Ignition Magazine Australia | August 2022

AUGUST 2022 CAPRICORN

WINNER ANNOUNCED SEE PAGE 14

Stars

FUTURE RIDE MCLAREN’S HYBRID

RISING STARS WINNER ANNOUNCED CML MEMBERS TO SHARE LOYALTY REBATE Eligible Capricorn Mutual Members will share a $4 million rebate

AUTOMOTIVE APPRENTICE SURVEY RESULTS Industry is experiencing skills shortages

INVESTING IN MODERN TOOLS AND EQUIPMENT Are you purchasing the right gear?

IT’S DIFFERENT. Mutual Protection provided through Capricorn Risk Services is custom made for auto trades.

Join us!

Get the right cover for the right price.

Find out how you’re better off with Capricorn Risk Services.

1800 007 022 | info@capricornrisk.com | capricorn.coop/risk Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you.

Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).

TM

CONTENTS AUGUST 2022

David Fraser Group CEO

CEO’s message

If I asked you to characterise your last year in business in a word or a sentence, what would you say?

Perhaps it was a year of strong growth, or a year of transition, or a year of hard lessons.

Everyone’s answer would be different, but if we collated all the answers together I reckon we’d see some strong trend lines. I bet quite a few responses would relate to having trouble finding staff.

In last year’s State of the Nation 43% of Members said finding qualified staff was a challenge.

You don’t need me to tell you that not being able to find good technicians has flow-on effects throughout the business — you can’t service as many vehicles a week, you end up on the tools when you should be in the office, you lose your weekend to doing admin, and you’ve got no chance of taking a holiday.

I’m hoping 2022’s State of the Nation report will give us clearer insight into just how the skills shortage is impacting our Members and their businesses. The surveys are in, our team is collating the results, and the report will be out later this year.

I’m hoping it will show that more Members have taken on an apprentice since the 2020 and 2021 research. Last year 31% of Members said they were likely to take one on, which was up from 27% the year before. We started a big conversation about apprenticeships in last year’s report. After all, apprentices are our pipeline of talent and the long-term solution to our skills headache.

As an industry, we need to do a better job of talent recruitment and retention. We can’t just use the excuse that our staff don’t want to work hard, or that parents discourage their kids from trades, or that being a mechanic is a dirty and unattractive job, or that it doesn’t pay well enough, or that the mining industry steals all the good talent. These are self-defeating excuses that do nothing to address the fundamental problem.

5 MEMBERS TO SHARE LOYALTY REBATE

Eligible Capricorn Mutual Members will share a $4 million rebate

7 AUTOMOTIVE

APPRENTICE SURVEY RESULTS Industry is experiencing skills shortages

9 FUTURE RIDE Mclaren’s Head-Turning Hybrid

11 AMAZON’S SURVEY RESULTS EXPLAINED

Amazon’s research into where Australian’s are planning to travel.

13 MEMBER RIDE

Sprint Car Makes Dreams Come True

14 RISING

STARS WINNER ANNOUNCED

We need new ways of finding employees, of keeping employees engaged and of organising the workforce. This may require some unorthodox thinking.

16 INVESTING IN

In an industry first, the Australian Automotive Aftermarket Association, the Australian Automotive Dealer Association and the Motor Trades Association of Queensland have commissioned a comprehensive survey of automotive apprentices. Hopefully this research will provide invaluable insights so our industry, training providers and governments can make the changes needed to improve skills development, career pathways and job opportunities.

Are you purchasing the right gear?

The research has revealed that our female apprentices appear to be obtaining better outcomes in most areas than their male counterparts — and remain more committed to their career path. Almost universally, they expect to remain in the sector beyond the completion of their qualifications.

Our industry is evolving. It’s an exciting time to be in automotive. In years to come, if I’m ever asked to characterise 2022 in a word or a sentence, I hope I’m able to say it was the year the industry supercharged its pipeline of talent and welcomed a new generation of apprentices.

Yours in cooperation,

MODERN TOOLS AND EQUIPMENT

17 BUSINESS BUILDING

Positions Vacant Come And Work In My

Grotty Garage

18 WORK-LIFE BALANCE

How Caroline mapped out her future in the automotive industry

20 ONGOING

BRAND AWARENESS MARKETING David Fraser Group CEO

Why it pays to keep your business top-ofmind

All information, material and content in this edition of Ignition is provided or sourced by Capricorn Society Limited (“Capricorn”) for general information only and is not intended to be advice or comment on any particular matter or subject. Before acting on any information in this edition of Ignition you should consider the relevance of it to your own circumstances and, if necessary, take professional advice. Any opinions expressed in an Ignition article are those of the relevant individual author and do not necessarily reflect the opinions or views of Capricorn. Capricorn makes no representation or warranty as to the accuracy, completeness or reliability of any material (including without limitation, any third party authored article or supplier advertisement in respect of which Capricorn merely acts as conduit) included in this edition of Ignition. To the fullest extent permitted by law, Capricorn, its officers, employees, agents and representatives disclaim any and all liability to you or any other person for any loss or damage whatsoever connected with: i. reliance on any material in Ignition; or CAPRICORN IGNITION AUGUST 2022 3 ii. any inaccuracy, error or omission in any material in Ignition.

NEWS

CALENDAR of events South Australia

UPPER SOUTH EAST TRADESHOW 7th September 2022 MT GAMBIER TRADESHOW 8th September 2022 Ceduna Tradeshow 28th September 2022 GALA DINNER AND TRADESHOW 5th November 2022

Western Australia

GALA DINNER & TRADESHOW 29th October 2022 WA Golf Day 9th December 2022

Queensland

FUTURES COLLIDE II 19th to 20th August 2022 GALA DINNER & TRADESHOW 8th October 2022 CAIRNS TRADESHOW 16th November 2022

Victoria

GALA DINNER & TRADESHOW 12th November 2022

New South Wales

GALA DINNER & TRADESHOW 19th November 2022

Capricorn DINNER & TRADESHOW

Login to capricorn.coop today and select Events to register your attendance. For further information please call our Events team on 1800 327 437 or email events@capricorn.coop

Calling all

Member Rides

Get your ride featured! Send us an email to ignition@capricorn.coop and let us know about your project car, don't forget to send us some good quality photos too!

4 CAPRICORN IGNITION AUGUST 2022

TM

CML Members to share Loyalty Rebate after bumper year Eligible Capricorn Mutual Members will share a $4 million rebate after the business achieved strong results in financial year 2021/22.

“The floods were a whole order of magnitude larger than our previous record payout, which was for Cyclone Yasi in the summer of 2011/12,” Jim said.

It’s the second consecutive year the Mutual has been in a position to pay a Member Loyalty Rebate, after $6 million was returned to CML Members in 2020/21.

He said the strong performance was down to the “amazing support” of Members.

“The Mutual has a strong financial footing and offers a unique face-to-face service proposition that Members want to be a part of,” Jim said. “As a result, we continue to exceed even our own growth expectations and that allows us to better reward our Members.”

The Mutual, which is managed by Capricorn Risk Services (CRS), recorded almost $100 million in sales this past financial year, putting it in its strongest ever financial position.

CRS chief executive Jim Glossat said the main reason behind the Mutual’s growth had been more than 1,000 Capricorn Members joining CML in the past year pushing the total membership over 10,000. He said this growth had been faster than anticipated, and had allowed for a profitable year despite the Mutual also paying out the largest claim in its history — approximately $35 million to Members affected by the floods in Queensland and New South Wales in February and March.

The Member Loyalty Rebate will be paid in July to eligible Members in the form of Rewards Points.

Letters will be sent to eligible Members in coming weeks.

As a Mutual, CML’s constitution states that Members enjoy the benefits when the business performs well, but are never asked to contribute in the unlikely event it makes a deficit.

“We’re delighted to be able to return this benefit to Members again this year,” Jim said. “It shows, once again, that we really are stronger together.”

Rebates are discretionary and past performance is no indication of future performance.

To be eligible for a rebate, you must have been a Member with CML for at least three continuous years (as at 30 June 2022).

The rebate calculation has been designed to reward Members for staying with CML, and the longer you have been a Member the bigger the rebate you are eligible to receive.

CAPRICORN IGNITION AUGUST 2022 5

WINTE WARM R ERS

Stay warm this winter

Even though we are past winter solstice, we still have a number of cold days ahead of us. Use your Capricorn Rewards points to invest, something to keep you warm for the rest of winter such as, a new quilt or robe. Or buy yourself a new slow cooker or coffee machine so you can stay cosy on the cold nights.

Capricorn Rewards has a huge range of products to get you through the cold winter months. Check out what’s on offer at capricorn.coop/rewards.

TIVA Indoor/ Outdoor Heater

Sheridan - Deluxe Dream 2-in-1 Quilt

Dimplex 1.5kW Ceramic Heater

Beurer MG206 Shiatsu Seat Cover Beurer MG295 Shiatsu Seat Cover

Sheridan - Deluxe Dream Quilt

Oakley Airbrake XL Prizm Snow Goggle, Blade 30 Backpack & Beanie Pack

Russell Hobbs 6L Searing Slow Cooker

Caribee Safari Double Sleeping Bag 0c

Sheridan - Supersoft Luxury Unisex Towelling Robe

Regional Red Case (12 bottles) Delonghi - Nespresso Inissia Coffee Machine Black

*Products subject to availability.

capricorn.coop/rewards Participation in the Capricorn Rewards Program is subject to the Capricorn Rewards Program Terms and Conditions which can be found via the Capricorn website.

AUTOMOTIVE AUTOMOTIVE APPRENTICE APPRENTICE SURVEY SURVEY RESULTS RESULTS In an industry first, the Australian Automotive Aftermarket Association (AAAA), the Australian Automotive Dealer Association (AADA) and the Motor Trades Association of Queensland (MTA Queensland) have joined forces to address a significant industry issue.

The automotive industry is experiencing extraordinary skills shortages, so understanding the journey undertaken by apprentices is vital to support the sector into the future. Together, the AAAA, AADA and MTA Queensland commissioned ACA Research to run a comprehensive survey of automotive apprentices. The findings of this invaluable research will enable the industry, training providers and government to make the changes needed to improve skill development, career pathways and job opportunities.

While some of the findings show young apprentices consider changing careers during their apprenticeship, the vast majority have a passion for and stay in the automotive industry. This commitment is connected to their initial career drivers and vision for the future and is shown through their true love and passion for all things automotive. For policymakers there are key opportunities to design closer engagement with fourthyear apprentices to educate on options post-qualification.

Eighty-eight per cent of apprentices have a genuine interest in developing their own knowledge in the newest technologies and overwhelmingly recognise the importance of ongoing learning beyond the completion of their initial qualification.

Students identified extension learning in specialisation areas like hybrid or electric vehicles, programming and diagnostics, and driver assistance system technology, or in learning business skills to operate a workshop.

The survey provided great insight into the perspectives of women who work in the automotive industry. There have been significant improvements for women undertaking an apprenticeship, particularly as they become familiar with the

opportunities available for a long-term automotive career and the successes of other women working in the industry.

“This research shows how technicians become interested in our industry, the journey they take into our automotive workshops and why they stay. What is fantastic about the research is that it contains some very practical insights for our employers about how to find employees and how to keep them engaged in developing long-term careers and high-level skills within our industry. The skills shortage issue is complex and this research will enable us to work with industry on solutions that will be effective and enduring,” said Stuart Charity, AAAA Chief Executive Officer.

“Skills shortages are severely impacting dealerships at the moment and the outlook for the future remains grim.

Automotive apprentices are essential, but the fact is that many of them leave the trade early and don’t complete their training.

It is critical, not just for our Members’ businesses but also for our economy, that we are able to keep cars and trucks on our roads, and we need skilled and qualified tradespeople to do that. This study has given us an important insight into the apprenticeship experience which we can use to develop strategies to attract and improve retention of apprentices in the future,” said James Voortman, AADA Chief Executive Officer.

“The survey has enormous importance for policymaking, and the AAAA, AADA and MTA Queensland are committed to continuing to work together to improve the apprentice experience so that we keep our future workforce in the automotive industry and support their continuous learning journey,” said Rod Camm, MTA Queensland Group Chief Executive.To access the report, please visit https://bit.ly/Auto-Apprentice-Survey

CAPRICORN IGNITION AUGUST 2022 7

FUTURE RIDE

MCLAREN’S

HEAD-TURNING HYBRID

8 CAPRICORN IGNITION AUGUST 2022

How does a brand synonymous with motorsport respond to the promise of a future without motors?

In the case of McLaren, the company has scrapped everything and started from scratch. At least, that’s what it has done with the Artura.

Artura is the British make’s first seriesproduction high-performance hybrid — and almost every last bit of this twin-turbo V6 petrol-electric supercar represents a complete redesign from the old McLaren 12C template.

Let’s take it for a spin.

It won’t be a long spin. It can only run in pure EV mode for 31 km. But then, that’s not really the point, is it? This is still a McLaren.

At the heart of the Artura’s powertrain is that newly designed and engineered 2,993 cc twin-turbocharged V6 petrol engine, with its power output of 585 PS (nearly 200 PS per litre) and 585 Nm of torque. The engine is light, at just 160 kg (50 kg lighter than McLaren’s

V8 motor). In fact, the whole vehicle is light, at just 1,498 kg wringing wet — including an 88 kg battery pack and a 15 kg E-motor.

It’s a two-seater, with Clubsport bucket seats, but it has been designed with generous legroom and myriad features to ensure driver and passenger comfort.

It does zero to 100 kmh in three seconds, gets to 200 kmh in 8.3 seconds, and hits 300 kmh in just over 20 seconds. The top speed is 330 kmh (which, just for funsies, would do the 31 km in 5.4 minutes… but then you’d have to wait 2.5 hours while it recharged to 80% of capacity).

But the real standout here is how the Artura looks. This is one sleek machine. Clearly influenced by the past half century of McLaren design, but absolutely an up-to-the-minute supercar for 2023 and beyond. It has the classic low nose and high tail you want from a supercar, with beautiful proportions and slick lines that probably do fantastic things for the aerodynamics but, more importantly, invite the admiring eye to turn green with envy.

It’s not just the powertrain that’s all new. McLaren has completely reengineered everything from the rear suspension to the electro-hydraulic steering to the damping control. Inside, it has all the modern bells and whistles — infotainment systems, connectivity, touchscreens, track telemetry, variable drift control, advanced driver assistance systems, intelligent adaptive cruise control, lane departure warning, auto-high beam assist and roadside recognition.

When the GT4 version of the Artura made its debut at the Goodwood Festival of Speed in June, it attracted a lot of attention. This might be McLaren’s first foray into high-performance hybrids, but it is undoubtedly a stunning debut. You can pick up your own McLaren Artura from as little as A$449,500, excluding on-road costs.

CAPRICORN IGNITION AUGUST 2022 9

AMAZON’S AUSSIE ROAD TRIP RESEARCH

By Paul Marinelli

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Global ecommerce superstar company Amazon is renowned for the detailed consumer research they conduct in order to best understand global marketplaces.

Needing no introduction (but we will do it anyway), Amazon is an American multinational technology company that also focuses on cloud computing, digital streaming and artificial intelligence alongside its ecommerce fame.

Amazon is respected as one of the most influential economic and cultural forces in the world, so when it conducts research, the entire world listens. The company recently conducted its own research into the Australian motorist / road trip market, with some interesting findings.

This research study was commissioned by Amazon Australia and conducted in May 2022 by Lonergan Research, sampling 1007 Australian motorists. It found that 43% of Australians plan to travel within Australia this winter: 31% are planning a road trip, which far exceeds the 12% planning to fly domestically for their winter break. Interestingly, although 83% of Aussies love going on road trips, 39% admit to feeling stressed about the preparation required.

A welcome finding was that 84% of Australians check their cars before heading off on a long journey, with tyre pressures (58%), and oil / fluid levels (53%) being the most common checks done by Aussie motorists.

Now where all of you step in is with the finding that almost a quarter (24%) admit they don’t do basic car maintenance tasks themselves, with more than two in five (44%) going to their local garage or mechanic when needing basic car parts, with some 11% spending more than $900 a year on basic car repairs.

Other findings from the research included that parents of children are more than four times as likely to be planning a road trip (43%) than to fly domestically over winter (10%).

Responsibility comes to the fore with the Amazon research finding that parents are also spending $74.10 more than average on basic vehicle repairs and services ($518.20 against an average of $444.10).

Considering the latest Australian Census data, millennials have now overtaken baby boomers as a percentage of the overall population and they also out-spend their older counterparts on basic car repairs and services according to the Amazon study (millennials – $491; gen Z – $458; gen X – $430; baby boomers – $405). So this is definitely the age group for automotive service and repair professionals to target.

In terms of the stress that comes with road trips, baby boomers are the least likely to feel stressed when preparing for a road trip at just 27%, gen Zers more likely at 50%, millennials at 43% and gen Xers coming in at 40%.

When it comes to what to pack for a road trip, 50% of Aussies choose comfort items like their favourite pillow (40%), tea bags, candles, or their favourite mug (25%), but only 32% will pack essential automotive requirements like wiper or brake fluid and engine oil. This is also a reflection on the extreme reliability and lack of day-to-day maintenance required for modern computer-controlled engines compared to decades gone by.

Supporting this theory is the finding that packing snacks is considered a road trip priority for more Australians (79%) than checking the radiator coolant (69%), the windscreen (68%) and wiper fluid (67%)!

Some more food for thought from Amazon’s research: more than 70% of Australians want to learn basic car maintenance to manage car costs (74%) or to better prepare themselves for road trips (72%). This represents an opportunity for automotive businesses to consider conducting basic automotive maintenance training for their customers.

Aussie road trips remain alive and well for postpandemic escapes over winter and there is no doubt that this trend will increase as the warmer months approach.

Source data for this story can be found at: amazonau.gcs-web.com/news-releases/newsrelease-details/amazon-australia-announcesautomotive-part-finder-making-it

Believe it or not, it is the wonderful millennials (born 1981 to 1996) who are the most road-trip happy generation, with nine in ten (89%) saying they love going on road trips. This compared with gen Xers (born 1965-1980) at 83%, baby boomers (born 1955-1964) at 81% and gen Zers (born 1997-2012) at 77%.

CAPRICORN IGNITION AUGUST 2022 1 1

SPRINT CAR MAKES SPRINT CAR MAKES DREAMS COME TRUE DREAMS COME TRUE Not everyone gets the opportunity to live out their childhood dreams. But if you work hard and, as it was in the case of Scott Chatwin, make the right friends, you might be lucky enough to make them a reality.

Scott owns Merger Contracting, an asphalt business that runs its own truck repair and service workshop. He realised his childhood dream when he got to compete in his first sprint car race in 2015. Now he has his own sprint car and team.

Scott’s passion for sprint car racing started when his mum would take him to the Claremont Speedway in Western Australia when he was about nine years old.

“It was something that we both looked forward to,” he said. “She enjoyed it, but I never thought that it would get to this point.”

So, how did his dream come true? Scott had a good mate who was running cars for Wormall who hit him up to be a driver. Scott agreed and, with only a little experience under his belt (driving a sprint car on a sponsors’ driving day), entered his first race as a Wormall driver.

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“I think I was pretty well overwhelmed because there’s mud flying around and you’re trying to pull a tear off your helmet and get around the track,” he said. “I remember it being pretty daunting to start with, but I’m not one to give in, so I stuck with it and I had a couple of decent crashes, but I was still determined to keep going.”

Scott eventually left Wormall to start his own team: Merger Motorsport. He managed to finish in the top 10 within two seasons.

But life got too busy for the owner of three businesses and crashes too expensive, so he bowed out of driving in 2019.

Kris Coyle now drives the purpose-built Merger Motorsport car, which runs a 410 cubic-inch motor that can produce about 950 horsepower. It weighs about 700 kg, including the driver. The car’s wings are made of light-aircraft aluminium and the panels are lightweight fiberglass and aluminium. Its power-to-weight ratio is comparable to a Formula One race car.

Kris scored the team’s first win at the Krikke Boys Shootout in Bunbury this February. But at the following meeting in Bunbury, after being “miles in front”, a yellow light forced Kris back into the pack and Merger ended up with third place.

“That’s the way of the motorsport we run,” Scott said. “You can be hero one minute and zero the next.”

Kris, who comes from a racing family, started competing in sprint cars when he was 16, but bowed out of the sport in his 20s until Scott gave him the opportunity to race full time.

Like Scott, he also enjoys the social side of the sport. “You do make a heap of good mates out of it,” Kris said. “It’s like a second family.”

“It’s just something you’ve been brought up with and it’s in your blood,” Kris said.

Kris, a diesel mechanic, also effectively manages the car, including ordering parts for the vehicle through Merger’s Capricorn account, which he finds really easy.

Merger had an unlucky season this year with some engine issues, but the team still managed to finish fifth.

They have their sights set on bigger things next year. As long as Kris steers clear of the walls and expensive bills, Scott will still be happy no matter the result.

But the true calling for the self-confessed adrenaline junkie is hitting average speeds of 140-150 km/h while flying sideways around a dirt track.

CAPRICORN IGNITION AUGUST 2022 1 3

CONGRATULATIONS

MARAMA THOMPSON AUTO SUPER SHOPPE EUROTECH CAPRICORN RISING STAR APPRENTICE OF THE YEAR

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CAPRICORN

Stars

Capricorn congratulates Marama Thompson, from Auto Super Shoppe Eurotech in Hamilton New Zealand, for being named the 2022 Capricorn Rising Stars Apprentice of the Year. Marama is a dedicated apprentice and is an inspirational example of why it is worth chasing your lifelong dream.

“I successfully completed the entry course with Auto Super Shoppe Academy and did a couple of days of work experience in my current workshop, before being offered an apprenticeship,” she explained. “The joy of another car fixed and roadworthy, and another satisfied customer, makes me proud of what I do.”

Capricorn Rising Stars is an opportunity for Members to recognise, reward and retain high-performing apprentices.

A nomination indicates that the apprentice is someone who shows initiative in the workshop, has an eagerness to learn and is committed to the auto industry. Since starting her apprenticeship in 2020, Marama has consistently demonstrated these qualities across all aspects of her work.

Marama’s forward thinking, versatility of skills and problemsolving ability makes her the perfect fit for the Capricorn Rising Star Apprentice of the Year award. In the current skills shortage market, an apprentice with Marama’s dedication and commitment is invaluable to a workshop and demonstrates the benefits of committing to training the next generation of technicians.

Auto Super Shoppe Eurotech’s Director Nik Fowlie believes Marama’s technical aptitude is the best he has seen in 16 years of the trade. “She is a superstar. She has only been with me for two years and has now become my 2IC,” he said. “It’s a bit scary that I can go out and leave a two-year apprentice in charge to run the workshop if I need. She really deserves this award.”

She understands that being an apprentice in a workshop is about more than just fixing cars. As she puts it herself: “I am all about customer service, if possible, I will try to find a solution for all our customers problems.”

In addition to one day becoming an expert technician, he is confident she will also be able to run the front-of-house and successfully manage a business. Marama’s ultimate dream is to open her own Auto Super Shoppe Garage and eventually have an academy set up to teach and train the next generation of auto apprentices.

Marama’s versatile skill set is a significant asset to her current workshop and will continue to benefit her when working towards her future goals. She is passionate about encouraging other women in the industry to chase their dreams, especially if they’re able to experience the same levels of support and encouragement that she has.

Marama hasn’t always worked in the automotive industry, but has dreamed of becoming a technician, working on vehicles and owning a workshop since she was young. Having pursued a number of different career paths, it wasn’t until COVID hit that she committed to following her dream of becoming a mechanic.

As the 2022 Capricorn Rising Star Apprentice of the Year, Marama will receive $5,000 from Castrol. The Auto Super Shoppe Eurotech team will also benefit from a 12-month Repco Autopedia subscription and enrolment in the Workshop Whisperer’s Service Advisor Pro online program.

Capricorn congratulates Marama and all the Capricorn Rising Star nominees. Reading through all the nominations was a great insight into all of the talented apprentices out there and confirmed our confidence in the future success of the automotive industry. Deciding the 2022 Capricorn Rising Star Apprentice of the Year was no easy task. The competition was close, and the fact that we had so many dedicated and committed apprentices in the running made the final decision difficult for our judges to make.

Thanks goes to all Members who are helping train and prepare the next generation of industry leaders. Capricorn also thanks our program sponsors Castrol, Repco and The Workshop Whisperer for their continued support.

Investing in modern tools and equipment - by Jeff Smit

The technology that everyone now takes for granted in the modern motor vehicle has certainly brought a new dimension to driving safety, comfort and entertainment, but it’s not infallible.

Technology has enabled a host of features that today’s techsavvy consumer is obsessed with – until something stops working. And that’s when they turn up at your workshop door and expect a quick and financially painless fix.

The workshop of today is expected to know the ins and outs of stuff like parking assist, reverse assist, adaptive cruise control, head-up displays, driver drowsiness detection, gesture and voice controls, autonomous driving, blind spot warning, heat and massage functions and ambient lighting – and we haven’t yet started on the drive train features.

Diagnosing and repairing these technologies will need some investment in tools, equipment and training. Those who choose not to make this investment will struggle to survive. Just keeping up with the sophisticated and specialised electronics that are often unique to every make and model of vehicle is a challenge in itself.

Those who say they can’t afford the tools and training to cope with this tsunami of technology will have to think again – can they afford not to invest?

A major difference between some old-school tools and equipment and the new, modern tools is that the latest versions are non-invasive, meaning that tests can be carried out and a diagnosis presented, without pulling major components apart.

Here are some of the new-age tools and equipment: •vehicle brake, alignment, and suspension test lanes •inductive ignition and injector testers •thermal imaging camera •digital multimeter with amp clamps •relay test kits •stethoscope kits •oscilloscope with amp clamps •pressure sensor kit with first-look sensor •scan tools Having all this great equipment at your fingertips might make the workshop look very professional, but having it and knowing how to apply it are two different things. This is where data and information come into play.

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Good data and information cost money, so this is another, and may be a very essential, investment.

But don’t think of ‘investment’ as lost money or as an impost on your profitability. Most workshops agreed with our suggestion many years ago to apply a scan tool fee to their customers invoices, the rationale being that having to invest in expensive tools and learning how to use them was as much a workshop chargeable product as the consumables like oils, filters and spark plugs.

We are now suggesting that this fee could be designated as a specialist diagnostic equipment and information fee. It could be applied every time a diagnostic labour fee is applied to a repair.

This fee becomes the means to continue investing in tools and equipment – and there’s little doubt that such investment will need to be ongoing while the gurus in the car factories keep introducing new gadgets into the cars they make.

This fee should do more than just cover the bare costs of equipment. A workshop is able to make a profit on specialist diagnostic equipment and information, because isn’t that why you’re in business in the first place? Once the fee is properly applied, the workshop shouldn’t have to think twice about how it is going to afford any continuing investment in tools and data.

Many studies have shown that the average vehicle owner expects their chosen workshop to be capable of servicing the vehicle but also capable of repairing the vehicle when anything goes wrong. A workshop that turns away customers because of knowledge or tools inadequacy has most likely lost that customer forever.

Workshops need to plan where they want to be in the market during the next five or ten years – a professional repair workshop or a simple service workshop capable of changing the oil and little else.

Use your Capricorn or other networks that you frequent to check out the most preferred tools and data before you spend any money. Technicians soon work out what works and what doesn’t, and they will be happy to share their experiences.

And every time you invest in new tools and equipment or training, make it a rule to let your customers know about it. They will appreciate the reassurance that you are keeping up with technology.

POSITIONS VACANT

COME AND WORK IN MY GROTTY GARAGE

When today’s workshop owners left school, it was considered a privilege to be signed up as an apprentice. It was a different time – the working conditions and pay weren’t great, but apprentices understood the importance of securing a job and a career. The greasy floors, the neglected toilet and the smoko room that looked like a bombsite didn’t even register.

Fast-forward 20 years – how things have changed. The current technician shortage has shifted the dynamic, with workshops chasing staff rather than staff chasing workshops. Suddenly, working conditions are important. The state of your workshop will determine your ability to attract quality staff who will make you money. We have preached about the importance of workshop presentation on workshop morale and customer perception for many years. You can now add recruitment to that list.

An inner-city workshop that we know of recently had its lease terminated, so the workshop owner had no option but to shut down operations. Word spread

fast to other workshops and before long, most of the staff were getting phone calls with offers of employment. One highly trained technician organised interviews at several local workshops. A week later he was asked how the interviews were progressing. ‘Not good,’ he confessed.

‘When I saw what one workshop looked like, I just abandoned the interview. A couple of the others seemed OK from the outside but once I got inside, they were disorganised, messy and had no real desire to grasp new technologies. The pay they offered was good, but I soon realised I was going to go backwards, and at 35 that’s not what I’m after.’

trend. When he loses a staff member, the vacancy is filled very quickly. If you saw his workshop, the reason is obvious.

It is clean and organised – the sort of workshop anyone would want to work in.

That technician’s experience with workshops that may be looking to recruit or even retain quality technicians should trigger a big aha moment for their owners or management. Your average technician or mechanic with the attitude that a job is just a job may very well take anything, but not your quality technician who is focused on a mutually beneficial career.

Quality technicians are demanding more, and so they should.

The best bosses deserve the best staff and the best staff deserve the best workplaces. So ask yourself: when was the last time you had a uniform change, workshop makeover or reception area clean-up? When was the last time you asked your staff what you could do to make the workplace a better place to work? When was the last time you asked your staff what equipment you needed to invest in? And, most importantly, ask yourself if your working conditions are better than the competition down the road?

Another workshop we know well, in the Southeast Queensland area, reports that the current technician shortage is hitting his area hard – but he has bucked the

The more you think about these stories, the more you realise the importance of presentation. You might have learnt to live with the paint peeling off the walls of the office and the piles of junk in every corner, but your potential recruits will notice these things immediately. The good ones will keep walking until they find a well-run and clean workshop – and there’s a good number of those out there.

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PASSION AND WORK-LIFE BALANCE THE SECRET TO SUCCESS FOR CAROLINE A career in the automotive industry was not the future anyone had mapped out for Caroline Langan-Minca.

Not herself — she planned on becoming a forensic psychologist.

Not her parents — she came from a family of academics. And certainly not the teachers at her private girls’ school.

“I know the best auto transmission person in the industry. I know the best machinist in the industry. He knows more about machining engines and engine tolerances in his little finger than I will ever know in my lifetime. I just think people have such a wrong perception about the whole industry. I think our industry is great.”

“It was expected you would go to one of two universities and if you didn’t, you were excommunicated; you were never spoken about again,” she said.

Caroline started her career with an apprenticeship at Mazda in the Melbourne suburbs, where she enjoyed the variety of the work she was asked to do.

Caroline followed the path laid out for her, going to university in 2000 and studying a double degree in criminology and psychology. Although she enjoyed some of the subjects, the prospect of seven years of study “just killed me inside”.

“I liked the fact I could be a service advisor in the morning and deal with customers, then go into the workshop and work on the cars, then go back out in the afternoon and be a service advisor,” she said. “It meant you were never bored. You can switch hats, change roles. If you’re a person who thrives on a challenge and variety, then this is the industry for you, because it’s there if you want it.”

“I thought, right, I really love cars, I’m going to defer for a year and go and do a pre-apprenticeship course,” Caroline said. “I figured if I hated it, I’d only have wasted six months. But if I love it… well… what if I love it?”

It’s not much a spoiler to tell you that Caroline did, in fact, love it. More than two decades later she runs and co-owns His’n’Hers Automotive Solutions in Kilsyth, Victoria, with husband, Craig Minca. They’ve been in business for 14 years.

“I’m really passionate about this industry,” Caroline said. “I look at what we’ve made out of this industry, our little corner of it, what we’ve made for ourselves and the lifestyle we have, and our little community of customers, and it makes me emotional.

“My experience is in stark contrast to what a lot of people see our industry as being. You hear people say, ‘mechanics can’t lie straight in bed’ or ‘you’ll never find an honest mechanic’. I know heaps of honest mechanics. I know so many people in the automotive industry who are really topnotch people, who are highly educated, who are passionate about their industry, who know so, so much about their field of expertise.

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It was at Mazda that Caroline met her husband. She and Craig would leave to work at other workshops for a few years, before buying Montrose Automotive Services (the future His’n’Hers) in 2008.

“We were working ridiculously long hours for someone else and we thought, ‘wouldn’t we rather be doing this for ourselves?’,” she said. “We bought the business and just hit the ground running. It was a business that had a good reputation but the guy was retiring so he hadn’t done anything to build it up for about five years. He was winding it down.”

At the time, the business was four hoists and two mechanics.

Now, there are five mechanics (including Caroline and Craig) and an apprentice.

“We could build it up more but, to be honest, we actively choose not to because running a business is really stressful and worklife balance is actually more important to us,” Caroline said.

When Capricorn asks Members about the biggest challenges they face in our annual State of the Nation survey, maintaining a work-life balance is consistently one of the top issues. Caroline and Craig now seem to have the formula cracked, but it didn’t come easily.

“We get a lot of reviews and feedback from people saying they feel comfortable coming here because they know I’m behind the counter,” she said. “Even on the days I’m not here, they know this is a very female-friendly place and that we explain things very thoroughly.”

“We realised pretty quickly we needed to work around school pick-ups,” she said. “We worked out that I would open up in the morning and Craig would do the school drop off. Then I would leave at 3 pm and go do the school pick-up, take the kids home and get the dinner organised, and Craig would do the shop lock-up. That way, neither of us was at the shop for 10 plus hours.

It also meant the kids weren’t in after-school care, which saved us $600 a week.”

A shelf filled with parts is kept specifically to show customers examples during service explanations. “A bent valve in someone’s head, if they know nothing about cars, is a hypothetical part,” she said. “They don’t know what it is. Unless they can see it, it means nothing. When you show them, it makes people feel like they have some power over what’s going on in their car.”

Two years into running the business though and the still-hectic lifestyle of running their own business was beginning to show. A warning from the doctor about Caroline’s health lead to a real shake-up in the way they operated.

“We stopped working Saturdays,” she said. “We started training our customers that we shut at 5 pm. We’ll wait until five-past, but that’s it. We have loan cars or key drop off and lock-up spots customers can use. If anyone asks, we just tell them we have kids at home and we’d rather be with them. Everyone says, ‘fair enough’. The customers have been absolutely fine with that.

We’re just not going to do ridiculous hours anymore.”

A career in the automotive industry might not have been the path anyone expected Caroline to take all those years ago, but building a successful business in an industry you’re passionate about, and having happy customers and a good work-life balance, is a satisfying road to tread. Even Caroline’s old school has changed their tune.

“They invite me back for careers nights now,” she said. “I’m the poster child for trades — and I service all the teachers’ cars!”

These days, Caroline works three days in the business and Craig works four.

Caroline says prioritising work-life balance has been one of several ingredients in His’n’Hers’ longevity and success. It frees up time for her family and for her other great passion in life, her horses. Another secret to success has been leveraging the workshop’s female-friendly credentials.

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DON’T NEGLECT THE IMPORTANCE OF ONGOING BRAND AWARENESS MARKETING For most workshops, marketing is a reactive response for when business slows down. However, savvy business owners know it’s wise to pay attention to your marketing efforts even when there is plenty of work coming through the door.

In a broad sense there are two types of marketing – brand awareness and call-to-action. Brand awareness campaigns are about getting your brand and image in front of potential customers while a call to action is about getting a deal or special in front of a customer.

Brand awareness marketing generally focuses on the brand while call-to-action marketing focuses more on price.

Understanding the difference is important when determining what type of customers you are trying to attract.

Most small businesses seem to engage in call-to-action campaigns. The reason is that most owners want to see immediate results. They want the phones to ring instantly, and new customers to walk in the door. The unfortunate reality of this industry is that call-to-action marketing often doesn’t get the expected response.

A simple reason for this is that the majority of the public are not switched on to specials that a mechanical workshop might offer. The exception to this would be the customer whose car is due for a service and a special offer arrives just in time while it is top of mind. This explains why, in the automotive aftermarket, a far better return on investment can often be expected with long-term brand awareness campaigns rather than short-term call-to-action offers.

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Most workshops make the mistake of starting a brand awareness campaign but abandon it when they don’t get immediate results. An example would be a workshop putting up signs at the local footy club, only to pull them down in a couple of months because the phone didn’t ring off the hook with new customers.

The key with brand awareness is to get your brand in front of potential customers multiple times through different campaigns. For example, a localised mail drop may be a waste of time on its own but complement it with new signage out the front of the workshop, new signage on the vehicles, a localised Facebook campaign and new signs at the local footy oval and you may be surprised at the number of people who start to take notice. Very often it will take four or five exposures before potential customers begin to notice you. An old newspaper measure was that an advertisement needed to appear at least nine times before anyone acted on its offer.

Before you do anything, map out exactly who you are trying to reach. Campaigns with a specific target like ‘40-year-old females who drive European cars’ are much more targeted than ‘people with cars’. Figure out where you find those customers.

Is it on Facebook, or at the local hairdresser, or at the soccer ground on Saturday morning?

Is there a place for call-to-action campaigns in the auto repair industry? Absolutely! But don’t make the mistake that so many workshop owners make of relying solely on sporadic call-toaction campaigns.

MEMBER PROFILES

WHEEL ATTENTION Wheel Attention in Wangara, Perth, was initially opened to meet the demand for wheel repairs but has developed significantly during the five years that they’ve been in business. After two years spent setting up shop and establishing a reputation, the company invested in state-of-the-art machinery for wheel straightening and refurbishments.

Over time, the business expanded its offerings, adapting to fill gaps in the market when they presented themselves. Wheel Attention now offers restorations, servicing and auto electrical on top of wheel repairs. To keep up with client needs in evergrowing auto industry, Wheel Repairs expanded to three full time staff and invested in a new wheel positioning machine to increase efficiency and speed. These choices have allowed the company to provide significantly quicker turnarounds for clients.

Wheel Attention has been a Capricorn Member for four out of the five years they have been operating. They say that being a Member allows their staff to spend more time working on cars and delivering for their customers and less time driving to pick up parts. They also say that their single monthly Capricorn statement has played a key role in easing their accounting

burden and their staff enjoy reading Ignition to keep up-to-date with industry developments and innovations so that they’re able to deploy the best technology and machinery when servicing their clients.

Like many other members, Wheel Attention has been greatly impacted by COVID 19. The constantly shifting business landscape has meant that sourcing parts and freight has become a challenge. As is the case with the majority of operators in the industry, they understand that this has a significant impact on their customer base, causing delays and slowing down their ability to provide their range of services. However, they say that being a Capricorn Member has given them access to a larger range of suppliers, which is crucial in the current market.

Wheel Attention’s quick tip of the day is to always reverse into parallel parking spots, as driving backwards and forwards multiple times increases the likelihood of damaging your tyres (and thus giving them more work).

CAPRICORN IGNITION AUGUST 2022 2 1

PREFERRED SUPPLIER PROFILES

ATHOL PARK FORD WRECKERS

26

YEARS PREFERRED SUPPLIER

SA/NT fordwreckers.com Athol Park Ford Wreckers ensure that customers are receiving the best, first time, every time. Since 1985, the family-run business has followed a trusted method, ensuring they source the best products to assist their customers. The company prides itself on their customer service, product knowledge and integrity. As an Auto Recycler, they offer parts to suit late model Fords, new and used. Their team has a sound understanding and extensive knowledge of the Ford product and have an ability to back this up with OEM information. The company’s staff includes several long-term mechanical experts in dismantling, repairing and modifying late model Fords of all shapes and sizes. Athol Park Ford Wreckers is great for those looking to save some money on quality parts and spares, with excellent before and after sales service.

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N R O C I R P A C

LAST MONTH'S ANSWERS LAST MONTH’S WINNERS 1st Prize - 4,000 points John Judd Industries Pty Ltd 2nd Prize - 2,000 points Pro Tect Auto Ltd

Email your answers to ignition@capricorn.coop before the 25th of August.

Winners will be selected by a lucky hat draw of correct entries. Please ensure you include your Member number and email address when submitting your entry.

WORD Find the 15 words hidden in the jumble.

They could be horizontal, vertical, diagonal or backwards. See if you can find them all!

SURVEY RESULTS HYBRID MOTORS CONTROL GLOBAL ROAD ENGINES

DATA ASSET TRAIN EQUIPMENT GARAGE INDUSTRY INTEGRITY

CAPRICORN IGNITION AUGUST 2022 2 3

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