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 economic.
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 operate 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 the loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in trying to keep plan the dealers since customers now expect this service.
Furthermore dealers with regard to 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 as well as competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won together with dealers: the dealers have been competed for skilled labor and will have become a lot aggressive. With fewer individuals entering significantly repair profession and opting instead for careers regarding example health and technology, essential talent pool of the most skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to rent and retain these competent employees. Regarding automotive technician, would you rather work in Audi or Joe’s House?
The dealers are taking the best ‘mechanics’ or as they may be known today, ‘technicians.’ A premier end dealer technician actually make $100,000 a year with benefits while wages shop owner would have to gross during a $1,000,000 every year to make that and get to purchase their own benefits and social protective measures.
Because in the economic realities many independent owners have started closing their shops all night to enhance 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 crises.
Additionally, is not diagnosis is intended and a fraction needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding increase the repair as well as increasing service delivery. Big advantage Cadillac and Bmw.
But the goal wasn’t a skilled employee war. Techs cannot fix cars without information and love a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical data is proprietary individuals independents claim the information should be available to anyone that owns or fixes build 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