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 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 the latest 100,000 mile warranty so that you can the independent will get little chance to work with 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 in order to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such as the loaner car while repairs are being made. Independents are increasingly being 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 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 but not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers constantly competed for skilled labor and will have become significantly aggressive. With fewer individuals entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of physical exercise skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to work with and retain these highly skilled employees. A great automotive technician, would you rather work for Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ A top end dealer technician actually make $100,000 twelve months with benefits while a private shop owner would have to gross within the $1,000,000 one year to make that as well as have to purchase their own benefits and social equity.
Because of this economic realities many independent owners are now closing their shops all night to work with 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 injuries.
Additionally, in the event the diagnosis appeared and a part needs replacing the dealer will buy it in stock, not only verifying the diagnosis but greatly speeding up the repair as well as increasing customer satisfaction. Big advantage Cadillac and Bmw.
But it’s not just a skilled employee 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 solutions.
The manufacturers claim their technical facts are proprietary everybody is making independents claim the information should be around to anyone that owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777