Page 22 - Australasian Paint & Panel Nov-Dec 2022

Market Intelligence
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PAINT&PANEL NOVEMBER / DECEMBER 2022 WWW.PAINTANDPANEL.COM.AU
Repair wait times will return to nor- mal, at around two weeks, between now and Christmas ‘23 as heavy hits are priced out of the market thanks to inflation. Technician wages of 150k will be close to the new normal.
Parts supply will return to normal by Christmas. The "just in time" sup- ply chain will need a re-think. OEM's will need to hold larger stock levels to cater for supply.
MSO's will grow exponentially and in two to three years time will start to cannibalise each other again. Dealer- ship repair facilities will become com- monplace as they were between the 1950's and 70's.
Third party work will flourish and probably push past 1 billion annually. This may force insurers to the table to consider a more equitable claims han- dling solution. Local insurers will face increased pressure from overseas play- ers and OEM insurance. Expect premi- ums to lift by 20-30% over the next 18 months.
Apprentice numbers will increase as mini academies — like the ones AMA, Fortress now have — expand. Howev- er, no amount of increase will buffer the decline at the top as boomers drop out the top in big numbers.
Paint manufacturers will be in a
more crowded market as new entrants take up opportunities. Car-Craft will grow exponentially. I'd expect them to have 250 members by Christmas, Fix Auto will have linear growth and Crash- zone will continue to add its 40-60 users per month.
GLENN
O’DONNELL,
MANAGER
NORTHSHORE
BMW BODYSHOP
The master and servant relationship between insurer and repairer has cre- ated the landscape we are in now. Cars are being fixed below cost. The insur- ers have created a situation that they can’t fix. Compare it to aircraft re- pairs, how would people feel about fly- ing if the same standards applied?
There will be some point next year where the government will step in after the realisation that this industry can’t regulate itself. The fixed cost repair models will have to go as they have al- most gone in America.
Regulation is on the Government’s agenda because in the present system it is unfair to the repairer and vitally to the consumer who is the loser.
The race to the bottom is over. The trade has lost many good people as a result of the insurers trying to outdo each other and achieve their holy grail, the cheapest premium.
STAVROS
YALLOURIDIS,
CEO MTA, NSW
“The government will realise that the transi- tion to 89% of new ve-
hicles sold by 2030 being electric vehi- cles is more complex than anticipated and the rollout will take much longer than expected.
“The skills shortage will deepen so employers will seek new and innova- tive ways to attract and retain talent.
“Global supply chains will continue to be disrupted impacting delivery times of new vehicles. The used car market will continue to recalibrate.
“Regulation and licensing of electric vehicle maintenance and repair will be a hotly debated topic and there will be a significant surge in registrations for EV safety, repair, and maintenance training.”
“Green hydrogen will become a seri- ous topic of discussion in the Austral- ian market.”