If you see fewer auto repair shops near 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 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 the latest 100,000 mile warranty which means that the independent will get little chance to handle 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 looking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such to be a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep up with 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 naturally worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have always competed for skilled labor and now have become even more aggressive. With fewer folks entering business repair profession and opting instead for careers such as health and technology, overall talent pool of the superior skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to hire and retain these highly skilled employees. A great automotive technician, would you rather improve Audi or Joe’s House?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ A top end dealer technician actually make $100,000 yearly with benefits while an independent shop owner would have to gross during a $1,000,000 1 yr to make that and still have to pay for their own benefits and social equity.
Because of this economic realities many independent owners are usually closing their shops on and on to work with GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis is made and a portion needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding inside the repair period and increasing customer care. Big advantage Cadillac and Rolls royce.
But it is not just 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 that their technical data is proprietary while independents claim the information should be around to anybody that owns or fixes build of motor.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777
https://g.page/excel-auto-repair-sales
Posted on:
August 24, 2019