If you see fewer auto repair shops near 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 along with the ‘backyarders’ creating shrinking margins and putting many auto repair independents out of business.
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 kind 100,000 mile warranty meaning that the independent will get little chance to work with that car for the most important 5-10 years it is owned.
As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make in the difference.
Additionally many dealers such as Porsche and Saab already been adding other useful benefits such as the loaner car while repairs are being made. Independents are increasingly being forced to give courtesy rides to customers in hard work to keep with the dealers since customers now expect this service.
Furthermore dealers such as 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 not just competitive pricing that’s the worrying the independents.
The battle for skilled labor may also be won by the dealers: the dealers generally competed for skilled labor and may have become significantly more aggressive. With fewer young people entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of the most skilled auto technicians is shrinking.
Increasingly it becoming more difficult for independents to utilize and retain these highly skilled employees. As an automotive technician, would you rather improve Audi or Joe’s Shed?
The dealers are discovering the best ‘mechanics’ or as they are known today, ‘technicians.’ An excellent end dealer technician may well make $100,000 a whole year with benefits while an unbiased shop owner would to be able to gross within the $1,000,000 one year to make that and get to purchase their own benefits and social security.
Because of these economic realities many independent owners are now closing their shops and going to work with GM, Nissan and other dealers.
This puts the independent auto mechanic shop at a definite disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related crises.
Additionally, if a diagnosis is intended and a part needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding up the repair along with increasing customer satisfaction. Big advantage Cadillac and Rolls royce.
But it is not just a skilled employee conflict. Techs cannot fix cars without information and there has been a long and ongoing dispute with the dealers/manufacturers and independents over technical information access and diagnostic solutions.
The manufacturers claim that their technical data is proprietary individuals independents claim the information should build up 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