Capricorn, Australasia’s largest automotive parts and business essentials cooperative, has released their 2021 State of the Nation report, a detailed snapshot into the automotive service industry.

Last year, the report offered valuable information on the days immediately preceding the COVID-19 pandemic. This year’s report, by comparison, presents an opportunity to assess how well the industry has coped so far.

Over 2,000 Capricorn member businesses participated in the survey, from a wide range of automotive sectors. Respondents included general automotive repairers, commercial and heavy-duty vehicle specialists, auto electricians and collision repairers among others.

The 2021 report outcome was generally positive, with Capricorn Group CEO David Fraser expressing confidence about the industry’s future.

“On average, profits are up – thanks in part to the public’s increased reliance on cars and a car parc that’s grown by several hundred thousand vehicles. We’re still feeling confident about the future of both our businesses and the industry, and we’re making good progress in several of the areas highlighted in last year’s report.”

“That said, there are several places many members are leaving money on the table. And we still face some big challenges – including changing technology, managing to take time off and shortages in skilled labour and spare parts.”

One of the main issues considered in the detailed 40-page report is how Australian automotive repairers are improving the efficiency of their business through the tracking software and diagnostic technology.

Tracking efficiency is important in accurately estimating, quoting, and charging for a service and repairs, thus impacting business profitability.

Currently, two of five participants using software to measure and track their operational efficiency, a nine per cent increase from 2020. 26 per cent of respondents are also updating their diagnostic equipment every six months to ensure they remain up-to-date with the vast number of makes/models being delivered.

Further to this, 61 per cent of respondents already plan to improve their business efficiency and growth across the next 12 months.

Bradley Cannon, Capricorn CEO of Automotive said, “It’s great to see Members looking ahead and thinking long term in the running of their business, including all of the value that’s tied up in the business they’ve built – that is absolutely the right mindset.”

While these business developments are very positive, the report outlines that less than half (37 per cent) of automotive businesses are not currently factoring in fees for the time taken to diagnose problems.

“Given the need to reinvest in diagnostic equipment every 16 months or so, all Members should be considering the costs of charging for diagnostics when determining their charges. The message is if you’re not, you’re at risk of not covering your costs,” Mr Fraser stated.

This detailed industry report provides information and recommendations that have been developed from the contributions of Capricorn member businesses across the entire automotive service industry.

“The Capricorn State of the Nation 2021 Report is a resource that will guide us towards a more successful future. It’s another way that we are all stronger together.”

Read the full report here

Source: Capricorn | Capricorn State of the Nation Report Outlines Significant Automotive Business Improvements

23 August 2021