a $1,000,000 twelve months to make that and still have to afford their own benefits and social security.
Because of these economic realities many independent owners are now closing their shops and going to enhance 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 problems.
Additionally, each time a diagnosis is intended and a part of needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding inside the repair as well as increasing customer care. Big advantage Cadillac and Bmw.
But it is not just a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical facts are proprietary while independents claim the information should accumulate to anyone that owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777