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 is 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 getting 100,000 mile warranty particular person yourself the independent will get little chance to work on 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 in order to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab in order to adding other useful benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in a feat to keep plan 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 and not just competitive pricing that’s the worrying the independents.
The battle for skilled labor all means being won through dealers: the dealers constantly competed for skilled labor and may have become even more aggressive. With fewer young people entering effect on repair profession and opting instead for careers such as health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming harder for independents to hire and retain these competent employees. Regarding automotive technician, would you rather improve Audi or Joe’s House?
The dealers are collecting the best ‘mechanics’ or as might known today, ‘technicians.’ An excellent end dealer technician actually make $100,000 yearly with benefits while wages shop owner would to be able to gross over a $1,000,000 twelve months to make that and still have to pay for their own benefits and social safe practices.
Because from the economic realities many independent owners are usually closing their shops and going to be employed by 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 rrssues.
Additionally, in the event the diagnosis created from and a part of needs replacing the dealer will purchase it in stock, not only verifying the identification but greatly speeding up the repair as well as increasing customer support. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and there has been a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical results are proprietary in terms of independents claim the information should be available to anyone who owns or fixes that make of car.
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