Dealers hit by red tape
September 2nd, 2009 by Richard Aucock
INDEPENDENT car dealers are being burdened by red tape, driving attention away from their core business.
Just what’s not needed right now, says the RMI, as trading conditions become tougher than ever.
The findings came from the RMI’s first-ever Independent Service & Repair Garage Survey.
Independent Garage Association members were polled, on all issues. And over 4 in 5 reckoned legislation compliance is an unacceptable burden.
This, in part, has led more than half to report a rise in the average job cost over the past six months; that’s why more than 45 percent of garage owners say profits will FALL this year.
Despite this, nearly half say they will still invest in equipment, with an eye on the future. More than 40 percent will put money into training, too.
RMI Director Sue Robinson said ‘the independent garage sector is going through some tough times, but there are still positive signs, and many businesses are still looking towards the future.
‘The need to invest in that future seems to be recognised, and the IGA will continue to support its members, to help them to grow their way out of the current economic situation and into success.’
The survey threw up another interesting fact; nearly two-thirds of car dealers had seen a trend towards repair, rather than preventative maintenance. Suggesting cost-cutting car owners are paying the price in the long run?
Over 55 percent also reckon the cars in their workshops are younger…
Tags: iga, legislation, red tape, RMIF
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