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 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 some sort of 100,000 mile warranty relating to this the independent will get little chance to improve 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 the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a shot to keep plan 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 comparable to independent repair shop prices.
But it’s and not just competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers often competed for skilled labor and already have got become even more aggressive. With fewer right now entering the auto repair profession and opting instead for careers with regard to health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly appeared becoming tougher for independents you ought to hire and retain these competent employees. As an automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are collecting the best ‘mechanics’ or as they are known today, ‘technicians.’ An excellent end dealer technician can make $100,000 yearly with benefits while wages shop owner would to be able to gross within the $1,000,000 every year to make that and have absolutely to afford their own benefits and social protective measures.
Because the hands down economic realities many independent owners are usually closing their shops all night to work with 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 problems.
Additionally, each time a diagnosis is comprised and an area needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding up the repair period and increasing service delivery. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and you’ll find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical data is proprietary while the independents claim the information should be around to anybody that owns or fixes create 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 21, 2019