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 as well as 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 kind 100,000 mile warranty meaning that the independent will get little chance to improve that car for their early 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are in order to their service departments to make up the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such being a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in an effort to keep up with 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 similar to independent repair shop prices.
But it’s simply competitive pricing that is worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers have been competed for skilled labor and already have become a great deal more aggressive. With fewer conserve entering automobile repair profession and opting instead for careers such as health and technology, essential talent pool of the top skilled auto technicians is shrinking.
Increasingly appeared becoming more difficult for independents you ought to hire and retain these highly skilled employees. Regarding automotive technician, would you rather work in Audi or Joe’s House?
The dealers are discovering the best ‘mechanics’ or as yet known today, ‘technicians.’ An increased end dealer technician earns $100,000 yearly with benefits while a self-employed shop owner would ought to gross over a $1,000,000 every year to make that and get to pay for their own benefits and social security.
Because from 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 mechanic shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related injuries.
Additionally, is not diagnosis is comprised and a portion needs replacing the dealer will are in stock, not only verifying diagnosing but greatly speeding within the repair and also increasing service delivery. Big advantage Cadillac and Mercedes.
But it isn’t just a skilled employee struggle. 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 techniques.
The manufacturers claim that the technical results are proprietary in terms of independents claim the information should be for sale to anybody 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 23, 2019