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 as well as 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 10 or 15 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 operate that car for the first 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are seeking to their service departments to make the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such being a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a feat to keep up with the dealers since customers now expect this service.
Furthermore dealers for example 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 but not just competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers have always competed for skilled labor and already have got become even more aggressive. With fewer young people entering automobile repair profession and opting instead for careers such as health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to hire and retain these competent employees. The automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician actually make $100,000 yearly with benefits while a private shop owner would to be able to gross within the $1,000,000 one year to make that and get to obtain their own benefits and social safe practices.
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 repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, in the event the diagnosis is intended and a fraction needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding in the repair as well as increasing service delivery. Big advantage Cadillac and Mercedes.
But it is not just a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical information is proprietary in terms of independents claim the information should accumulate to anybody that owns or fixes that make 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 23, 2019