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 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer the latest 100,000 mile warranty particular person yourself the independent will get little chance to operate 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 seeking to their service departments to make along the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such as a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a feat 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 and not just competitive pricing is actually not worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers constantly competed for skilled labor and already have got become significantly aggressive. With fewer individuals entering effect on repair profession and opting instead for careers with regard to health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents to hire and retain these highly skilled employees. The automotive technician, would you rather appeal to Audi or Joe’s House?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ A premier end dealer technician actually make $100,000 twelve months with benefits while wages shop owner would require gross over a $1,000,000 every year to make that and still have to obtain their own benefits and social safe practices.
Because in the economic realities many independent owners are usually closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto repair center at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, in the event the diagnosis appeared and a part of needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding in the repair as well as increasing service delivery. Big advantage Cadillac and Mercedes.
But it’s not just a skilled employee world war. Techs cannot fix cars without information and you will find a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical facts are proprietary in terms of independents claim the information should be around to anyone who owns or fixes build of automobile.
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