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 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 ten or fifteen 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 meaning that the independent will get little chance to work on that car for the first 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 up the difference.
Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as a loaner car while repairs are being made. Independents are now being forced to give courtesy rides to customers in an effort to keep up 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 comparable to independent repair shop prices.
But it's not just competitive pricing that is worrying the independents.
The battle for skilled labor is also being won by the dealers: the dealers have always competed for skilled labor and now have become even 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 top skilled auto technicians is shrinking.
Increasingly it is becoming harder for independents to hire and retain these highly skilled employees. As an automotive technician, would you rather work for Audi or Joe's Garage?
The dealers are picking up the best 'mechanics' or as they are known today, 'technicians.' A top end dealer technician can make $100,000 a year with benefits while an independent shop owner would have to gross over a $1,000,000 a year to make that and still have to pay for their own benefits and social security.
Because of these economic realities many independent owners are now closing their shops and going to work for GM, Nissan and other dealers.
This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.honda financial services customer service