Ignition Magazine Australia | October 2022

State of the

report

NEW DATA ACCESS LAW Find out how it could benefit you & your workshop.

CLASSIC RIDE

Feel the need for speed with a look back at the Porsche 356.

NEXT FORMULA ONE STAR Is Australia’s Oscar Piastri about to set the F1 world alight?

This third year of the pandemic just may have been the most challenging yet, and we continue to be inspired by the incredible resilience shown by the automotive aftermarket community. This year, we’ve proven that by working together, we emerge stronger as we adapt to the new normal.

We’re also very proud that in such an uncertain year, Capricorn again managed to return significant value to our Members. We credit this to the adaptability and innovation of our team, the skilful direction of our leadership and the ongoing loyalty of our valued Members.

The strength of your determination and resilience and your faith in our industry are demonstrated in our end-of-year results. Capricorn is a Member-owned organisation so our results are your results, and we cannot be prouder to announce them.

Member purchases from Preferred Suppliers reached $2.93 billion this financial year, up 13% on 2021’s results. Capricorn’s overall profit after tax was $17.4 million.

More than $43.35 million in Capricorn Rewards Points was earned, a trade rebate of $15 million was approved to be paid to Members for trade account purchases made throughout the year and a 5% dividend has been declared representing a $72.5 million total return for FY22. The trade rebate will be issued as Rewards Points on eligible Members’ September 2022 statement..

While the dividend component of our returns is slightly lower than previous years given challenges in economic conditions, it is still a comparatively a strong yield compared to market. The overall distribution represents the highest return we have ever provided to our Members. The trade rebate and Rewards Points reward those Members who maximise the spend on their trade account which contributes to the overall success of Capricorn. These distributions more than make up for a slightly lower dividend yield.

In calculating the value of our returns to Members, Capricorn considers both monetary and non-monetary benefits. We call it “Member Value Return”.

This year, we generated Member Value of $63.3 million, which resulted in a Member Value Return of 22.3%. That ultimately means that for every dollar invested in Capricorn, we have created a 22.3% return.

Our protection division put in another strong performance this year, despite widespread flooding across eastern Australia leading to $37 million claims lodged as at 30 June. Not only did Capricorn Risk Services write $99.6 million in gross protection for Capricorn Mutual Limited but eligible Mutual Members shared a loyalty rebate of $4 million.

It’s the second time in the Mutual’s history that a rebate has been declared. Last year, eligible Mutual Members shared in a $6 million rebate, with those New South Wales and Queensland floods making the difference between last year and this year. While the rebate might be a little lower, we’re immensely proud of our role in helping Members affected by the flooding get back on their feet as soon as possible.

In October, you will receive your Capricorn Wealth Certificate. This certificate outlines any Capricorn Rewards Points, dividends, trade rebate, and Capricorn Mutual Limited Member Loyalty Rebate you have received over the past 12 months. You will receive an email notifying you when your Wealth Certificate is available. Once your Wealth Certificate is available, you can access it by logging into the myCAP Portal using your shareholder number.

Once you have seen all the hard-earned points on your Wealth Certificate, login to capricorn.coop/rewards to check your points balance and discover all the fantastic products available through Capricorn Rewards**.

Past performance is no

are not guaranteed. Shares are issued by Capricorn Society Limited (ACN 008 347 313). No offer of shares is made in this article or publication. An offer of shares will only be made in, or accompanied by, Capricorn’s Prospectus and any supplementary prospectus which is available on request or may be viewed at www.capricorn.coop under “Corporate Documents.” Before making any decision to apply for shares you should consider the Prospectus and any supplementary

must be made on the application form in or accompanying the Prospectus.

** Participation in the

is

to the Capricorn Rewards Terms and Conditions which can be found at www.capricorn. coop/terms-conditions.

David Fraser Group CEO

CEO’s message

Do you have vacant positions in your workshop? Are you struggling to find qualified technicians? Or even apprentices?

This year’s State of the Nation report, Capricorn’s third, provides a fascinating insight into an automotive industry that is battling a serious skills shortage. Labour, especially skilled labour, is becoming increasingly hard to come by.

This was true for last year’s report, and as a result we focused heavily on the importance of taking on apprentices in 2021. It is, after all, our pipeline of future talent.

Many Members have done just that, with more than half (52%) of Members who have apprentices saying the reason they took one on was the lack of qualified tradespeople. Almost two in five Members currently employ an apprentice and more than one third told us they were very or extremely likely to take one on in the future.

In the hunt for qualified technicians, some Members have even begun searching overseas, looking to sponsor experienced mechanics and other tradespeople to bring them over to fill long-term vacancies.

But what more can we do? Well, one idea is to widen the range of homegrown talent we’re able to attract into automotive jobs. Why, for example, don’t more women work in our industry? Just 6% of workshops have a female mechanic and only 12% employ a female apprentice, according to this year’s State of the Nation report.

Yes, automotive can be a very manual and very dirty job. It’s not for everyone. Yes, it has traditionally been a male-dominated environment. But it doesn’t have to be. Women are 50% of the workforce. Many of those who do work in auto absolutely love it (and it was great to see that three of our five Rising Star finalists this year were women). So, surely, we can attract more women into automotive careers.

The challenge, then, is to make automotive careers more attractive to a more diverse range of people. We need to create opportunities, we need to communicate the message that we’re a welcoming industry, we need to challenge perceptions that we’re an industry that’s only for the blokes.

It’s not the only solution to our industry’s skills shortage, and like taking on apprentices, it’s not a quick fix. But providing opportunities for women and encouraging a more diverse workforce are solutions that will make our industry a much better, happier place to be.

We discuss this idea in more depth in State of the Nation, so do have a read of it when you get the chance. Once again, this year we’ve not only highlighted the big trends and issues affecting the industry, but we’ve included plenty of actionable tips and advice to help anyone running an automotive business become more effective, efficient and profitable.

CONTENTS OCTOBER 2022

2 FY22 CAPRICORN MEMBER RETURNS ANNOUNCED

Despite another year of uncertainty, Capricorn has again returned significant value to Members.

5 NEW DATA ACCESS LAW

Find out how it could benefit you & your workshop.

7 XMAS GIFT CARDS

Order before these dates to ensure that everything arrives in time.

8 YOUR AUTOMOTIVE FUTURE AT AUTOCARE

2023

Find out what’s in store at Australia’s largest education-led automotive convention.

9 THE DAYS OF SHOTGUN DIAGNOSTICS ARE GONE Are you keeping up with technological advancements?

10 SKILLS

SHORTAGE LEADS TO INTERNATIONAL SEARCH FOR TALENT

One national company’s innovative solution.

14 CLASSIC RIDE

Feel the need for speed with a look back at the Porsche 356.

16 NEXT FORMULA ONE STAR

Is Australia’s Oscar Piastri about to set the F1 world alight?

18 STATE OF THE NATION

Our industry-wide survey & report is back for another year of fantastic insights.

22 INVESTING IN YOUR STAFF

With the move to EVs on the horizon, upskilling your team will be the key to survival.

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

ii. any inaccuracy, error or omission in any material in Ignition.

Yours in cooperation, David Fraser Group CEO

New data access law means a new era for the aftermarket

by Jeff Smit

The aftermarket technicians of Australia are no longer working in the dark when they need to access critical data that until now has been beyond reach, securely locked inside the virtual safes of the car makers.

It took Commonwealth legislation to achieve a level playing field in vehicle repair, and that became law in July this year.

The Motor Vehicle Information Scheme (MVIS) is now operational in Australia. The law, the first of its kind in the southern hemisphere, compels vehicle manufacturers to provide all service and repair information to independent repairers at a fair market price.

For independent workshops, it marks the beginning of a new era.

Independent workshops have struggled to obtain vehicle service and repair information from manufacturers, including software updates, wiring diagrams, security and immobilisation information. As vehicle technology has advanced, the need to access manufacturer-level information for diagnosis and repair has become critical.

The responsibility of the day-to-day operation of the scheme and access to manufacturer vehicle information is handled by the Australian Automotive Service and Repair Authority (AASRA).

It will be a learning curve for both sides, the car companies and the independent workshops, but written into the new law are mechanisms that aim to be fair to all parties. In simple terms, aftermarket workshops will have access to the same car makers’ codes, part numbers and repair data that are available now only to franchise dealers, and repairers will pay a fee for the service.

It’s important that the industry now supports the decade or more of work that has gone into the ‘choice of repairer’ campaign. It’s now the workshops’ turn to make this work for the industry and for the customers of all independent workshops.

Every workshop now needs to consider where they want to position themselves. Just because the industry now has this access to OEM data, even at a price, it doesn’t mean that every workshop is going to need it all, let alone do it all.

It is going to become more difficult now for any workshops which boast that they can fix and service all makes and models, and the difficulties will multiply as technology keeps rushing forward.

The first step is for every workshop to consider signing up with AASRA. Just as the car companies needed to come to the party, the same applies to the aftermarket industry. For the scheme to work well, the industry needs to give it full support.

It will be a brave workshop that rushes in to sign up with every car brand that sells in Australia, even if they can afford to do so. This new era of car repair will need to foster a greater level of collaboration between workshops.

I’m forecasting that it will not be necessary, and in most cases just not possible, for every workshop to be able to do every type of repair on every make of car. It will become more important to know which workshop can do which updates or repairs.

I urge every workshop to step outside their individual squares, consider signing up to AASRA and increase their awareness of the capabilities of other workshops in your area. It will become a question of efficient use of the newly available data, and don’t worry, there are plenty of vehicles around that will need your future attention and if you refer work to others, you will get your share.

Participation

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Program is

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Tick off your Christmas shopping early using your Reward Points. CHRISTMAS IS COMING!

For the best chance of everything arriving on time to be wrapped and under the tree, please order before these dates:

•Merchandise: Monday 7 November.

•Physical vouchers: Monday 28 November.

•eVouchers: Monday 19 December.

E-vouchers are the perfect gift option……They can be delivered straight to your inbox and can then be printed for you to handover as a gift, or you can choose to forward the e-voucher to the recipient’s inbox. As e-vouchers can be stored on the receiver’s phone, they won’t be forgotten or lost, making them the perfect gift option.

*T&Cs apply. Products subject to availability. The dates and times set out in this advertisement are a general guide only. No guarantee of delivery before Xmas is made and Capricorn will not be held liable for any failure to deliver items before Xmas regardless of the date on which they are ordered.

Autocare 2023 is Australia’s largest education-led automotive convention, offering an unprecedented training and networking opportunity to take automotive career development, skills and business growth to the next level.

Hosted by the Australian Automotive Aftermarket Association (AAAA), Autocare will run across two days, 9 – 10 June 2023, and see thousands of automotive technicians and business owners descend on the Brisbane Convention & Exhibition Centre (BCEC).

International guest speakers will share the latest global trends, and join a group of Australia’s leading experts for a comprehensive education program tailored specifically for automotive parts, service and repair professionals.

“Autocare is a must attend event for any workshop owner, manager or technician wanting to take their career or business to the next level. Autocare was built by the industry, for the industry and the training program is designed to provide the answers the industry needs,” said Stuart Charity, AAAA CEO.

“Vehicle technology is changing at break-neck speed and technicians need to be trained and ready to efficiently service and repair the latest generation vehicles. For workshop owners and managers, they need to know how best to invest in the equipment, technology and business practices to plan and adapt for future success. In addition, with the unprecedented skills shortage, finding practical methods to attract and retain great staff is more important than ever.”

AT

AT

Specialised training streams for Autocare 2023 are designed to maximise learning across intensive, practical sessions. The Technical Training stream targets technicians and apprentices and focuses on advanced comprehensive hands-on training for the latest generation vehicles, scan tool, software and diagnostic requirements. The Business Management stream is for business leaders wanting to understand emerging trends, how the carparc will change and how they should prepare their team and workshop for the future.

The incredibly valuable education program will be complimented by an exciting free Trade Show. 100 top automotive companies will exhibit the latest and greatest products and services. Thanks to a dedicated demonstration stage, tools, equipment and services will come to life via interactive displays that yield further hands-on and educational opportunities for visitors. Networking is another huge component of Autocare 2023, with a happy hour networking event on the show floor.

“If you are involved in the automotive parts, service and repair sector save the date, you won’t want to miss this unique opportunity to learn, uplift your team and grow your business,’ said Stuart.

Registrations for Autocare 2023 will open shortly. To find out more go to www.autocare.org.au

THE DAYS OF SHOTGUN DIAGNOSTICS ARE LONG GONE

Vehicles have changed a lot over the course of the last 30 years. What was once a largely mechanical device on wheels has developed into a multilevel high-tech computer on wheels.

The industry has battled often to keep up with changing technology, and as a result there is now a skills shortage in diagnostics and troubleshooting.

Problem analysis and diagnostics in the motor industry have become highly sophisticated and specialised. Most technicians and workshop owners are fully aware of this but, unfortunately, the average motor vehicle owner is not.

This is where the diagnostic process starts – with the vehicle owner.

It is the responsibility of workshops to educate their customers about the diagnostic skills and equipment required to identify and resolve tricky issues. It’s all about communicating effectively and setting expectations about the time and cost involved with the modern automotive diagnostic process.

Can You Just Have a Quick Look at This?

While times and technology change, people often stay the same. Many motorists still believe they are entitled to a free quote following a five-minute inspection every time they bring their car in for repair. Unfortunately for them, days of ‘can you just have a quick look at this?’ are long gone.

Other trades and services, such as plumbers, lawyers or doctors, are always careful to charge for their time – even when providing inspections, quotes, advice and estimates – so why should an auto mechanic be any different?

Unfortunately, our State of the Nation research this year has shown us that almost half of all workshops are still only charging for diagnostics sometimes, and more than one in ten never charge.

This represents an enormous missed opportunity for workshop owners to be bringing in extra income by simply charging fairly for their time, equipment investment and expertise.

Complex Cars Require Complex Diagnostics

With the sheer number of electrical components and electronic circuits in a modern vehicle, technicians need to understand electrical theory and circuits. Electrical and electronic diagnostics are impossible without the correct diagnostic equipment, vehicle data and information, but this is not always easy, or cheap.

Very few workshops can be so generous that they can afford to charge only for labour and throw in the huge investment on diagnostic equipment or data for nothing.

If you don’t already, you should seriously consider passing these costs on to customers when dealing with any repair job that demands diagnosis, research, or data access.

Typical electrical test equipment required for fault diagnosis can include scan tools, electrical connector test equipment, digital multimeters, and oscilloscopes, and there are many other specialised tools and equipment.

Charging For Diagnostics, Quotes and Estimates Is Not a Ripoff

A shotgun approach to vehicle repair is no longer possible. Without a systematic fault-finding diagnostic sequence or procedure, a technician has little chance of fixing a modern vehicle in a timely and cost-effective fashion.

It’s high time we shook off the impression that charging for diagnostics, quotes and estimates is somehow “ripping people off”. If workshops want to remain viable in the face of increasingly technologically complex vehicles, we need to get comfortable with billing customers for the time, investment and expertise needed to correctly diagnose and repair their cars.

Capricorn Service Data Can Help

Powered by Auto Data, Capricorn Service Data is free to all members and has service information on more than 34,000 vehicles. This includes manufacturers’ service schedules, service illustrations, repair times and, most importantly, an estimate calculator.

Capricorn Service Data is provided through a third party service provider and is subject to terms of use that can be located at https://www.capricorn.coop/terms-conditions

Skills shortage leads to international search for talent

What do you do if you’re a national company employing more than 200 people and you have 30 vacancies across the business?

This was the thorny problem Instant Windscreens faced, according to Instant Windscreens’ National Sales Manager for Trade Andrew Lockyer.

“We were getting busier after Covid but we were also losing people,” he said. “The mining industry here was sucking a lot of resources out of every industry. We hadn’t lost anyone through Covid, but all of a sudden we had this problem where we couldn’t replace people, we couldn’t find qualified fitters anywhere or glass technicians, and we certainly couldn’t find experienced tinters.”

The family-owned business, headquartered in WA, has more than 50 workshops across Australia and New Zealand, offering windscreen replacement and tinting services. Having dozens of vacancies for skilled employees — from system manager roles to tinters and fitters — during a massive, nationwide labour shortage was starting to impact service delivery.

“It was causing us issues, obviously,” Andrew said. “With our name, Instant Windscreens and Tinting, we like to get to people’s problems as quick as we possibly can. We try to provide same-day services. But having a lack of resources sometimes doesn’t allow you to do that. Sometimes we pushed out one, two, three days at a time. Sometimes we were passing up jobs because we just did not have the resources.”

Instant Windscreens is not alone in struggling to fill vacancies. More than half of all Members surveyed for Capricorn’s State of the Nation 2022 report said finding qualified staff was a big challenge facing the industry. One in five said it was a major challenge they were facing in their own business.

Andrew said Instant Windscreens tried everything, from ads on SEEK to the Australian Government’s Workforce site. They considered investing in younger or inexperienced staff and training them up — and it is still part of their strategy — but with a six- to 12-month training period, that alone couldn’t solve the problem.

“Also, if you’ve got trainees on, and then you push them a bit too quick and you start giving them jobs before they’re ready, you can sometimes get warranties coming back, whether it’s leaking windscreens or windscreens not fitting properly. Reputation is built not only around service but quality of workmanship as well.”

It was then Andrew sat down with his Capricorn area manager for a general catch-up about how business was going. “They said, ‘Well, we’ve got a new supplier on board called the Philippines Recruitment Company’. So, they put a proposal together, we discussed it at our board level and got the go-ahead to try it out and see how we go.”

Looking overseas for staff hadn’t been part of the plan but pursuing it, ultimately, meant Instant Windscreens was given Federal Government permission in November 2021 to hire 105 experienced technicians over the next three years.

By August this year, eight had already arrived and were working at branches across the country, and 20 more had been hired and were going through the immigration process.

“Our main aim is to bring in very highly skilled labour,” Andrew said. “The people we’ve brought in so far, they’ve got eight to 10 years’ experience. These are people we can use to train up our young Australian trainees in how to tint cars and so on. So, it’s a twofold effect for us, of bringing in highly skilled labour that suits our needs, but also brings the skill set that we can teach to our trainees.”

Greg Holmsen, Chief Executive Officer of The Philippines Recruitment Company (TPRC), said Instant Windscreens was far from alone in looking overseas for qualified labour during the skills shortage.

Greg said it is becoming a more and more popular option for businesses in the automotive industry in particular.

“We started in business 10 years ago,” he said. “Pre-Covid we were placing around 25 people a month (in jobs in Australia) and now it’s closer to 60 — and the main industry we work with is automotive.

“The great thing about the Philippines is that a lot of the guys have worked in the Middle East, in the automotive industry, so they’ve all had really good, branded experience with training and so on. So, they fit really well into our workshops here.”

TPRC has been placing qualified workers from the Philippines in businesses across the industry, from light vehicle servicing for workshops to heavy diesel mechanics in the mining industry.

The result? According to Greg, it’s not just a lot of happy customers; it’s a lot of very happy Filipino workers.

“We guarantee the person for two years. These workers are extremely loyal, they appreciate the opportunity they’re getting. (For the workshop owner) you’re changing someone’s life.

“I’m really passionate about transforming lives. We have a lifetime relationships program. When someone jumps on a plane out of the Philippines, we genuinely care for that person. Their commitment and their journey is what’s really important to us. We want to make sure that person is successful. And making sure the candidate is successful turns into the client being successful, because they get the longevity from their employee.”

The relationship is a win-win: the candidate gets a great job and a fantastic opportunity to work and build a life in Australia, while the business gets a loyal and hardworking, skilled employee, who may also be well-placed to help train and upskill the next generation of Australian talent. So, what’s the catch?

“It costs money,” Greg said. “And it takes time. But it’s a solution.”

Greg said potential candidates also go through a stringent recruitment and practical skills assessment process to ensure they’re suitably qualified for any position, including an English skills test to ensure they can communicate to a level suitable for Australian employment. Candidates who make the cut are then put forward for clients to consider for a position.

Greg said it can cost about $20,000 per employee to get them through the recruitment and immigration process, including visas and fees to the Australian Government. Dealing with the bureaucratic processes is the other potential stumbling block. It’s a multistage process. For Instant Windscreens, that included an extra step getting glass technicians and tinters added to the Australian Government’s priority migration skilled occupation list.

As part of the process, Andrew and his team were able to not just interview candidates, but test their skill set via video link to the Philippines, giving them peace of mind they were recruiting suitably skilled technicians with good English. The resulting recruitment decisions have been a great success.

“We’ve found most of the guys are really respectful and they’re really good workers,” Andrew said. “We set them up with some accommodation when they get here, until they’ve acclimatised. Our end game is to help them bring their families to Australia. We’d love to help them become Australian citizens. That’d be great for us, as well, because it shows them we’re genuinely interested in them, and we genuinely care. We want to make sure they’re settled in correctly and that they love Australia.”

Instant Windscreens has seen the benefits of this kind of recruitment strategy before, so they know it works. Ten years ago they recruited a team member from the Philippines. A decade later, he’s a naturalised Australian, he’s still with the company, and he’s a popular member of the team.

Which raises another common question workshop owners might have about recruiting from the Philippines: how the locals respond to the new recruits.

“We’ve had no feedback from our own people about bringing in staff from overseas; I think because they all understand the reality of the situation at the moment,” Andrew said. “When you talk to other people in business, they’re all really supportive of the idea. They usually ask if we can bring some staff over for them, too.

“Our intention would always be to employ Australians first, but this is really helping us get through the skills crisis. It’s not a replacement recruitment strategy; it’s just another avenue for us to find people with the right skill sets.”

Recruiting from overseas may not be an affordable or practical solution for every workshop owner. But if it’s not something you’ve considered before, and if you have the means, it’s clearly an option that’s working for other companies in the automotive industry. At a time of ongoing skilled labour shortages, surely every option has to be on the table?

Filipino staff member Larry Dolor (left) has helped Matthew Mclaughlin (right) fill a vital vacancy at the Artamon branch of Instant Windscreens in Sydney

STARTUP STARS EXPERIENCE LIFE IN THE FAST LANE

Mention the word “startup” and a lot of people would associate the term with a Zuckerberg-esque figure – a 20-something, male, hoodie-wearing tech wunderkind from Silicon Valley/the San Francisco Bay area.

But the reality is that the next great startup idea could come from anywhere in the world. Well, at least that’s what the team at Techstars believes. It’s why they run hundreds of events across the globe each year that are aimed at cultivating startup culture at the local level.

Techstars Startup Weekend is a three-day global event that enables aspiring entrepreneurs to experience startup life Silicon Valley-style and go from idea to viable business pitch in 54 hours. Capricorn is proud to have been the principle sponsor of this year’s Perth 2022 Techstars Startup Weekend held at Spacecubed in the Perth CBD from the 12th to 14th of August.

Diversity and inclusion sit at the heart of the Techstars’ mission. It was, therefore, fantastic to see 63 people of ages ranging from 16 to 63 come together to test their ideas and build something new in a collaborative environment.

An event unlike any other, Startup Weekend is all about learning, innovation, disruption and finding out what it takes to start a company in the twenty-first century.

This year, Capricorn posed two questions for the teams to work on related to challenges and opportunities in the auto aftermarket industry:

1. Technicians are working with increasing complexity due to the breadth of vehicle variety and complexity of the vehicle technology. How can we make it easier for mechanics to find and diagnose faults?

2. The current model of buying a car is changing as suppliers experiment with different options. We are curious to know what you think the future might look like and how people will choose and buy their transport in the future.

In the spirit of true innovation, participants were also welcomed to bring along their own ideas and problems to work on.

Kicking off with a welcome and rapid pitching and team building on Friday night, the participants bounced ideas off each other and then continued to work on their ideas over the weekend, before presenting their business idea to a panel of judges on Sunday.

In total, six teams formed, and six great ideas were pitched to the judging panel at the end of an action-packed weekend. Two teams tackled the Capricorn challenge and Capricorn looks forward to seeing how these two teams progress their ideas through the dedicated accelerator education programs held at Spacecubed.

Several Capricorn staff volunteered to help run the event and to mentor and advise the teams to help them develop their solutions. Adam Kaye, Capricorn Innovation Manager, attended the event and was also on the judging panel. “It was a really fun weekend, and the energy was high from Friday to Sunday, resulting in some fantastic, innovative ideas,” he said.

“It was amazing to see such participants with diverse backgrounds, including high school students, programmers, engineers, lawyers and serial entrepreneurs. The Techstars weekend environment showed how community, collaboration and diversity work to uncover novel solutions to complex problems.”

FEEL THE NEED, THE NEED FOR SPEEDSTER

The release of the new Top Gun movie this year got us all nostalgic. Not for Tom Cruise’s old face, not for fighter jets, not even for the iconic line “I feel the need, the need for speed”.

No, what we’re chasing down memory lane is Kelly McGillis’s stunning black 1958 Porsche 356 Speedster.

Of course, true fans of Top Gun, and of the 356, will know McGillis’ convertible in the original 1986 film was actually an Intermeccanica replica — with a fibreglass body and the motor of a VW Beetle. We guess the producers spent the budget on the planes. And Cruise.

But the Porsche 356 is a truly classic car and it’s one worth spending some time with while we wrestle with our nostalgia. The lightweight two-door was produced in coupe, convertible and roadster models between 1948 and 1965. The original model was powered by a four-cylinder VW rear engine. Only 76,000 were made, meaning these days these highly prized cars are thin on the ground, in demand, and priced accordingly. According to RACV, a 356 will set you back upwards of A$200,000 at auction, with a particularly scarce 1962 ‘Twin Grille’ roadster fetching $352,000 in 2018.

But at what price, such beauty? There’s no way Tom Cruise even gets out of bed for $352,000.

In 1951 the car won its class at the Le Mans 24 Hours, helping supercharge the 356’s popularity with racing enthusiasts. Over the next few years Porsche redesigned the vehicle, introduced a four-cam Carrera engine, and ramped up production. Over the next decade and a half, four models would be developed and released.

Enthusiasts reckon only about half of the 356s produced still exist. The car’s unibody construction makes restoration difficult, which is problematic in rustprone climates. Little wonder, then, that the 356 is among the most replicated cars ever (it wasn’t just the producers of Top Gun who were at it).

The 356 was eventually replaced by the 901 and, eventually, the faster and heavier six-cylinder 911. So, anyone who falls into the crossover part of the Venn diagram of the Porsche and Top Gun fandoms will have been nodding in appreciation as a 1973 Porsche 911 S coupe appeared on the screen in Top Gun: Maverick. No Kelly McGillis though — the 911 was being driven by Jennifer Connelly. Apparently, the car wasn’t the only thing Hollywood updated. (Kinda weird that Maverick’s girlfriends all drive classic Porsches though, huh? Are we sure he’s not just in it for the cars?)

The new Top Gun movie has been a smash hit, and part of the reason for that is the nostalgia so many people have for the original movie. The new movie honours that by hitting all the familiar notes we want in a new Top Gun movie. In some ways, this is an excellent metaphor for Porsche itself. See a 911 on the streets, in a showroom or at a car show today, and it’s still a thing of beauty that will turn your head. Though the design is modern (and sexy as hell), the silhouette, the shape, the spirit of it harks back to the original 356. (It’s the same thing Tom Cruise is going for with his face, only it has been more successfully executed.)

There’s a very good reason the 356 is a beloved classic. Even after all these years, it can still take your breath away.

– THE RISE OF

ONE

by Paul Marinelli

Oscar Piastri is a name that, up until this year, was virtually unknown by Australian motorsport fans. That has all come to a swift and sudden change with the young Victorian racing driver making world news before he has even raced a Formula One car.

While the world of F1 can be brutal at the best of times, the circus surrounding Piastri’s rise to prominence – including the axing of Daniel Ricciardo by McLaren, a trigger-happy driver announcement from Alpine and some vintage Fernando Alonso bridge-burning – has been especially juicy.

So, who exactly is Oscar Piastri and why has he caused such a stir?

A Meteoric Rise

Australia’s newest soon-to-be Formula One driver is 21 years old and hails from Melbourne. His successful karting career saw him finish third in both the 2015 Australian KF3 Championship and the IAME X30 International Final, along with a storming second place in the National Junior Clubman Championship, among several other race wins and podium finishes.

At just 15 years old, Piastri progressed to international racing cars, finishing fourth in the UAE Formula 4 Championship, with two podium finishes. This effort saw him progress to the British Formula 4 Championship, taking runner-up honours on debut, with six victories, four pole positions, five fastest laps and 15 podium finishes. To say that this was an extraordinary result against some of the best young drivers in the world would be a massive understatement. It was clear that the young Melbournian racer had already placed himself firmly on the radar of people much further up the global motorsport ladder.

Piastri’s next step saw him progress to Formula Renault in 2018, just as his Western Australian compatriot Daniel Ricciardo had done a decade before, a proven Grand Prix winner whom Piastri would spectacularly unseat from his Formula One team within four years. Piastri finished eighth on debut, with three podium finishes, returning in 2019 to win the title, with seven wins, five pole positions, five fastest laps and an impressive 11 podium finishes.

Renault/Alpine: The Next Big Step

Next was a career trajectory direct to Formula One with the support of his family and the Alpine F1 Team who signed up the Australian to the team’s junior driver development program. The Renault-funded Formula One team clearly identified Piastri as a young racer that they could groom all the way to the very top.

Piastri then set out on the final two racing steps before reaching the pinnacle of the sport, the FIA Formula 3 and Formula 2 Championships in 2020 and 2021. Piastri won both categories on his first attempts, competing against the world’s most talented young racing drivers, firmly stamping his place as Australia’s next Formula One driver.

Fast-forward to 2022 and the Alpine team did not have a Formula One drive available for Piastri but retained him as the team’s Official Reserve Driver, while also providing Formula One car and simulator testing opportunities for the Australian during the year.

Piastri’s testing and preparation program also included 3,500 kilometres of testing in a 2021 specification Alpine Formula One car, at circuits located around the world.

Chaos & Casualties Ensue

The surprise departure of double World Champion driver Fernando Alonso from the Alpine team made a 2023 Formula One seat available to Piastri, and the team announced his promotion to full-time F1 driver in August.

As you probably know by now, this is where it all became very messy. Within two hours of the announcement being made, Piastri himself stated via Twitter that the Alpine F1 Team media release had been distributed without his knowledge or consent and that he would not be driving for the team in 2023.

Never before had a rookie driver rejected a major Formula One team debut opportunity like this –although we now know this action was spurred on by the fact that Piastri, who is managed by former Formula One racer Mark Webber, had already signed a deal with McLaren in early July.

Once this came to light, it led to a legal stoush between the two teams over Piastri’s driving services, with Alpine ultimately losing out and having to cough up over $900,000 in legal fees after F1’s Contract Recognition Board ruled against them.

These actions also ensured the fate of fellow Aussie Daniel Riccardo, who was dumped by the McLaren team one year early and at enormous financial expense, to make room for Piastri.

The Weight of Expectation

When Piastri does finally line up on the grid in the papaya-streaked livery of McLaren in 2023, it will mark the most controversial entry to Formula One by any new driver in the long history of the sport.

Despite the tumultuous way that he has found his way into one of the sport’s most successful and historic teams, there is no doubt Piastri has made it to where he is on sheer talent – this is sometimes forgotten among all the madness of his unique and somewhat litigious ascent.

Once he makes his debut, Piastri will become the fourteenth Australian driver to make it to the highest echelon of motor racing since the Formula One World Championship was established in 1950. A mere handful have become Formula One race winners (5) and only two Aussies have become World Champions across more than seven decades.

Let’s see what our latest Formula One ace can do early in the 2023 season when the circus makes its way to Piastri’s home city of Melbourne next April.

State of the Nation 2022

Your finger on the pulse of the Australasian automotive industry.

How does your workshop compare to other workshops of a similar size? Are you paying your staff in line with industry rates? Are other workshop owners facing the same challenges?

How does your workshop compare to other workshops a size? How do you measure success and job satisfaction? Are other workshop owners facing the same challenges?

State of the Nation is your opportunity to find out.

More than 1,900 Members across Australia and New Zealand responded to our 2022 survey, ensuring this third State of the Nation report provides a very credible and useful snapshot of the industry.

Not only is this report filled with stats, graphs, charts and industry info that can help you understand how your business measures up – it also contains lots of practical advice that you can use to meet your challenges and identify opportunities to grow.

Use this QR code to visit the State of the Nation web page, explore more details and download the full report.

Use this QR code below to visit the State of the Nation web page, explore more details and download the full report.

Across Australia and New Zealand, the average business employs 4.4 staff members and has 2.9 hoists (down from 3.2 in 2021). Australian workshops saw an average of 27.3 vehicles a week (down from 30.8 in 2021), while New Zealand operators saw an average of 33 vehicles a week (down from 41.8 in 2021).

An industry snapshot

New faces: the average age of respondents fell by 3 years to 46.5 years old. Distribution: 77% of respondents were from Australia and 23% were from New Zealand.

Our Members at a glance: 89% of respondents ran independent workshops, 64% ran mechanical workshops (down from 72% in 2021) and 74% were the sole decision-makers in their businesses.

Experienced hands: Members have been working in the industry for an average of 22 years and running their own workshops for an average of 14 years .

Vehicle ages: 14% of vehicles serviced are 2019 models or newer, 18% are 2016-18 and 21% are 2011-15.

Positives of working in the industry

Making customers happy continues to be the primary positive of working in the automotive industry, followed by our Members’ love of problem-solving and working with cars.

Happiness

The good news is that 62% of respondents reported that they were either very or extremely happy in their chosen careers. This is fantastic after a couple of difficult, pandemic-affected years. The top reason Members gave for being happy was “I love what I do”.

62% Very / Extremely happy

16% Extremely happy 46% Very happy 31% Moderately happy

5% A little happy 2% Not happy at all

Biggest challenges for Members

Finding time to take a break and maintain a good work/life balance once again topped the list of challenges facing Members. A parts shortage and rising parts prices have also emerged as more significant challenges in 2022.

Having a good work-life balance

Apprentices

38% of Members currently employ an apprentice, and most do so to ‘train the next generation’ and help out with workloads. 35% of Members (an increase of 8% from 2020) also claimed to be very/extremely likely to take one on in the future as the skilled labour shortage continues to bite.

% who have employed an apprentice (2022)

38% Currently employed 26% Previously employed 33% Never employed 3% Not applicable to my type of business 0% I don’t know

Train the next generation

Needed the staff and/or help with workload

Finding good staff

Shortage of parts

Finding time to take a break or holiday Balancing different parts of your role

Increase in parts prices

Plans to grow

42% 39% 31%

plans

grow

business?

No plan

Plan in place

Pass on my skills

Lack of qualified tradespersons available Government rebate / Incentive

73% of Members have a plan in place to grow their business. 40% (up 6% from 2021) plan to do this by increasing workshop capacity. Given the shortage of skilled labour, is this realistically achievable?

What are you intending to do to grow?

Improve business efficiency

Increase profit margins

Employ more staff

Increase the capacity of your workshop

Win more customers

Other

73% Reason for taking on an apprentice

5 Key Takeaways for Auto Repair

Shop Owners

The shortage of qualified technicians continues but Members are taking on more apprentices and there’s a great opportunity to create a more diverse industry to attract new talent.

Both pay rates and labour charge-out rates are up as Members grapple with the skills shortage. But many are still missing opportunities when it comes to calculating margins and mark-ups.

Supply chain issues continue to cause some shortages in spare parts and Members should plan ahead so they’re always prepared.

While Members are generally both happy and optimistic, many still struggle to take a break and maintain their work-life balance. It’s an area that needs real attention.

Members have made a lot of improvements in the past couple of years but there are still plenty of easy wins open to boost profitability and efficiency in most workshops.

Want to learn more? Scan the QR code to visit the State of the Nation web page.

INVESTING IN YOUR STAFF IS THE KEY TO SURVIVAL

With the move to EVs on the horizon, there is no doubting the automotive industry is set for some seismic changes in the coming decades.

That being said, servicing is still the number one income earner for the automotive aftermarket right now, but the business of vehicle diagnostics and repair is changing fast. Problem-solving in modern vehicles bristling with computers and sensors is no longer possible with so-called “traditional methods” or outdated knowledge.

Many workshops lack the equipment, knowledge and understanding to tackle modern-day diagnostics. They practice what is commonly referred to as dartboard diagnostics. ‘Throw another ECU at it’ has regrettably become the diagnostic attitude for many.

Nobody wins in this game. Not only is it a costly solution to any problem, but it will most likely result in the loss of the customer.

Workshop owners who embrace training are the ones who will be able to stay in the game and, through their gained knowledge, will be able to build more profitable and successful businesses.

Those owners who say they are too busy to invest in training or think that they know it all have some very interesting years ahead of them.

How can workshops ensure they are ready to tackle the business of car servicing and repair in the twenty-first century?

Invest In Training Your Staff

Untrained staff translates to poor productivity and poor outcomes for your customers. The investment you make in paying to train your staff will repay itself many times over, especially if you’re one of an increasing number of workshops that is comfortable charging fairly for diagnostics.

While this has been an area of concern in the past, it’s pleasing that our State of the Nation report this year found that an increasing number of Members are investing more in training and keeping themselves up to speed with new technology in vehicles.

That being said, it’s important never to become complacent. Training isn’t a “one and done” type affair. As vehicles continue to involve, individuals will need to undergo ongoing training to ensure that they’re able to keep up with the increasingly rapid pace of change.

Get The Equipment You Need

There is no point in investing in training courses if the workshop doesn’t then invest in the appropriate equipment and data resources to tackle the job.

Providing service know-how for thousands of vehicles, Capricorn Service Data is an exclusive Member benefit and a powerful tool for any automotive business. If you haven’t checked it out already, make sure you do so today.*

Set Training Goals

Set a goal that all appropriate staff should complete a certain number of training hours every year. The successful completion of training could be part of regular performance reviews, be a condition for ongoing employment or be a determining factor in receiving an annual bonus.

Discuss Diagnostics And Solutions As A Team

Make it a habit to casually discuss diagnostics and solutions during toolbox meetings and tea breaks. And once a diagnostic job is resolved, ask the team to discuss the solution so that the knowledge is shared with all employees.

Here’s the challenge – identify your training needs and start investing in your staff and business. It will cost you money, but nowhere near as much as the cost of keeping untrained staff on the payroll.

* Capricorn Service Data is provided through a third party service provider and is subject to terms of use that can be located at www.capricorn.coop/terms-conditions

WIN A $200 BBQ MEAT COLLECTION THERE’S TWO TO BE WON IN NOVEMBER

HATE WASTING TIME AT THE SUPERMARKET?

WE HAVE SOME GOOD NEWS FOR YOU!

At Capricorn, we’re all about making life better for our Members. That’s why we’ve partnered with Woolworths to offer Woolworths at Work — the easier, smarter, and healthier way to shop for all your workshop needs online.

Whether it is coffee and snacks to keep your team going, stationery to keep the office organised, or cleaning products to keep your workshop tidy, Woolworths at Work has you covered.

Easier

•Personalised website packed with timesaving features

•Free next-day delivery on orders over $99*

•Click and collect option available.

Smarter

•Business-friendly products at great prices

•Earn 1 x Capricorn Rewards Point on every $1 spent.**

•Consolidate your shopping expenses into your monthly

•Capricorn statement.

Healthier

•A range of healthy options to keep your team going

•Great quality fresh produce.

*In non-remote areas. Excluding same day delivery and crowd delivery partners.

**Participation in the Capricorn Rewards Program is subject to the Capricorn Rewards Terms and Conditions which can be found at Capricorn.coop/tc

Since launching in 2021, we’ve been working hard to make Woolworths at Work even more beneficial for our Members.

There are now over 23,000 products available, so if you need it, chances are it’s available online and at a great price.

Plus Members now have the option of linking multiple addresses to their account so you can choose where to have your shopping delivered.

So, if you’re registered but haven’t used the service in a while, it’s definitely worth taking another look.

If you aren’t registered, don’t worry! It only takes a few minutes to sign up. Head to your myCAP Portal and fill out the form in the “Woolworths at Work” tab. From there, Woolworths will reach out to help you set up your account so you can get shopping!

Once that’s done, you can look forward to spending less time struggling to find things at the supermarket and more time working on your business (or putting your feet up).

capricorn.coop/tc.

PREFERRED SUPPLIER PROFILES

HM GEM ENGINES NSW/ACT, QLD, VIC/TAS, SA/NT hmgem.com.au

HM GEM Engines has been in continual operation since 1968 and has grown to become an industry leader in engine reconditioning and rebuilds for clients across Australia. With established reconditioning facilities across Sydney, Melbourne, Brisbane, and Adelaide, they are uniquely positioned to provide quality supplies and services for a large client base in a range of essential industries. With access to nine machine shops across the country, they can provide a selection of services, such as cylinder head and engine reconditioning, as well as diesel engine rebuilding. The HM GEM team of diesel engine rebuilders possesses years of experience, equipping them with the necessary skills and abilities to guarantee an exceptional level of quality for engine reconditioning services, no matter how large or small the job.

UNIQUE AUTO PARTS

QLD, VIC/TAS

uniqueautoparts.com.au

Opened in 1995, Unique Auto Parts has evolved into one of the largest suppliers of European spare parts in Australia. They stock a full range of new parts for Mercedes Benz, BMW, Audi, Seat, Skoda, Mini, Peugeot, Renault, Volkswagen, Citroen, Porsche, Volvo, Alfa Romeo, Land Rover and Fiat. Available parts include filters, brake components, engine components, mounts, steering and suspension components, oils and lubricants, cooling components, car care products and so much more for passenger and commercial vehicles. By using their own fleet of delivery vehicles with no set run times, Unique Auto Parts can take orders throughout the day and send them out with the next available driver. They pride themselves on offering customers a truly unique experience with phone staff that comes from mechanical backgrounds and are knowledgeable in varied areas and specialties.

14 YEARS PREFERRED SUPPLIER

16 YEARS PREFERRED SUPPLIER

TURBOCHARGERS

NSW/ACT, QLD, VIC/TAS gcg.com.au

GCG Turbochargers Australia was formed in 1979 for the express purpose of sales and service of turbochargers direct to the Australian aftermarket. GCG specialises in the sales, service and repair of turbochargers and associated components across a wide range of manufacturers and internal combustion engines. With over 22,000 products available online and a number of inhouse services, they work with global brands — such as Garrett Motion, BorgWarner, Mitsubishi and IHI Turbocharger — that can attend to OE replacement, performance, marine, transport and off-highway machinery markets. They can offer a cost effective solution for turbocharger needs by selling the OEM product direct from the manufacturer. GCG technicians have the latest industry training and years of experience backed by quality service equipment, systems, and quality components.

POWER WINDOWS PLUS QLD

powerwindowsplus.com.au

Mercedes-Benz Geelong is an award-winning dealership, which has operated in Geelong for 42 years and is one of the largest regional dealerships in Australia. The new state-of-theart showroom is complemented by a well-equipped service centre, with the latest in diagnostic technology and a fully stocked parts department. Their parts team offer an extensive range of Mercedes-Benz Genuine Parts and Accessories for both passenger cars and vans. The company employs leading edge production technologies and strict testing procedures to deliver optimum results. The sales team is familiar with all details of each part and are the people to talk to when it comes to trade business, offering everything from expert assistance in identifying parts to sourcing them quickly and offering tips on installation.

JAPANESE TRUCK & BUS SPARES

WA

jtbspares.com.au

Japanese Truck and Bus Spares (JTB) is a WA-owned and operated business in operation for almost 30 years. JTB specialises in supplying high-quality parts to suit Hino, Isuzu and Fuso. They carry over 18,000 new, used and reconditioned Japanese spare parts, with new parts arriving every day. Beyond its large stock, JTB’s experienced team has over 250 combined years’ worth of Japanese truck and bus knowledge and they will ensure you get the right parts as quickly as possible. Since opening in 1993, JTB has prided itself on always going the extra mile to help its customers and on having a great customer service reputation. Japanese Truck and Bus Spares is committed to providing the highest quality replacement parts, efficient and professional customer service, product advice and after-sales backup to their customers.

10 YEARS PREFERRED SUPPLIER

16 YEARS PREFERRED SUPPLIER

TIME TO GROW YOUR WORKSHOP?

Exclusive to Capricorn Members, CAP ezi-finance gives you one less thing to worry about when you’re focusing on your business. Our hassle-free application process makes it quick and easy to arm your workshop with everything you need to grow.

Drive your business forward with CAP ezi-finance. Talk to your Area Manager or contact Capricorn today.

• Zero setup fees and industry-competitive rates.

• Quick and easy to apply - we already have your information on hand.

• Dedicated team to support you throughout the process.

• Earn Capricorn Rewards Points.

CAPRICORN

LAST MONTH’S WINNERS

1st

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

LAST MONTH'S ANSWERSLAST MONTH'S ANSWERS

Find the 15 words hidden in the jumble. They could be horizontal, vertical, diagonal or backwards. See if you can find them all!