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 along with 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 some sort of 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 have gone down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such to be a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in trying to keep plan 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 comparable to independent repair shop prices.
But it’s simply competitive pricing is actually not worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers generally competed for skilled labor and will have become a great deal more aggressive. With fewer young people entering significantly repair profession and opting instead for careers such as health and technology, overall talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to hire and retain these highly skilled employees. A great automotive technician, would you rather work in Audi or Joe’s Drive way?
The dealers are taking the best ‘mechanics’ or as may well known today, ‘technicians.’ A top end dealer technician earns $100,000 a whole year with benefits while a self-employed shop owner would have to gross a lot more $1,000,000 one year to make that as well as have to afford their own benefits and social protective measures.
Because of this economic realities many independent owners are at this moment closing their shops and going 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, any time a diagnosis created from and a portion needs replacing the dealer will buy it in stock, not only verifying diagnosing but greatly speeding within the repair time and increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee struggle. Techs cannot fix cars without information and there has been a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical facts are proprietary while independents claim the information should build up to anyone who owns or fixes help to make of car.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777