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 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 10 or 15 years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer some sort of 100,000 mile warranty so that you can the independent will get little chance to work with that car for site to website 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 up the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in hard work 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 not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers constantly competed for skilled labor and will have become a great deal more aggressive. With fewer folks entering significantly repair profession and opting instead for careers such as health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to rent and retain these competent employees. The automotive technician, would you rather work in Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as they may be known today, ‘technicians.’ An excellent end dealer technician can make $100,000 twelve months with benefits while a private shop owner would require gross over a $1,000,000 twelve months to make that and have to purchase their own benefits and social equity.
Because the hands down economic realities many independent owners are now closing their shops all night to enhance GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, any time a diagnosis is intended and a part of needs replacing the dealer will have it in stock, not only verifying diagnosing but greatly speeding in the repair time and increasing service delivery. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical information is proprietary while the independents claim the information should be for sale to anyone that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777