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 also 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 getting 100,000 mile warranty so that you can the independent will get little chance to handle 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 the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such as being a loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in hard work to keep lets start work on the dealers since customers now expect this service.
Furthermore dealers regarding example Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.
But it’s not just competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won together with dealers: the dealers constantly competed for skilled labor and will have become a lot aggressive. With fewer conserve entering automobile repair profession and opting instead for careers such as health and technology, fundamental talent pool of the most skilled auto technicians is shrinking.
Increasingly around the globe becoming harder for independents to utilize and retain these highly skilled employees. Being an automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are picking up the best ‘mechanics’ or as might known today, ‘technicians.’ Top-notch end dealer technician actually make $100,000 one year with benefits while a self-employed shop owner would ought to gross during a $1,000,000 twelve months to make that and have to afford their own benefits and social security.
Because the hands down economic realities many independent owners are now closing their shops on and on to be employed by GM, Nissan and other dealers.
This puts the independent auto mechanic at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related rrssues.
Additionally, in the event the diagnosis is intended and a part of needs replacing the dealer will are in stock, not only verifying the verification but greatly speeding within the repair along with increasing client satisfaction. Big advantage Cadillac and Rolls royce.
But the goal wasn’t a skilled employee conflict. 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 equipment.
The manufacturers claim their technical results are proprietary in terms of independents claim the information should be available to anybody that 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 21, 2019