If you see fewer auto repair shops towards 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 and also 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 ten or fifteen years. Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.
Many manufacturers offer at least one 100,000 mile warranty so that you can the independent will get little chance to work with 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 the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such to be a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in an effort to keep on top of 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 to be able to independent repair shop prices.
But it’s but not just competitive pricing naturally worrying the independents.
The battle for skilled labor all means being won together with dealers: the dealers often competed for skilled labor and already have got become significantly more aggressive. With fewer young people entering the auto repair profession and opting instead for careers like health and technology, fundamental talent pool of the top skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to utilize and retain these highly skilled employees. Regarding automotive technician, would you rather appeal to Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician earns $100,000 a year with benefits while wages shop owner would ought to gross over a $1,000,000 one year to make that and still have to reimburse their own benefits and social protective measures.
Because of this economic realities many independent owners are at this moment closing their shops and going to be suitable for GM, Nissan and other dealers.
This puts the independent auto repair center at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.
Additionally, is not diagnosis created from and a portion needs replacing the dealer will purchase it in stock, not only verifying the diagnosis but greatly speeding increase the repair and also increasing client satisfaction. Big advantage Cadillac and Bmw.
But it’s not only a skilled employee showdown. Techs cannot fix cars without information and you will find a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim their technical results are proprietary in terms of independents claim the information should be around to anybody that owns or fixes help to make of car.
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