A strong representative group of over 2,000 Capricorn Members from Australia and New Zealand took part in this report, which provides up to date industry information from which all automotive service and repair business owners and operators can benefit.
Investment in automotive diagnostic technology tools in line with the advanced electronic sophistication of today’s cars is one issue addressed in the report which is bound to be an important consideration for industry participants wanting to grow and improve their businesses in the coming years.
One of the issues considered in this detailed 40 page Capricorn State of the Nation 2021 report, is how Australian and New Zealand automotive repairers are improving the efficiency of their business through tracking software and diagnostic technology.
37% of Capricorn Members are now always charging a fee for the time taken to diagnose problems, which represents a four percentage point increase since the inaugural Capricorn State of the Nation Report was conducted in 2020.
Two out of five Capricorn Members are also now using software to measure and track their operational efficiency, representing a nine percentage point increase from 2020. Tracking efficiency is important in accurately estimating, quoting and charging for service and repairs and can therefore have an impact on business profitability.
While these business developments are very positive, this report clearly outlines that the majority of respondents are not currently factoring in fees for diagnostic scanning or using tools to track efficiencies. The report also found that Australian Capricorn Members were more than twice as likely to use business tracking and efficiency software compared to their trans-Tasman counterparts. However, the report also found that 61% of Capricorn Members plan to improve their business efficiency and growth across the next 12 months.
26% of Capricorn State of the Nation 2021 report respondents are updating their diagnostic equipment every six months to ensure that they remain up to date with the vast number of makes and models being driven on Australian and New Zealand’s roads. This growing level of commitment represents ongoing investments by Capricorn Members towards the current and future success of their automotive service and repair businesses.
According to Bradley Gannon, Capricorn CEO of Automotive, “It is 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.”
Capricorn Group CEO David Fraser reiterated these sentiments following the completion of the Capricorn State of the Nation 2021 Report.
“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 here is if you’re not, you’re at risk of not covering your costs,” Mr Fraser stated.
“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,” Mr Fraser added.
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. Respondents included general automotive repairers, commercial and heavy duty vehicle specialists, auto electricians and collision repairers.
The Capricorn State of the Nation 2021 report provides solid information for business development, being one the most current snapshots of the total Australian and New Zealand automotive service industry.
This report is freely available to the Australian and New Zealand automotive trade (including non-Capricorn Members) and can be downloaded online at capricorn.coop/SoN