If you see fewer auto repair shops in your town 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 ten or fifteen 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat to keep lets start work on 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 for you to independent repair shop prices.
But it’s not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers often competed for skilled labor and already have become significantly aggressive. With fewer young people entering effect on repair profession and opting instead for careers such as health and technology, the total talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to utilize and retain these competent employees. A great automotive technician, would you rather work for Audi or Joe’s Rummage?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ An increased end dealer technician can make $100,000 a year with benefits while a self-employed shop owner would ought to gross during a $1,000,000 one year to make that and have to obtain their own benefits and social equity.
Because the hands down economic realities many independent owners have started closing their shops on and on 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, each time a diagnosis is comprised and a portion needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding inside the repair period and increasing customer care. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee showdown. 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 tools.
The manufacturers claim that their technical results are proprietary while independents claim the information should be for sale to anyone that owns or fixes create 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