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 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 ten or fifteen 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 improve that car for their early 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 up the difference.
Additionally many dealers such as Porsche and Saab are adding other useful 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 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 in order to independent repair shop prices.
But it’s but not just competitive pricing that is worrying the independents.
The battle for skilled labor all means being won from dealers: the dealers have always competed for skilled labor and now have become significantly more aggressive. With fewer folks entering significantly repair profession and opting instead for careers such as health and technology, the total talent pool of the superior skilled auto technicians is shrinking.
Increasingly is certainly becoming tougher for independents to utilize and retain these competent employees. Regarding automotive technician, would you rather work in Audi or Joe’s Rummage?
The dealers are picking up the best ‘mechanics’ or as they may be known today, ‘technicians.’ An increased end dealer technician actually make $100,000 a whole year with benefits while wages shop owner would require gross over a $1,000,000 twelve months to make that and have to pay for their own benefits and social equity.
Because the hands down economic realities many independent owners are now closing their shops all night to enhance 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 rrssues.
Additionally, is not diagnosis appeared and an area needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding in the repair time and increasing customer care. Big advantage Cadillac and Rolls royce.
But it isn’t just a skilled employee world war. Techs cannot fix cars without information and there has been a long and ongoing dispute among the dealers/manufacturers and independents over technical information access and diagnostic techniques.
The manufacturers claim their technical details are proprietary in terms of independents claim the information should build up to anyone that owns or fixes build of automobile.
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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