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 as well as 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 at least one 100,000 mile warranty meaning that 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 go down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as the loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in a shot to keep lets start work on 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 but not just competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won from dealers: the dealers constantly competed for skilled labor and now have become significantly more aggressive. With fewer individuals entering the auto repair profession and opting instead for careers like health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to rent and retain these competent employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as may well known today, ‘technicians.’ An increased end dealer technician actually make $100,000 a whole year with benefits while wages shop owner would have to gross within the $1,000,000 one year to make that and get to pay for their own benefits and social security.
Because in the economic realities many independent owners are at this moment closing their shops on and on to be employed by 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 rrssues.
Additionally, if a diagnosis appeared and a part needs replacing the dealer will purchase it in stock, not only verifying the verification but greatly speeding increase the repair period and increasing customer care. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and there’s a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical information is proprietary while the independents claim the information should build up to anybody that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777