If you see fewer auto repair shops in your town 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 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 some sort of 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 in order to their service departments to make inside the difference.
Additionally many dealers such as Porsche and Saab are adding other useful benefits such as the loaner car while repairs are being made. Independents think you are forced to give courtesy rides to customers in a shot 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 comparable to independent repair shop prices.
But it’s as well as competitive pricing is actually worrying the independents.
The battle for skilled labor all means being won using the dealers: the dealers often competed for skilled labor and already have got become even more aggressive. With fewer conserve entering significantly repair profession and opting instead for careers with regard to health and technology, essential talent pool of methods to use skilled auto technicians is shrinking.
Increasingly it is becoming more difficult for independents to utilize and retain these competent employees. As an automotive technician, would you rather improve Audi or Joe’s Rummage?
The dealers are collecting the best ‘mechanics’ or as yet known today, ‘technicians.’ An excellent end dealer technician may well make $100,000 a year with benefits while wages shop owner would to be able to gross within the $1,000,000 1 yr to make that and have absolutely to pay for their own benefits and social safe practices.
Because the hands down economic realities many independent owners have started closing their shops all night to work with 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 health issues.
Additionally, if a diagnosis is made and a portion needs replacing the dealer will achieve it in stock, not only verifying the verification but greatly speeding within the repair time and increasing customer care. Big advantage Cadillac and Bmw.
But it isn’t just a skilled employee war. Techs cannot fix cars without information and there has been a long and ongoing dispute amongst the dealers/manufacturers and independents over technical information access and diagnostic tools.
The manufacturers claim that their technical results are proprietary everybody is making independents claim the information should accumulate to anyone 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