Who is Capricorn?
Capricorn Society was established in 1974 to support business owners in the automotive aftermarket. Now, 50 years later, Capricorn has more than 30,000 Members across Australia and New Zealand, including mechanical workshops, collision repairers and auto electricians.
Capricorn offers a range of competitive financial services products, including our flagship Capricorn Trade Account, which connects Members to more than 2,000 Preferred Suppliers. Members also have access to risk protection, exclusive industry events and our generous Capricorn Rewards Program.
We’re proud to operate by cooperative principles.
For more information, visit capricorn.coop
Welcome
I’m pleased to present Capricorn’s fifth annual State of the Nation report, looking under the hood of the automotive aftermarket industry in New Zealand.
With over 30,000 Members across Australia and New Zealand, Capricorn is uniquely positioned to share the perspective of business owners in the automotive aftermarket industry, capturing how they’re feeling about an industry that keeps millions of motor vehicles safely on our roads and in our communities.
2024 marks 50 years since Capricorn began supporting the automotive community. This year we’re proud to be launching our first exclusive New Zealand State of the Nation report and inaugural Capricorn Confidence Index for New Zealand, as part of our 50 Years Strong celebrations.
We believe the Capricorn Confidence Index is the most accurate measure of business owners’ confidence in the future of the automotive aftermarket industry in New Zealand. This year, the Index sits at 68.0 points out of 100, indicating that, despite ongoing changes in mobility, a majority of business owners remain overall optimistic about the industry’s future.
However it’s not all good news, with cost of living pressures jumping to the top of the business challenges list, followed by the ongoing skills shortage. Despite these challenges, the Capricorn Confidence Index has remained steady from 2022 to 2024, demonstrating the resilience of the industry.
Throughout the report this year, we’ve included case studies from business owners in the industry, bringing the research to life. We hope you find it interesting and insightful.
Capricorn is pleased to share our knowledge with you, but State of the Nation is not just our report; it’s a resource for anyone interested in automotive and mobility in New Zealand.
We’re so proud to be celebrating 50 Years Strong with the Capricorn community this year, and as our data shows, this amazing industry keeps moving on. Capricorn is proud to play its part in improving the lives of our community. I’m looking forward to seeing where the next 50 years take us, and the industry.
Brad Gannon CEO, Capricorn
About State of the Nation
State of the Nation provides an in‑depth understanding of the key challenges and opportunities facing business owners in the automotive aftermarket.
Capricorn has produced State of the Nation every year since 2020. In 2023, a special report focused on the skills shortage was released. This year’s report marks a return to our traditional survey, covering a wider range of topics, allowing us to track changes over time across the industry.
This year, 455 New Zealand Capricorn Members participated in the State of the Nation survey, allowing us to produce a New Zealand specific report. These respondents represent New Zealand business owners in the automotive aftermarket, including mechanical workshops, collision repairers, auto electrical and commercial businesses.
Sample Profile
Q. Including yourself, how many staff are there in your business?
84% of
99% of businesses are classified as micro or small
57% Micro (0 - 4 employees)
42% Small (5 - 19 employees)
3 average number of hoists per
Capricorn Confidence Index
Introducing the Capricorn Confidence Index
In 2020, Capricorn embarked on an ambitious project to understand business sentiment, challenges and opportunities amongst its membership. This State of the Nation snapshot quickly became a benchmark report for the automotive aftermarket industry in Australia and New Zealand.
One of the most interesting findings each year has been the level of confidence amongst our Members. Business and industry confidence is often used as an indicator of the overall condition of an industry and is a helpful tool in anticipating and preparing for future challenges.
Now four years on, with sufficient data and insight, we are very proud to launch New Zealand’s Capricorn Confidence Index.
This Index is a barometer for the health of the automotive aftermarket industry. It considers responses to three questions: confidence in the automotive industry, confidence in their own business’ future and plans for business growth. Responses are combined to calculate a single score out of 100 points, reflecting the overall business outlook of the Members. We have worked with our independent research partners and data experts, Klein Research, to develop the Index.
With nearly 500 small and medium-sized businesses in New Zealand responding to the State of the Nation survey, we believe the Capricorn Confidence Index is the most accurate measure of business owners’ confidence in the future of the automotive aftermarket.
By analysing data from previous State of the Nation surveys we can see that the metric demonstrates stability, reflecting a reliable trend in industry sentiment. This stability assures stakeholders that the index accurately reflects market dynamics, making it a trusted tool for insights into the automotive sector. This provides us with an assurance that the calculation is a sound and reliable indicator.
In 2024, the Capricorn Confidence Index for New Zealand held steady at 68.0 points, mirroring its position in 2021. This stability indicates a belief among business owners for potential for recovery and growth within the industry regardless of the current economic climate.
We are pleased to be able to publish the Index, and hope our Members, Preferred Suppliers and the wider automotive community will find this measure of confidence in our sector useful in the years to come. At Capricorn, we take great pride in working in an industry that is prepared to tackle the future, whatever it may be, with enthusiasm and optimism.
2021 2022 2024
Note: The 2023 State of the Nation was focused on the skills shortage and for this reason has been removed from the Capricorn Confidence Index. Survey responses were collected in June 2024.
Capricorn Confidence Index
Confidence in Business and Industry
New Zealand’s automotive business owners have proven to be remarkably resilient despite the turbulent conditions of recent years.
Business owners have faced significant challenges, including the impacts of the COVID pandemic, persistent staff shortages, and in 2024 inflationary pressures coupled with a cost-of-living crisis. In this context, the majority of business owners have maintained a stable outlook. This stability in confidence in their own businesses and the industry overall reflects a collective belief in the industry’s potential for recovery and growth.
Confidence in own business
Q. How confident are you in your business’s future, specifically in the next 12 - 18 months?
Confidence in automotive industry
Q. Thinking about the automotive industry overall, how confident are you in the industry’s future?
Adsett Heavy Diesel | Stephen Adsett
Adsett Heavy Diesel in Feilding, 20 km north of Palmerston North, is a heavy vehicle repair workshop that takes on all makes and models of trucks and trailers.
“When I first started we used to repair a lot of parts, re-kit a lot of valving, and things like that,” Stephen said. “But as time’s gone on, things have become so much cheaper and easier to get hold of that we don’t re-kit as much as we used to. The technology’s come such a long way, too. We’ve gone from plain mechanical and wiring to full electronic systems.”
Stephen is feeling confident in the future of his business, in part thanks to that relationship with Capricorn.
“We can buy parts for pretty much anything we need through Capricorn,” he said. “We’re getting a good discount structure compared to us buying parts on our own. It’s simple, it’s easy, it’s fast, and the support’s good. If you’ve got any worries or questions, there’s always someone there that can help you out — be it insurance, finance, or even just having a yarn with someone, really.
“Capricorn comes with you as you grow,” he said.
Highly confident in their own business’ future 44%
• Up from 46% in 2022.
• One in ten respondents had low confidence in their business’ future, with main concerns being: Cost of living pressures, including price sensitive customers Finding skilled staff (incl. apprentices).
Confidence in own business by business type
Highly confident in the future of the automotive industry
• Confidence in the industry remains steady (44% in 2024 vs 47% in 2022).
• Newer (younger) business owners are more optimistic.
*Low sample size; results are indicative for these business types.
Q. How confident are you in your business’ future, specifically in the next 12 – 18 months?
Confidence in automotive industry by business type
*Low sample size; results are indicative for these business types.
Q. Thinking about the automotive industry overall, how confident are you in the industry’s future? 53%
Warren Anderson Motors | Warren Anderson
Warren Anderson has seen almost every part of the New Zealand automotive industry in a career spanning nearly sixty years. He’s worked in garages, operated service stations, run dealerships, and owned his own workshop. He opened his current business, Warren Anderson Motors, in Palmerston North in 2008. Warren has also seen a lot of changes since he started his apprenticeship way back in 1967, and he’s justifiably proud of what he’s achieved.
“We’ve gone from basic points and plugs car models to now where probably an average car has anywhere from 10 to 32 computers in it,” Warren said.
The secret to his longevity, he said, was to meet the industry’s challenges head-on and to stay positive.
“But at the end of the day, the technology is great,” he said. “All those computers hold hands, and to be able to diagnose a fault, everyone has to keep on top of it. I’ve got to be able to support the boys, so I try to keep myself pretty sharp as far as being able to diagnose things and give them the right directions.
“The business — the trade itself — has changed so much. It just keeps growing. Now we’re on to EVs and hybrid cars
Business Growth Findings
67% of New Zealand automotive business owners intend to grow their business or improve profitability in the next 12 months.
To achieve growth, businesses plan to focus on the following key areas:
• Improving business efficiency.
• Increasing profit margins.
• Employing/upskilling staff.
Among workshop owners planning to grow their business, 55% reported feeling confident in their own business, and 47% expressed confidence in the industry. Of those who are planning to grow their business, 55% reported feeling highly confident in their business and 47% said they were highly confident in the industry.
Q. Do you have plans in place to grow your business or improve its profitability over the next 12 months?
Note: This question was not asked in 2023.
Areas to drive growth or profitability
More advertising and marketing
Upskill yourself
Win more customers
Increase the capacity of your workshop
Focus more on how to retain existing customers
Change or expand services offered (eg: EVs)
Introduce online bookings
Other (specify)
Q. What plans do you have to grow your business or improve its profitability over the next 12 months? Select all that apply.
Being in Business
Business Challenges
New Zealand workshop owners are dealing with a range of persistent challenges that have remained relatively constant over the past two years. The difficulty in finding skilled staff and maintaining a healthy work-life balance have consistently ranked among the top three concerns in our State of the Nation research.
This year, however, price-sensitive customers/cost of living pressures emerge as the number one challenge, cited by 55% of business owners. Clearly reflective of the economic conditions, this coupled with the increase in parts prices puts more pressure on business owners.
Finding good staff (including apprentices)
Having a good work/life balance or finding time to take a break/holiday
Increase in parts prices
Financial concerns (cash flow, profitability)
Balancing different parts of your role (e.g. mechanical work vs. admin)
Insurance companies determining prices
Access to technical information and diagnostics (e.g. scan tools)
Keeping staff long term
Customers wanting to supply their own parts
Shortage of parts
Keeping up with the digital age e.g. online booking, online quote s
Environmental considerations e.g. sustainable waste management
Ser vicing electric vehicles
Sourcing sustainable materials and parts
Other (specify)
Q. What are the biggest challenges that you face in running an automotive business? Select all that apply.
Capped price servicing/ long warranties from dealerships
Customers not coming back/lack of trust
Skills Shortage
State of the Nation has consistently found the skills shortage to be an ongoing problem for the automotive aftermarket. While the data shows it is less of an issue this year, it is still impacting four out of ten businesses and ranking as the second highest business challenge faced by workshops.
As businesses adapt to changing technology and changing consumer demands, it remains a challenge to find staff with the required experience and skills:
• 38% of automotive business owners say they have a resourcing issue of some type, either faced with unfilled staff positions or difficulty finding skilled staff.
• Panel and Paint businesses are more likely to report resourcing issues, with almost 6 in 10 businesses faced with unfilled staff positions or having difficulty finding skilled staff.
Q. Which of the following apply to you regarding resourcing talent?
Note: This question was not asked in 2021.
*Low sample size; results are indicative for these business types.
Q. Which of the following apply to you regarding resourcing talent?
38% of business owners have a resourcing issue of some type
10% of owners have unfilled vacancies
28% have problems finding staff with relevant skills and experience
Business Planning
Three in ten business owners in the automotive aftermarket are planning to retire in the next five years. Another 19% are planning to retire in the next 10 years.
Expected retirement
too soon to think about transition and retirement
Q. When do you expect to retire?
Of the Members planning on retiring in the next five years, half of the business owners surveyed stated that they will put their business up for sale.
Of those planning on retiring in the next five years:
Q. Do you have a transition or retirement plan in place, or are you working on one, for when it’s time for you to retire?
Q. When it’s time to retire, what is most likely to happen to your business?
Village Valley Automotive | James Candish
Capricorn Member Director NZ
When James Candish bought his workshop in Ashurst, just north-east of Palmerston North, 17 years ago, the previous owner had done very little to the business in the previous 34 years. James had a young family, left a secure job with a heavy machinery dealership, and had taken equity out of the family home to buy Village Valley Automotive. He needed the business to succeed.
“We managed to talk the previous owner into staying on a little bit longer,” James said. “It must have been about for four or five years.”
The transition gave James time to learn the ropes and become a confident business manager. He invested in and built up the business, but a few years later when he asked a business broker what Village Valley Automotive was worth, the answer was, “basically nothing”.
“The broker made it clear that if your end goal is to have your business sellable, then it should be in the best shape it can be,” James said. “So, I did a bit of work with the broker over the next few years, getting the business systemised and profitable.”
James said while he’s seen many Members simply shut up shop when they retire, a business that’s ready for sale can earn a multiplier of two and a half to three times its annual profit when sold.
James said part of sensible succession planning is having the right key team members in place and giving them a stake in the future. He’s considering buy-in options with some of his current staff.
Cost of Living
Business owners in New Zealand’s automotive aftermarket are feeling the impact of cost of living pressures, which are influencing both consumer behaviour and business operations.
Members told us customers were becoming more price sensitive compared to previous years – with this now the number one issue they face in running their businesses. Other major concerns facing automotive business owners in 2024 are the increasing prices of parts and the financial impact of all these factors on cash flow and profitability.
Quotes from business owners
“The high cost of living in NZ and the depressed economy has a knock-on effect in our industry as consumers choose food over servicing or repairing their car. Fortunately, a large portion of our work is servicing, repairing and replacing tyres on rental car fleets.”
“Business is going quite well but we are battling increased costs that continue to eat into profitability.”
Workshop owners have indicated that cost of living related business challenges have significantly increased from previous years.
55%
find price sensitive customers/cost of living pressures a challenge
43%
find increase in parts prices a challenge
Message from Mark Cooper
Capricorn Member Director VIC/TAS
The cost of living crisis has really started to bite. Demand for our services has started to drop off as customers delay their vehicle servicing to save a few pennies.
As we all know, while this might reduce workshop bookings initially, after a while the tow trucks will start appearing and our workshops will fill up with major repairs. Either way, we get the work – it just isn’t consistent. That makes managing our businesses and achieving the desired profitability a little harder.
If you’re feeling the economic squeeze, now is a good time to revisit your labour rates, charge for time spent on diagnostics and end time discounting. Make use of the technical data and support available and other industry sources to help you with those tricky diagnostic problems and turn diagnostics and fault-finding into a profit stream, not an expense.
Despite these challenges, automotive business owners still feel confident about the industry’s future. It is inspiring to see the resilience and ingenuity of workshop owners as they innovate and adapt to the changing market conditions.
Apprentices
Apprentices
Training apprentices is one long term solution to the automotive aftermarket’s ongoing skills shortage. The number of apprentices employed has considerably increased since 2022, growing from 38% of businesses employing an apprentice to 70%.
Capricorn CEO Brad Gannon says it is vital the industry continues to engage future generations and encourage interest in automotive industry careers. “Beyond this, it is important we continue to support apprentices through their journey once they are part of the community, helping them to grow, learn new skills and develop,” he said. “Apprentices are the future business owners of tomorrow and the individuals who the automotive industry will be passed on to. Training apprentices is a solid path towards securing the long-term future of our industry.”
Q. Have you ever employed an apprentice?
Rising Stars
Since 2018, the Capricorn Rising Stars Apprentice of the Year Award has recognised and rewarded outstanding early-career technicians in the automotive aftermarket.
The award honours high-performing apprentices who show initiative in the workshop, an eagerness to learn and a commitment to the automotive sector. By celebrating these apprentices, we hope to encourage more passionate and talented people to join and stay in the aftermarket.
Gabi Clift was Apprentice of the Year in 2020. She said her win showed that “anyone can succeed in this industry if they put their mind to it.”
“If you commit, put yourself out there and work hard, it will be recognised, and it will pay off,” she said. “I’m proud to now be in a position where I can encourage and hopefully inspire others to give it a go.”
Today’s apprentices are tomorrow’s business owners.
Jeremy Drabsch, Capricorn’s Rising Stars winner in 2019, has already made that journey. He started his own business in 2023. He said the prizes he won – particularly the course with Workshop Whisperer Rachael Evans – helped him progress his automotive career.
“At the time I didn’t realise how useful this understanding and information would be, but when I decided to start my own business, it ended up being very valuable to me and meant I had a really strong base from which I could build a business,” Jeremy said.
Apprentices
The intention to hire an apprentice remains consistent from 2022, with 11% of workshop owners stating they are extremely likely to hire an apprentice in the next 12 months. A further 23% reported it as very likely.
Members are highly likely to hire an apprentice in the future
Q. How likely are you to take on an apprentice in the future?
Marty’s Panel And Paint | Marty Jarrett
Marty Jarrett of Marty’s Panel and Paint Ltd has trained many apprentices over the years. His son recently finished his apprenticeship and is now the workshop’s head painter. He’s got two apprentices currently working towards their trade — one two years and one three years into their qualifications. He might be about to take on a third.
“The biggest reason we take on apprentices is because we train them to do things how we want them done,” Marty said.
His workshop specialises in motorhomes, campervans and caravans, but works on anything from boats to planes. Marty said his staff need skills in everything from rust repair to restoration.
Marty said the skills shortage was badly affecting the collision industry — he struggles to find qualified panel beaters — and it was impossible to recruit staff from other workshops. He starts new staff out as a cleaner/labourer and if they have the potential, he’ll take them on as an apprentice.
“As soon as one apprentice is finished, if we need more staff, we just take on another apprentice,” he said. “It takes a couple of years before they make us any money — it costs us money to run apprentices — but the end result is hopefully they won’t ever want to leave because of the gear they’ve got, the workshop they’ve got and the camaraderie and the culture. Our plan is to keep as many of our apprentices as possible.”
Women in Automotive
Women in Automotive
Women play a vital role in the vast majority of businesses in New Zealand’s automotive aftermarket. Around eight in ten workshops employ women, often in administration, office or retail positions.
While the number of women working “on the tools” remains low, it is steadily increasing. The data shows more women taking on technical and skilled roles. Women now make up 8% of all qualified mechanics – up from 3% in 2022 – and 16% of automotive aftermarket businesses employ female apprentices, up from 12% in 2022. Making auto careers more attractive to women diversifies and widens the pool of talent available to the industry. It is an important step towards tackling the ongoing skills shortage.
Message from Lydia Stjepanovic
Capricorn Member Director NSW/ACT
The automotive industry is a wonderful place for a woman to find a career – and that career doesn’t necessarily need to be on the workshop floor. Those who want to do an apprenticeship and work on the tools should absolutely go for that, but the automotive industry is about more than just cars. It’s about connection with people; it’s about understanding technical problems and providing a service to society. As women, we are really good at providing excellent service, and the automotive industry is an opportunity for women to find a career where they are working in a small business, learning new skills and contributing to their community.
One of the issues the industry faces is that women feel like they don’t really belong in automotive workplaces. Without the administrative team, wives or partners, our business could not be successful. So while these women may not be “on the tools” or in the workshop, these “behind the scenes” workers are crucial to the business and the industry.
It is important that we encourage women to really take on the role of being a businesswoman, and to feel empowered by that role, rather than believe they are just someone that helps in the business. I have met so many wives that have been instrumental in their husband’s business success and growth. They provide real value. These small businesses, and the industry, would be extremely different without their involvement.
With so many women feeling like they are “just helping”, rather than a key part of the business, we don’t accurately know how many women there are working in the automotive industry. It is easy to measure how many women are on the tools or in the workshop, but when it comes to office workers, wives and partners, they are often not included in
Q. Which of these roles are relevant to your business? How many women work at your business in the following roles? Including yourself, how many staff are there in your business?
Ellerslie Automotive and Tyres | Tara Robinson
In 2015, Tara Robinson went from being a customer at Ellerslie Automotive and Tyres in Auckland, to being the owner. Four years later, she left her successful career as a business consultant in the corporate world to run the workshop day-to-day.
“I just went in, boots and all,” Tara said. “My fear factor was huge.”
While Tara said she had “to learn a hell of a lot about automotive in a very short space of time”, she focused on creating a customer-centric business with an excellent culture. In the years since, the business has grown from seven staff to 12.
Tara said her experience as a woman running a workshop had been fundamentally different to a man’s experience in the same role. She said people often ask, ‘can I speak to the boss?’
“They don’t say, ‘Are you the boss?’” Tara said. “There’s an assumption that you don’t know and, interestingly, a lot of it came initially from suppliers.”
Tara said she’d been “pretty cutthroat” about working with suppliers who had the wrong attitude.
She’s a big advocate for more women finding careers in the automotive industry.
“We need the variety, we need diversity in every form because we have to reflect our customer base,” she said. “I think women’s brains tick differently and that’s useful. You can also see the men in a workshop step up their game when there’s a woman around.”
Arnel Service Centre | Heidi Arnel
Like many other husband and wife teams in the automotive industry, the work Heidi Arnel does is critical to keeping the family business running smoothly.
She and husband Tony bought their Hamilton workshop 14 years ago, when the couple returned to New Zealand from Western Australia, where Tony had worked in the oil and gas industry. They established their fledgling business, Arnel Service Centre, while raising their young family. It’s a familiar story: Tony, a mechanic, runs the workshop day to day, while Heidi does the accounts, pays the bills and the taxes, and keeps the office running smoothly.
“I stay in the back and do the admin,” Heidi said. “I created the role to suit myself while I was bringing up the kids, and I’ve learned as I’ve gone along.”
It’s a role that requires a range of skills, from accounting to HR. Heidi has a background in business administration, but said the secret to success was having experts, like accountants and lawyers, you could call on if you had questions.
It’s a job that Heidi loves.
“I love the people we have working for us,” she said. “We have amazing customers and I like working with my husband, as well.”.
Methodology
Between 4 June and 14 June 2024, Capricorn Members across Australia and New Zealand were invited to take part in an online survey.
1,895 Members completed the survey, including 1,444 in Australia and 451 in New Zealand. The results were collated and analysed by market research consultants at Klein, one of Australia’s leading market research companies. This report focuses on New Zealand Members only. The sample profile is representative of Capricorn’s membership. Capricorn is…
Our Members
Small to medium businesses in the automotive aftermarket industry, including mechanical workshops, collision repairers, auto electrical, commercial trucks, tyre and suspension and many more across Australia
Being serviced by…
30,000+ Capricorn Members
2,000+
Capricorn Preferred Suppliers
500+
Capricorn Employees
$3.73b
Member purchases through Preferred Suppliers
Our Preferred Suppliers
Giving Members access to everything they need to run
Supported by…
Connecting businesses in the industry and offering outstanding customer service, products and networking events.
Thank you for reading our State of the Nation report
For 50 years, Capricorn’s purpose has remained the same, to help our Members grow stronger businesses. We do this by providing great products and services for businesses in the automotive industry directly and
Want to know more about State of the Nation? Get in contact media@capricorn.coop
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