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 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 which means that the independent will get little chance to work with that car for the first 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 inside the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such to be a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in trying to keep 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 similar to independent repair shop prices.
But it’s simply competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers often competed for skilled labor and will have become significantly aggressive. With fewer young people entering the auto repair profession and opting instead for careers such as health and technology, essential talent pool of the superior skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents you ought to hire and retain these competent employees. Being an automotive technician, would you rather work in Audi or Joe’s Drive way?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician earns $100,000 twelve months with benefits while a self-employed shop owner would require gross a lot more $1,000,000 twelve months to make that and still have to purchase their own benefits and social protective measures.
Because the hands down economic realities many independent owners are at this moment closing their shops all night to be suitable for 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 injuries.
Additionally, in the event the diagnosis is intended and a part needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding increase the repair along with increasing service delivery. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee conflict. Techs cannot fix cars without information and you will find a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic equipment.
The manufacturers claim their technical results are proprietary while independents claim the information should be for sale to anyone who owns or fixes build of motor.
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Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536