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 and also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem is 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 in order to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in trying to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers with regard to Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s as well as competitive pricing naturally worrying the independents.
The battle for skilled labor is also being won through dealers: the dealers have been competed for skilled labor and already have become a lot aggressive. With fewer conserve entering effect on repair profession and opting instead for careers regarding example health and technology, overall talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to rent and retain these competent employees. Regarding automotive technician, would you rather are employed by Audi or Joe’s Rummage?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician may well $100,000 one year with benefits while a self-employed shop owner would have to gross over a $1,000,000 twelve months to make that as well as have to pay for their own benefits and social protective measures.
Because of these economic realities many independent owners have started closing their shops and going to be suitable for 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 health issues.
Additionally, each time a diagnosis is intended and an area needs replacing the dealer will buy it in stock, not only verifying the identification but greatly speeding inside the repair time and increasing customer support. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee showdown. 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 tools.
The manufacturers claim their technical data is proprietary while independents claim the information should be available to anybody that owns or fixes create of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777