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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem will 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 the latest 100,000 mile warranty so that you can the independent will get little chance to handle that car for their early 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 already been adding other value added benefits such as a loaner car while repairs are being made. Independents are forced to give courtesy rides to customers in a shot to keep lets start work on 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 in order to independent repair shop prices.
But it’s not just competitive pricing that is worrying the independents.
The battle for skilled labor may also be won through dealers: the dealers have been competed for skilled labor and may have become a lot aggressive. With fewer right now entering automobile repair profession and opting instead for careers with regard to health and technology, overall talent pool of the most skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents you ought to hire and retain these highly skilled employees. As an automotive technician, would you rather improve Audi or Joe’s Garage?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ A premier end dealer technician actually make $100,000 yearly with benefits while a self-employed shop owner would must gross within the $1,000,000 twelve months to make that and still have to reimburse their own benefits and social security.
Because of this economic realities many independent owners are at this moment 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 injuries.
Additionally, if a diagnosis appeared and a portion needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding increase the repair as well as increasing customer satisfaction. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee world war. Techs cannot fix cars without information and love a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim that the technical data is proprietary individuals independents claim the information should be around to anyone that owns or fixes build of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777