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 and 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 the latest 100,000 mile warranty meaning that the independent will get little chance to work on 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 looking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such being 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 on top of the dealers since customers now expect this service.
Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s but not just competitive pricing is actually worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers constantly competed for skilled labor and now have become a great deal more aggressive. With fewer conserve entering the auto repair profession and opting instead for careers with regard to health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to rent and retain these competent employees. As an automotive technician, would you rather improve Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as they may be known today, ‘technicians.’ A top end dealer technician may well $100,000 twelve months with benefits while an unbiased shop owner would have to gross over a $1,000,000 one year to make that and have to purchase their own benefits and social protective measures.
Because of these economic realities many independent owners are usually closing their shops all night to enhance GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, in the event the diagnosis is intended and a fraction needs replacing the dealer will buy it in stock, not only verifying the verification but greatly speeding in the repair and also increasing customer satisfaction. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee world 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 solutions.
The manufacturers claim their technical data is proprietary individuals independents claim the information should be available to anyone that owns or fixes that make 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