If you see fewer auto repair shops near you 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 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 meaning that 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 seeking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in trying to keep up with 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 in order to independent repair shop prices.
But it’s as well as competitive pricing that is worrying the independents.
The battle for skilled labor may also be won from dealers: the dealers often competed for skilled labor and already have become significantly more aggressive. With fewer folks entering effect on repair profession and opting instead for careers regarding example health and technology, essential talent pool of the top skilled auto technicians is shrinking.
Increasingly around the globe becoming more difficult for independents to utilize and retain these competent employees. The automotive technician, would you rather work in Audi or Joe’s Garage?
The dealers are taking the best ‘mechanics’ or as yet known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 a whole year with benefits while an independent shop owner would must gross within the $1,000,000 one year to make that and still have to reimburse their own benefits and social protective measures.
Because in the economic realities many independent owners are currently closing their shops all night to be employed by GM, Nissan and other dealers.
This puts the independent auto repair shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related health issues.
Additionally, is not diagnosis appeared and an area needs replacing the dealer will have it in stock, not only verifying the identification but greatly speeding increase the repair and also increasing customer support. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee world war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical results are proprietary in terms of independents claim the information should build up 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