If you see fewer auto repair shops in your community 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 may be 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 getting 100,000 mile warranty meaning that the independent will get little chance to work on 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 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 trying to keep plan 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 to be able to independent repair shop prices.
But it’s simply competitive pricing that is worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have been competed for skilled labor and now have become a lot aggressive. With fewer individuals entering business repair profession and opting instead for careers like health and technology, the total talent pool of the top skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to work with and retain these competent employees. As an automotive technician, would you rather are employed by Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician can make $100,000 a year with benefits while an independent shop owner would must gross over a $1,000,000 twelve months to make that and get to purchase their own benefits and social security.
Because in the economic realities many independent owners are currently closing their shops and going to be employed by 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, any time a diagnosis created from and an area needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding in the repair as well as increasing service delivery. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee showdown. Techs cannot fix cars without information and you’ll find a long and ongoing dispute between 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 for sale to anybody that owns or fixes create of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777