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 economic.
The global problem will 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 first 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 up the difference.
Additionally many dealers such as Porsche and Saab in order to adding other value added benefits such 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 lets start work on the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices similar to independent repair shop prices.
But it’s not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers generally competed for skilled labor and already have got become significantly more aggressive. With fewer folks entering business repair profession and opting instead for careers such as health and technology, essential talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly around the globe becoming tougher for independents to rent and retain these highly skilled employees. The automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 a whole year with benefits while a self-employed shop owner would ought to gross within the $1,000,000 a year to make that and get to afford their own benefits and social security.
Because of this economic realities many independent owners are currently closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, is not diagnosis appeared and a part needs replacing the dealer will have it in stock, not only verifying the verification but greatly speeding inside the repair period and increasing service delivery. Big advantage Cadillac and Mercedes.
But the goal wasn’t a skilled employee world war. Techs cannot fix cars without information and there’s a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical facts are proprietary while independents claim the information should be available to anyone who owns or fixes help to make of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777