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 and the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem could 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 relating to this the independent will get little chance to work with that car for one 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 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 shot to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers for Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s and not just competitive pricing naturally worrying the independents.
The battle for skilled labor may also be won using the dealers: the dealers often competed for skilled labor and already have got become even more aggressive. With fewer individuals entering the auto repair profession and opting instead for careers such as health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to utilize and retain these competent employees. As an automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ A top end dealer technician can make $100,000 one year with benefits while a private shop owner would to be able to gross a lot more $1,000,000 1 yr to make that and get to afford their own benefits and social protective measures.
Because the hands down economic realities many independent owners are usually closing their shops all night to work with GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, each time a diagnosis is comprised and an area needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding within the repair period and increasing service delivery. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and you will find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical facts are proprietary individuals independents claim the information should be available to anybody that owns or fixes that make of motor.
powered by Advanced iFrame free. Get the Pro version on CodeCanyon.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777