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 could 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 with 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 in the difference.
Additionally many dealers such as Porsche and Saab happen to adding other value added benefits such as a loaner car while repairs are being made. Independents are usually now being forced to give courtesy rides to customers in hard work to keep up with 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 as well as competitive pricing that is worrying the independents.
The battle for skilled labor is also being won using the dealers: the dealers have been competed for skilled labor and now have become significantly aggressive. With fewer individuals entering the auto repair profession and opting instead for careers like health and technology, fundamental talent pool of methods to use skilled auto technicians is shrinking.
Increasingly is certainly becoming harder for independents to hire and retain these highly skilled employees. A great automotive technician, would you rather are employed by Audi or Joe’s Garage?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ An increased end dealer technician may well $100,000 one year with benefits while wages shop owner would ought to gross over a $1,000,000 1 yr to make that and have absolutely to obtain their own benefits and social equity.
Because of this economic realities many independent owners are usually closing their shops all night to work for 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 rrssues.
Additionally, in the event the diagnosis is made and a portion needs replacing the dealer will purchase it in stock, not only verifying diagnosing but greatly speeding within the repair time and increasing customer support. Big advantage Cadillac and Mercedes.
But it’s not only a skilled employee struggle. Techs cannot fix cars without information and love a long and ongoing dispute from the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim their technical information is proprietary while independents claim the information should accumulate 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 21, 2019