If you see fewer auto repair shops in your area 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 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 particular person yourself the independent will get little chance to work on that car for the first 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 inside the difference.
Additionally many dealers such as Porsche and Saab already been adding other value added benefits such being a loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in trying 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 similar to independent repair shop prices.
But it’s not just competitive pricing that’s the worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have been competed for skilled labor and now have become significantly aggressive. With fewer conserve entering significantly repair profession and opting instead for careers with regard to health and technology, overall talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming tougher for independents to utilize and retain these highly skilled employees. Regarding automotive technician, would you rather work for Audi or Joe’s House?
The dealers are selecting the best ‘mechanics’ or as they are known today, ‘technicians.’ A premier end dealer technician may well $100,000 a year with benefits while a private shop owner would have to gross within a $1,000,000 every year to make that as well as have to afford their own benefits and social protective measures.
Because of these economic realities many independent owners are now closing their shops and going to work for 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 injuries.
Additionally, any time a diagnosis created from and a portion needs replacing the dealer will achieve it in stock, not only verifying the identification but greatly speeding within the repair along with increasing service delivery. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee struggle. Techs cannot fix cars without information and there’s a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic applications.
The manufacturers claim their technical information is proprietary while independents claim the information should be around to anyone that owns or fixes help to 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