Page 39 - Australasian Paint & Panel Magazine Sep-Oct 2018

IBIS GLOBAL FOCUS UK
would seem that most now put vehicle manufacturers in the driving seat, yet many OEMs appear to be slow in capitalising on that potentially strengthened position on the market.
The other notable development is Brexit, which remains conspicuously in a state of non-development. or now, it remains a case of business as usual.
MARKET TRENDS
The UK market continues to experience evolution from every angle. Consolidation has slowed however there have been significant moves with ECP/LKQ entering the Irish market via acquisition of Team PR Reilly and Karkraft (NI) Ltd and Canadian-based Uni Select’s acquisition of the Parts Alliance giving it, ‘Entry into European market with a leadership position in the UK’.
What has been witnessed is the continued vertical integration of business operations most notably with Vizion Network’s acquisition of bodyshop management system provider, Autoflow while estimating platform provider Audatex has recently launched its own bodyshop management system in the form of PlanManager.
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Within the market itself there is an increasing focus on bridging the skills gap with various initiatives underway to retain and attract skilled personnel within the sector. Industry charity, AutoRaise continues to pave the way and has gained support from all corners of the industry in making the industry more visible to young people with showcase events across the country. Other initiatives have seen engagement with organisations such as Save Our Soldier – with the aim to redistribute the skillsets of those leaving the armed forces.
At a more operational level, a focus on efficiency improvements remains core to the industry with contractually agreed KPIs such as overall cycle times and key-to-key times being a major driving force in the work partner/ repairer relationship. A result of this has also contributed towards the growing trend in market segmentation by which different repair models cater for different repair processes/customer requirements.
We are now in a market increasingly divided into focused operations such as ‘volume’ repair facilities; independent, VM approved, specialists; fast track facilities; semi-static operations ie ‘bodyshops in a box’ catering for quick repairs; and mobile operations providing smart repair.
Other areas such as vehicle technology, and more latterly the General Data Protection Regulations (GDPR) have dominated the attention within the industry.
SPECIFIC BODYSHOP TRENDS
The UK is a market with multiple business models in operation from the national, wholly owned network operation of Nationwide Accident Repair Services (NARS) to ‘man in a van’ mobile smart repairers. NARS itself offers multiple business - circa 122 repair centres, 80 mobile repair units, 22 rapid solutions and 50 Motorglass Solutions plus the heart of the entire operation – Network Services – which ensures claims are triaged to the correct solution. It is also now rolling out its Hi-Tech vehicle manufacturer approved facility with 12 sites in operation.
Fix Auto UK’s franchise model continues to evolve and develop now with around 100 sites and regularl strategic developments within the business. Its Fix & Go fast throughput model continues to grow as franchises look to capitalise on the strength of the brand and increasingly current franchise operators are expanding their portfolios with multiple sites.
Regional groups continue to gradually expand their footprints across the country with the likes of Gemini ARC (22 sites), Apollo Motor Group, Alton Cars Group, Balgores and L&I Eaton leading the charge with site numbers in double figures.
In contrast to this, there are some very strong single, independent sites which have based their business models on relationships with vehicle manufacturers and these businesses are now starting to reap the rewards as industry relationships evolve. The major challenge is maintaining the required level of investment but it would appear that those keenly focused, are really using it as their USP.
Other major influencers within the bodyshop market are ‘work providers’ Vizion Network Ltd which has over 750 repairers now providing capacity under its banner; Enterprise Rent-A-Car which is supported by over 350 repairers; and National Accident Repair Group with its 300 plus affiliated repair operations.
September / October 2018 PAINT&PANEL 39