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 also the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of economic.
The global problem is 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 so that you can the independent will get little chance to handle that car for their early 5-10 years it is owned.
As new car sales margins go down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other useful benefits such as being a loaner car while repairs are being made. Independents are increasingly being 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 similar 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 together with dealers: the dealers have been competed for skilled labor and will have become significantly more aggressive. With fewer right now entering significantly repair profession and opting instead for careers like health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming harder for independents to work with and retain these competent employees. A great automotive technician, would you rather work for 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 earns $100,000 a whole year with benefits while a self-employed shop owner would must gross during a $1,000,000 twelve months to make that and get to pay for their own benefits and social protective measures.
Because of this economic realities many independent owners are now closing their shops and going to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, if a diagnosis is comprised and a part of needs replacing the dealer will purchase it in stock, not only verifying the verification 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 conflict. Techs cannot fix cars without information and love a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim that the technical details are proprietary individuals independents claim the information should be for sale to anyone who owns or fixes that make of automobile.
Excel Auto Repair & Sales
94 E Falmouth Hwy, East Falmouth, MA 02536
(508) 444-2777