Page 27 - Australasian Paint & Panel Jan-Feb 2023

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MSO UPDATE
MULTI-SITE OPERATORS CONTINUE TO GROW AND NEW ONES ARE SPRINGING UP. SAM STREET CAUGHT UP WITH THE MAJOR PLAYERS TO FIND OUT WHERE THEY ARE HEADING THIS YEAR.
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OW THAT LOCKDOWNS ARE
hopefully a thing of the past, it’s business as usual for the multi-site operators (MSOs). If you are an independent, single-site operator you have to keep a beady eye on the MSOs and ensure you have a plan if one or more opens up near your patch. You won’t be able to compete on price or possibly turn around times and we know that insurers prefer to deal with MSOs for a number of reasons. We asked George Manos, IAG manager Industry Risk & Governance to outline the reason. “IAG has a long history of working with and building relationships with progressive repairers regardless of whether they are single or multi facility operators. MSOs are an important part
of IAG’s overall repair network.
“MSO’s provide the opportunity to manage larger volumes of repairs consistently across multiple facilities within specific catchments, resulting in great outcomes for our customers. Investment in the latest technology in conjunction with lean processes and overall repair practices allow our customers to be back in their vehicles as soon as possible, while meeting our
high quality repair standards.
“The MSO’s we partner with have
modern and well equipped facilities, robust quality assurance programs, meet regulatory requirements for WHS and consider their environmental footprint when establishing sites.
“A compelling attraction to these relationships is the opportunity for all parties to think differently on a variety of repair processes and insurer models, leading to innovative approaches and optimising the outcomes for all parties involved, most importantly to provide the best possible experience for our customers,” he said.
The MSOs mainly work for the larger
insurers so there’s still plenty of work around. Diversifying your services, specialising and ensuring your eggs are distributed in more than one basket are essential ‘survive and thrive’ strategies.
The pandemic pushed a great big pause button on acquisitions and, because there hasn’t been that much action in that space, the market is ripe. Once again there will be a fresh crop of business owners looking to retire or exit the industry and if the business is in the right location and meets the MSOs requirements there are likely plenty of buyers now. While the trend to construct large, purpose built facilities continues there will always be a demand for existing business and importantly their staff.
CARe is one of the new kids on the block and though at the time of writing only lists two sites in Victoria on its website it is in the process of setting up more. We’ll be talking to them later in the year. Drive hasn’t quite broken cover yet but we understand has two shops,
one in WA and one in ACT. There will no doubt be other players both domestic and foreign looking to get in on the action as consolidation in the Australian market is in its infancy compared with other countries.
The long established Western General Motor Bodyworks has 10 sites in three states and is building a new shop in Geelong, Victoria. Owner Danny Buzadzic is looking to take the group to the next level either by selling it to a larger concern or by attracting investment in order to grow.
In terms of smaller MSOs (under 10 sites) Victoria seems to have the most but there are a few clusters in Queensland and New South Wales that are quietly adding a shop here and there, mainly at the behest of their insurance partners.
We asked our featured MSOs how the last 12 months has been for them and what their plans are for 2023 as well as how they are faring with the skills shortage.