Ignition Magazine Australia | October 2023

OCTOBER 2023

SURVIVAL TIPS FOR THE SKILLS SHORTAGE ERA Finding and holding onto skilled staff is more important than ever.

CLASSIC/MEMBER RIDE: DATSUN 1200 The Sunny side of the street.

CALENDAR of events Victoria

South Australia

New South Wales

Gala Dinner & Tradeshow 11 November 2023

Vailo Adelaide 500 23-26 November 2023

Gala Dinner & Tradeshow 09 December 2023

Gala Dinner & Tradeshow 02 December 2023

STAY TUNED! Log in to myCAP to check out all the upcoming events or for further information please contact our Events team.

cap.coop/events

1800 327 437

events@capricorn.coop

GOT A SPANNER IN THE WORKS?

TM

At Capricorn Risk Services, we know how important your business is to you – and how essential it is to have the right risk protection when unexpected problems arise.

For risk protection you can trust, talk to our expert Risk Services team today.

capricorn.coop

WE’VE GOT YOU COVERED

1800 007 022

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). Capricorn Mutual Ltd has published a Target Market Determination for its protection which is available at www.capricorn.coop/about/capricorn-mutual

CONTENTS CONTENTS FEBRUARY2023 OCTOBER 2023

David Fraser Group CEO

CEO’s message

4 20 YEARS OF

CAPRICORN MUTUAL

Celebrating two decades of protecting Members.

6 CREATING MEMBER

Instinctually, mechanics problem-solve. It’s central to the profession. People come to you with an issue and it’s your job to fix it—to get their car back on the road and to send the customer away happy.

WEALTH WITH CAPRICORN

Many problems require methodical diagnosis and precision fixes. Others require more inventive but no less effective solutions (I’m reminded of the guys on the iconic ABC TV show Bush Mechanics, who fixed a flat tyre by stuffing it with spinifex grass).

8 SURVIVAL TIPS FOR THE

As I write this, our industry is grappling with a problem that requires both a specific and an innovative response if we’re to solve it. Of course, I’m talking about the skills shortage. According to our friends at the Australian Automotive Aftermarket Association, Australia alone is some 25,000 to 30,000 technicians short right now.

Anecdotally, our field team has heard countless stories from Members about their struggles to find the qualified technicians their businesses need to operate.

Over the winter months, Capricorn surveyed over 1800 Members across Australia and New Zealand in a bid to understand this problem in more detail. The result is the State of the Nation Special Report: The Skills Shortage. In this special report, we’ve focused entirely on one issue which reveals, in detail, the scale of the skills shortage problem we face.

More than half of Members (51%) said finding good staff was their biggest challenge to running their business (up from 39% in 2022). Just 44% of Members said they were adequately staffed. The lack of qualified staff was seen as the biggest challenge for the industry overall (61%, up from 50% in 2022).

Unsurprisingly, Members reported this shortage having a big impact on their businesses, with commercial truck, panel and paint, tyre and suspension and larger workshops (with more than five technicians) most affected. A backlog of jobs, increased pressure, longer hours, longer turnaround times and reduced productivity were all common consequences of this skills shortage.

But it’s far from all doom and gloom. The report also reveals the positive steps Members are already taking to resolve the skills shortage problem where they can.

The number of Members who have ever employed an apprentice is up from 64% in 2022 to 73% in 2023, helping secure the industry’s pipeline of talent. There are also other solutions we’re yet to embrace, including sponsoring the immigration of skilled workers. State of the Nation Special Report: The Skills Shortage will look at this option in detail, too.

While the skills shortage is an issue that’s still with us, the problem has been diagnosed and, all across the industry, Members are working to fix it—because that’s what we do when we see a problem!

You can dive deeper into our findings on the skills shortage in this edition of Ignition, and through the State of the Nation Special Report: The Skills Shortage website at cap.coop/son-23.

Here are the FY2022-23 results.

SKILLS SHORTAGE ERA

Finding and holding onto skilled staff is more important than ever.

10 SAVE MORE ON FUEL With the WEX Motorpass Driver App.

12 STATE OF THE NATION SPECIAL REPORT: THE SKILLS SHORTAGE

An in-depth report on the industry’s most important issue.

16 CLASSIC/MEMBER RIDE: DATSUN 1200

The Sunny side of the street.

20 MANAGING

CUSTOMER EXPECTATIONS

Happy punters are vital, even when dealing with the skills shortage.

22 HALF A CENTURY IN COLLISION REPAIR Larry’s lessons from five decades in the industry.

25

2023 ROLEX MONTEREY MOTORSPORTS REUNION Laguna Seca Raceway gets a blast from the motorsport past.

David Fraser Group CEO 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.

CAPRICORN IGNITION OCTOBER 2023 3

20 TM

Celebrating

years

of protecting Members!

In 2023, CML celebrates its twentieth birthday. Over the past two decades, CML has grown to protect over 11,000 Members — about 42 per cent of Capricorn’s overall membership — and has paid back almost $500m in claims.

4 CAPRICORN IGNITION OCTOBER 2023

0

T

wenty years ago, small businesses in Australia’s automotive aftermarket had a big problem—it was becoming more difficult, and more expensive, to get insurance.

In the wake of the September 11 terrorist attacks on New York’s World Trade Center and the collapse of HIH Insurance in 2001, the global insurance industry’s appetite for risk had radically shifted. Within two years, the situation had become untenable. Capricorn decided to step in, establishing Capricorn Mutual Limited (CML)—a discretionary mutual that could provide an insurance-like product, called risk protection, to Members. That first year CML collected $2.2 million in contributions from 1,000 Members. To put that into some perspective, there are now over 11,000 Members who contributed $122 million in the last financial year alone.

CML is now in the top 50 providers of protection or insurance in Australia. Over the past 20 years, the mutual has written about $875 million in protections and has paid out more than $465 million in gross claims— including $150 million in the last two years, when a large number of Members were hit by natural disaster events.

CML’s purpose is to support Members in their time of need. For example, the 2022 East Coast flood catastrophe was Australia’s largest insurance event on record, with water rising more than 19 metres in some areas and causing more than $6 billion in damages across 230,000 claims. During this time of disruption and upheaval, CML was there, helping over 200 Members to the tune of $37 million in claims payments to keep businesses alive and get Members back on their feet. It also paid a further $5 million to New Zealand Members who were affected by back-to-back catastrophes earlier this year that saw them affected by flooding, landslides and cyclone damage.

Rod Scanlon is the CEO of Capricorn’s Risk Division, which includes CML, Capricorn Insurance Services, Capricorn Risk Services and Capricorn Mutual Management.

He said while CML was created at a time when Members were finding it really difficult to get affordable insurance, the mutual has evolved to meet the specific needs of businesses operating in the automotive aftermarket.

“We provide a product that meets our Members’ modern day needs, while staying true to our founding principles, and it is this that has ensured we stayed relevant,” he said.

“I think we’re also a bit of a shining light in terms of how good mutuals can be run, and we are very proud of that. We recently took part in developing and signing up to an industry code of practice which outlines what a good, sustainable mutual looks like. We’ve got a very strong balance sheet, which means Members can be assured that we have the scale to pay for losses like the big East Coast floods in 2022. Even after returning almost $40 million back to our Members impacted by those floods, our balance sheet, our financial position, has never looked stronger.”

This financial strength also gives CML the opportunity to return excess capital back to Members in the form of a Loyalty Rebate. In 2021, CML returned its first rebate to Members to the value of AU$6 million.

In 2022, Members shared another AU$4 million rebate.

Being a mutual, keeping Members’ interests first, means CML only takes what it needs and can return what it doesn’t.

Rod became CEO of Capricorn Risk Services in February this year, after originally joining Capricorn in December 2021 as Head of Finance and then spending some time as acting CEO. He’s spent more than 20 years in the insurance industry, including 11 years at Suncorp and he has a lot of experience when it comes to providing protection to people’s businesses, homes, vehicles and other valuables.

“The thing you immediately see (moving from traditional insurance to a mutual) is that at a mutual you’re 100 per cent centering on what’s best for the Member,” he said. “That’s not just around claims time, that’s also about how we design our products and making sure that our Members have every confidence that the products we are providing to them meet their needs and know we’re there for them if anything goes wrong.”

As CML celebrates two decades in operation, Rod said the team is not resting on its laurels.

“Looking forward, our product will continue to evolve,” he said.

“We issued a new Product Disclosure Statement in May this year which included six new product offerings for Members. These are things like choice of repairer and hire cars after incidents. We’re making a lot of changes to keep pace with the market and improve our offering.”

The team is working on changes in technology, too.

“We’re looking to improve our digital offering, so that in the future Members can adjust their policies and lodge a claim digitally 24 hours a day.” Rod said. “We think that can add real value to Members by improving our digital offering, as we're all time-poor, and removing the need to communicate with us via phone will make things easier and more convenient.”

To find out more about how Capricorn Mutual can help you, please contact your local Risk Account Manager, or call us today on 1800 007 022

Products sold through Capricorn Risk Services Pty Ltd (ABN 91 111 632 789) 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). Capricorn Mutual Ltd has published a Target Market Determination for its protection which is available at capricorn.coop/about/capricorn-mutual.

1

Creating Member Wealth with Capricorn As a Member-based organisation, our results are your results and we're excited to share them with you.

6 CAPRICORN IGNITION OCTOBER 2023

For the industry, the past year has been one in which many of us have felt the crunch of the ongoing skills shortage. There simply aren’t enough qualified technicians to go around.

But while that has been a major challenge, it has been inspiring to see the way the industry has responded over the past twelve months. We’re hiring more apprentices now than we have in recent years, helping bolster our pipeline of future talent.

In Australia, hopefully, the Federal Government’s decision to include a range of automotive trades on the Apprenticeship Priority List (lifting the direct payment received by automotive apprentices from $5,000 to $15,000) will help boost numbers even further.

Bringing new people into the industry, and training them, is the best way to solve the skills crisis. But there is still an immediate shortage of skilled technicians, which is why Capricorn has welcomed some new Preferred Suppliers in the past year who can help Members bring in qualified technicians from overseas.

Those Members who have already taken advantage of these services report they have been a great success. It won’t be the right solution for every workshop, but if you need qualified technicians, we suggest you use the Purple Pages to explore this option. Not only could this benefit your business, but it could also benefit the automotive industry as a whole.

The other big takeaway from the past year is the faith Members have in their own businesses. We’re seeing Members investing in equipment and improvements to their workshops.

There’s a sense of optimism about the future. We’re seizing the opportunities in front of us.

Demand from Members for Capricorn’s services has been exceptionally strong this year—and as a cooperative, our results are a direct reflection of the activity in the wider industry. If Capricorn is doing well, Members are doing well.

As a Member-based organisation, our results are your results and we cannot wait to announce them.

Member purchases from Preferred Suppliers reached $3.40 billion this financial year, up 16% in 2022.

Capricorn’s overall profit after tax was $31.0 million.

More than $50.1 million in Capricorn Rewards Points were earned, and a Trade Rebate of $17 million was paid to Members for Trade Account purchases made throughout the year. This rebate will be issued as Bonus Rewards Points on Members’ September 2023 statement.

In calculating the value of our returns to Members, Capricorn considers both monetary and non-monetary benefits. We call it “Member Value Return” or MVR. In 2023 we returned $82.8 million in value to Members (up from $63.3 million in 2022) which equates to an MVR of 26.7%. That means for every dollar invested in Capricorn, Members received a 26.7% return.

The Board has declared an ordinary dividend of 7 cents per share in relation to the year ended 30 June 2023. During the FY23 year, $9.9 million was distributed to Member shareholders by way of an ordinary dividend of 5 cents per share in relation to the year ended 30 June 2022.

Capricorn’s protection division also had another year of strong growth.

Capricorn Risk Services wrote $121.9 million in gross protection for Capricorn Mutual Limited.

In the last financial year, Capricorn Finance assisted Members by providing $49.8 million in loans, up from $33.01 million in 2022. What’s so deeply satisfying about this figure is it shows Members investing in the future of their businesses.

Finally, in 2022-23 Capricorn Travel booked $6.6 million in holidays during the year. This business unit was hit hard by the pandemic, so it’s great to see it picking up again as Members book well-earned breaks.

Looking to the year ahead, we see a mixture of challenges and opportunities. There are some economic headwinds, with uncertain interest rates, inflation and a higher cost of living. We’re probably heading into a period where customers have less disposable income and stretch out their servicing or become a little more price-sensitive. The good news is when customers are feeling the pinch, they usually put off buying a new car and spend money keeping their existing car safe and reliable.

Whatever happens, we’ve seen how resilient our industry can be— and Capricorn will be right there alongside you to help your business thrive. We are always stronger together.

This month, Capricorn shareholders will receive their Capricorn Wealth Certificate. This certificate outlines the Capricorn Rewards Points, dividends and Trade Volume Rebate received over the past 12 months.

Members will be notified when their Wealth Certificate becomes available and can access it by logging into myCAP using their shareholder number.

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

The past performance of Capricorn is no indication of future returns.

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 made in, or accompanied by, Capricorn’s Prospectus and any Supplementary Prospectus which is available on request or may be viewed at capricorn. coop under “Corporate Documents.” Before making any decision to apply for shares you should consider the prospectus and any supplementary prospectus. Any application for shares must be made on the application form in or accompanying the Prospectus. * Participation in Capricorn Rewards is subject to the Capricorn Rewards Terms and Conditions which can be found at cap.coop/tc.

CAPRICORN IGNITION OCTOBER 2023

7

Survival tips for the skill shortage era

by Jeff Smit

Finding and holding on to skilled staff is a difficult chore at the best of times, but having to do it in the middle of a severe skilled labour shortage is forcing workshops to rethink their recruiting process and devise better ways to deploy the skills of existing staff.

S

kill shortages in the auto aftermarket sector have worsened since the COVID years and no solutions are in sight. Border restrictions have made sourcing skilled technicians from other countries difficult and costly.

There are a few things a workshop needs to do to ease the strain on the business and ensure that it is getting the best out of existing staff levels.

Begin with your business model – identify the best direction for your future business, using the skills it currently possesses. This might involve serious training and technician upskilling, but before rushing headlong into this, the training chosen must match the future goals of the business for up to five years.

For example, workshops that see their role in electric and hybrid vehicle maintenance and repair would need to invest in specific training on electrics and hybrids. There are many specialised areas in automotive, but workshops need to first identify their current skills and culture to get the best out of the speciality they choose for the future.

8 CAPRICORN IGNITION OCTOBER 2023

In times when skilled staff become almost impossible to find, downsizing or streamlining the business might result in a more profitable and easier-to-run operation.

In the meantime, the skills of current staff need to be looked at more closely and applied as effectively as possible. This process begins with a detailed review of the strengths and weaknesses of technicians and senior staff who are the main generators of income. Be on the lookout for situations where skills are being wasted – such as the head technician working on jobs that could be delegated to a non-skilled worker or an apprentice without sacrificing quality.

Head technicians should be reserved for highly technical and complex diagnostic tasks, leaving the more general routine work to general staff or apprentices. To make this arrangement work for the bottom line, it is best to avoid adopting just one flat labour rate for all work performed in the workshop.

The more technical and complex jobs, including diagnostics, should be charged out at a higher rate than routine repair work. This generates the income that can then justify an appropriately higher rate of pay for the top technicians – this in itself can be part of your plan to retain good staff in times of labour shortages.

Chores that don’t require the skills of a qualified technician, like cleaning, filing, book work or washing cars could be delegated to casual labour engaged for a few hours every day – hours that might suit someone who doesn’t want or need a full-time job.

The plan is to free up everyone in the workshop with a specific skill to get on with the productive work that pays the bills and generates profit.

Such people can often be more quickly trained in the ways and culture of the business.

The skills shortage is real and it won’t be quickly fixed. Workshop owners and managers need to think outside the box and embrace new ways of doing things. The trade has changed dramatically over the past decade.

Maybe workshops need to change the way they do business as well.

Regardless of any of the above strategies, a workshop may be suffering through having a skill gap in the staff, perhaps to the extent that the only way to restore overall profitability demands hiring new staff.

In this difficult labour market, don’t expect the highly trained expert you need to just be waiting for your ‘help wanted’ advertisement to appear.

New staff members don’t have to be the perfect fit, especially if your workshop has an effective learning and development program in place.

Applicants with a good attitude and a willingness to learn could very well turn out to be just as effective as those with one hundred per cent of the appropriate skills. There can also be advantages in hiring candidates with little experience but plenty of knowledge and a bright personality.

CAPRICORN IGNITION OCTOBER 2023

9

TM

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1 0 CAPRICORN IGNITION OCTOBER 2023

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*Capricorn Fuel Card is provided by WEX Australia Pty Ltd (ABN 68 005 970 570) in association with Capricorn Society Limited (ACN 008 347 313). Applications are subject to Capricorn’s credit assessment criteria and Capricorn WEX Motorpass terms and conditions apply and are available at capricorn.coop/tc. Login to the Capricorn website and visit Fuel Cards to find the full list of eligible sites that are part of the WEX Motorpass network. A $4.50 (ex GST) monthly card fee applies. Surcharges may be changed by some service stations.

For full Capricorn WEX Motorpass Card Terms and Conditions visit cap.coop/tc App Store is a trademarks of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.

CAPRICORN IGNITION OCTOBER 2023

11

1 2 CAPRICORN IGNITION OCTOBER 2023

SPECIAL REPORT

Finding good staff is a challenge for more than half of all Capricorn Members — up 12 percentage points in the past year. That’s the big take-out from the State of the Nation Special Report: The Skills Shortage.

O

ur last State of the Nation report revealed that attracting and retaining qualified staff were major challenges industry wide.

We also know from our conversations with Members that staff have been hard to find. We hear and share your struggles every single day. Research by our friends over at the Australian Automotive Aftermarket Association, released earlier this year, suggests there’s a shortfall of 25,000 to 30,000 technicians across the Australian automotive industry alone.

That’s why we chose to research and prepare this special report - to delve more deeply into the issue. We wanted to develop a better understanding of the nature of the skills shortage in the automotive industry. We also wanted to better understand how it’s impacting our Members and provide some analysis and advice on how to deal with the challenges that it presents.

Our sense was that the situation has been getting steadily more difficult — and this report backs that up. Across Australia and New Zealand, it’s taking an average of almost seven months to fill a vacancy for a qualified mechanic, almost nine for a panel beater or spray painter and closer to 10 for a qualified electrician in NZ. By a significant margin, Members said the lack of qualified staff was the biggest challenge facing the industry as a whole (61 per cent, up from 50 per cent in 2022).

Just 44 per cent of Members said they were adequately staffed, a third were looking for staff and a quarter said they had unfilled positions.

Next on the list of challenges was attracting young people to the industry (45 per cent, up from 36 per cent in 2022).

And here, we have some positive news to report: the industry has responded to the skills crisis by taking on more apprentices. Almost threequarters of Members said they had employed an apprentice, up from less than two-thirds in 2022. That’s a big leap and it’s good news for the industry’s pipeline of talent. However, there’s still work to be done: 57 per cent of Members also reported having lost an apprentice before they completed their trades qualification.

State of the Nation Special Report: The Skills Shortage also investigated another major opportunity, sponsored immigration. Only a third of Members had considered importing qualified technicians from overseas, with large businesses and panel and paint shops most likely to consider the idea. The main barrier to entry is the sense the process is likely to be complex.

Overall, despite the skills shortage, Members were very confident about the future of their businesses—which reflects the passion and resilience we see every single day.

Want to learn more? Check out the interactive report website by using the link or QR code below!

You can read State of the Nation Special Report: The Skills Shortage at cap.coop/son-skills

CAPRICORN IGNITION OCTOBER 2023

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Biggest Challenges Biggest challenges to running an automotive business 2023 Compared to last year's data, the biggest increases were all in areas directly related to the skills shortage:

Finding good staff

51%

Having a good work/life balance

43%

F inding good staff: up from 39% to 51%.

F inding good apprentices: up from 14% to 22%.

Finding time to take a break or holiday Increase in parts prices

26%

Balancing different parts of your role

25%

Shortage of parts

24%

Keeping staff long term: up from 9% to 16%.

Many Members also said the skills shortage was adversely affecting their work-life balance and their ability to take a holiday.

41%

What’s the good news?

T he impact of the parts shortage is easing, down from 31% in 2022 to 24% this year.

Finding good apprentices

22%

T he lingering effects of Covid are almost out of the system, down from 18% to 6%.

Resourcing and Hiring Talent Capricorn talent resourcing status These results highlight one of the major impacts of the skills shortage: it’s harder to find skilled staff today than it was even a year ago.

Other findings highlight that the situation is worse for some business types. Collision workshops, in particular, are struggling to find staff. And the bigger the business, the harder it is to find skilled staff.

In terms of time to fill vacant positions, it takes an average of 6.9 months to recruit a qualified mechanic, 8.6 months to recruit a heavy diesel mechanic, 8.8 months to recruit spray painters and panel beaters and 9.2 months to recruit estimators.

33% 32%

I am currently looking for staff

I have unfilled staff positions

24% 24% 15% 44%

None of above – adequately staffed

What’s the good news?

4 4% of Members say they’re adequately staffed, which demonstrates that not everyone has been negatively impacted by the skills shortage.

You can read State of the Nation Special Report: The Skills Shortage at cap.coop/son-skills

1 4 CAPRICORN IGNITION OCTOBER 2023

43%

I am struggling to find skilled staff

2023

54%

2022

Apprentices Lost an apprentice before they complete their apprenticeship

43%

43%

40%

44%

40%

29%

49%

35%

52%

42%

57%

57%

60%

56%

60%

71%

51%

65%

48%

58%

Total

AU

NZ

Collision

Auto Electrical

Mobile Mechanic

Tyre & Suspension

Other

Mechanical Commercial Workshop Truck

Yes, lost apprentice

No, did not lose apprentice

Training apprentices isn’t a quick fix to the issues thrown up by the skills shortage, but it is a solid path towards securing the long-term future of our industry. However, 57% of Members reported having lost an apprentice before they completed their apprenticeship. Members also now see automotive apprenticeships as even less attractive than apprenticeships in other industries.

What’s the good news?

The proportion of Members that report having employed an apprentice is up nine percentage points to 73%.

8% of Members said they took on an 5 apprentice to help with their workload.

40% of Members were very or extremely likely to hire an apprentice in the future,

Skilled Worker Migration

up from 31% last year.

Barriers preventing the immigration of a skilled worker 5% 24%

25%

13%

36% 35%

15% 27%

25% 39%

35%

33%

31%

40%

40%

38%

36%

26%

30% 38%

51% 35%

29% 33%

62%

Total

61%

Mechanical Workshop

68%

Collision

77%

78%

Commercial Tyre & Truck Suspension

59%

Auto Electrical

53%

Mobile Mechanic

Bringing in skilled labour from overseas is one way to tackle some of the effects of the skills shortage in the short term. However, only a little over a third of Members have considered pursuing this option to fill a vacancy, with many identifying barriers involving the complexity of the process, the cost and housing/accommodation requirements.

What’s the good news?

Members have reported having positive experiences sponsoring the immigration of skilled workers.

61%

Other

“I have sponsored skilled workers in the past and I have not encountered any barriers.”

- Capricorn Member, Victoria

Other Cost Housing/accommodation requirements The process is too complex

“I currently employ three skilled migrants, with another two arriving soon!”

-Capricorn Member, Victoria

1 5O RCNAIPGRNI C R N IOGCNTIO TB IO O0C2T3O B1 5 ER 2023 CAPRIC I TOI O EN R 2

CLASSIC/ MEMBER RIDE:

DA DATSUN TSUN 1200

THE SUNNY SIDE OF THE STREET.

1 6 CAPRICORN IGNITION OCTOBER 2023

N N

CAPRICORN IGNITION OCTOBER 2023

17

DA 120

1 8 CAPRICORN IGNITION OCTOBER 2023

A TSUN 00 he year is 1970. John Newcombe beats Ken Rosewall in an all-Australian men’s final to win Wimbledon. Johnny Farnham tops the charts for seven weeks with “Raindrops Keep Falling on My Head”.

Aussies flock to the cinema to see Mick Jagger playing the bushranger Ned Kelly. At Bathurst, the second-generation Datsun Sunny, the Datsun 1200, roars to victory in Class A at the Hardie-Ferodo 500.

Half a century later, most of those iconic performances are now long forgotten. But Mick Jagger is still going, and so are a handful of Datsun 1200s—including one that has been lovingly restored, and is still raced, by Capricorn Member and Preferred Supplier Anthony Norris of Grand Auto Wreckers in Lonsdale, Adelaide, South Australia.

It’s a wrecking yard specialising in Nissan parts—and, of course, in parts for the Datsun makes that preceded them before the name change of the 1980s.

“I’ve always had a big passion for Datsuns, I’ve got several of them,” Anthony said. “I started off doing sprints in a Datsun 1600 (in the late 1990s) and I thought, before I bingle this car, I better buy something I can get aftermarket parts for—fronts, guards, bonnets, stuff like that.

“That’s how I bought the little Datsun 1200. I found it in Queensland about 10 years ago. It had been used as a hill climb car. My father went up from Sydney to pick it up for me, then we went through getting it all stripped down and acid dipped. Then we built it up from scratch. I gave it to MSR Motorsport and he built a proper race car, with nice power-to-weight, and I just go out and enjoy it and have fun.”

The original Datsun 1200 had an economical 1.2-litre A12-series engine and MacPherson strut front suspension with optional disc brakes. They were once a familiar site on the roads of Australia and New Zealand and were a competitor vehicle to the Toyota Corolla.

The first-generation Sunny debuted in 1967 but with its 1000 cc engine, was pipped in terms of power by the Corolla’s 1100 engine. The new 1970 Sunny was set to turn the tables on Toyota—except Toyota released 1400 and 1600 cc Corollas the same year! This spirit of competition was never more obvious than on the racetrack. Shannon’s Club writer Mark Oastler described the Sunny’s 1970 Bathurst appearance as a “sparkling” debut “back in the days when the race was held for massproduced cars in (supposedly) stock standard showroom trim”.

“After 500 miles (800 km) of hard racing, the worksentered Datsun 1200 driven by Barry Tapsell and John Leighton emerged as the Class A winner in its first attempt.”

Competition remained fierce in the ensuing years, with the Sunny winning but subsequently being disqualified in 1971 and winning after Mazda was disqualified in 1972.

1973 was the year Bathurst switched from 500 miles to 1000 kilometres. Classes changed and the Datsun Sunny fell afoul of the four-year model limit rule, so the Nissan factory in Japan shipped out a Datsun 1200 two-door coupe, to race at the Sandown 250 and Bathurst 1000.

Writing for Shannon’s, Mark described the final minutes of a fiercely competitive race: “When the chequered flag fell after 143 laps (20 laps behind the outright race winner), the works Datsun 1200 was still on the same lap and less than a minute ahead of the second-placed Fiat it had fought so hard with all day.

And this was after more than seven hours of racing!

Incredible.”

It’s the coupe model, the star of that 1973 Bathurst, that Anthony races in Improved Production (IPRA) races around South Australia today. It is running an SR20 turbo, out of a late model Nissan Silvia.

“On an Improved Production car, you’re not allowed to play with the firewall, which is where your pedals are connected, and your rad support,” Anthony said. “That’s all got to be standard.

“And the front suspension’s more or less got to be standard. But there are some changes from some modification, as in you can put bigger brakes on and front and rear. So, I’ve got Skyline brakes all round.”

Anthony is a second-generation racing driver. His father, Jim Norris, is still doing hill climbs in his 80s. It was Jim who convinced Anthony to race.

“I’ve been around to most tracks in Australia and I’ve done the Nissan Datsun Nationals,” Anthony said.

“Being a sponsor of all the nationals, I try and take one car and just enjoy myself once again and sometimes win it outright. It puts a smile on my dial because it’s always good to go to an event and win it as well as sponsor it.”

As someone who loves racing, hasn’t Anthony been tempted to race something with a bit more power?

“I did my trade at Adelaide Engine Service as an engine reconditioner, and everyone was into their V8s, like the Chevy V8s, the Ford V8s,” Anthony said. “I was always a four-cylinder man, and I knew that Nissans were pretty switched on with their technology. So, I focused on the little four-cylinders. I used to drag race back in the day in my 1600 and show all the V8 boys, ‘Look, see, a little Datsun four-cylinder can beat a V8’. Wind the boost up, and I had a 1600 doing elevens at one stage!”

The Datsun name might have disappeared from our roads, and the Sunny’s glory days at Bathurst might be long behind them, but it’s great to see this once popular small car still has a fanbase, and is still putting in winning performances on the track.

CAPRICORN IGNITION OCTOBER 2023

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Capricorn’s expert guide to managing customer expectations The automotive industry’s skills shortage is having a serious impact on our ability to run our businesses optimally.

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E

ighty-two per cent of Members told State of the Nation Special Report: The Skills Shortage it had resulted in an increased workload and a backlog of jobs. Most Members said they were working longer hours, turning away customers and doing fewer jobs.

So, how do we keep customers happy at a time of long delays and expensive labour costs? We asked Perth-based customer service expert and author of All-In Culture Chris Smoje for some practical tips for managing customer expectations.

Your attitude is critical Chris’s first piece of advice was to not fall into the “it is what it is” trap.

“The skills shortage is an industrywide problem so it’s easy to think the customer has no choice because they’ll never find another mechanic anywhere else,” he said.

“In reality, the customer still has lots of choices and we really need to show them we’re keen to keep them as customers.”

Communicate early, clearly and proactively

Ask your customer what’s really important

Chris said while you might be well aware of the skills shortage and its impact on your business and the wider industry, you can’t assume your customer is.

Chris said sometimes when you can’t give your customer the top-shelf service they’re used to, and you’ve explained the situation, it’s helpful to ask them what solution they’d like. Perhaps the customer came in wanting a full service, but a quick oil change or installing fresh wiper blades solves the immediate problem and the customer leaves happy (and booked in for a full service in a few weeks’ time).

He recommended taking steps like: mail your database of E customers who have signed up to receive updates and other marketing materials. isting booking lead times on L your website hatting to customers about C lead times when they call to book.

“If a customer has a big service coming up, reach out to them earlier than usual and make them aware of any delays,” he said.

Be honest and sincere about the situation Whatever message you’re communicating to your customer, be honest and authentic in both what you say and the way you say it.

“If you’ve had to change your working regime, let the customer know,” Chris said. “You might say, ‘we know this is urgent and we’ll fix it as soon as we can, but we’ve been affected by an industry-wide skills shortage, so our wait times are a little bit longer than normal.

Thank you for your patience and understanding.’ And then give them the next appointment available.”

Don’t be afraid to apologise Even though the skills shortage is not your fault, the customer will still appreciate hearing the word sorry.

“They still like to know that you care; it’s just the right thing to do,” Chris said.

Soften the blow and show gratitude If a customer has been inconvenienced by delays, thank them for their loyal business and make sure they know you’re looking forward to seeing them again in the future.

Chris suggested saying something like “hopefully next time there won’t be such a long delay” and giving them the opportunity to book in their next service immediately, to avoid future delays.

CAPRICORN IGNITION OCTOBER 2023

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LARRY’S LESSONS FROM HALF A CENTURY IN COLLISION REPAIR Larry Napoli has seen a lot of change in his fifty years in the smash repair business in South Australia. It’s not just the cars that are different, even the skill set required to repair them is unrecognisable from the trade Larry learned in the early 1970s.

2 2 CAPRICORN IGNITION OCTOBER 2023

“Years ago we’d repair a lot of stuff—we’d repair panels, repair bumper bars and get them chromed—but now it’s more about the replacement of parts,” Larry said. “There are more plastic components and steel compositions that you can’t repair. A lot more cars are getting written off these days because it’s not viable to repair them. And every year you’re just seeing more complex technology in cars, which has increased the cost of repairs dramatically.”

Larry and his two brothers, Frank and Eddie, are the directors of SA’s largest group of independent repair businesses: Smithfield Collision Repair Centre, Carisbrook Collision Repair Centre and Pooraka Collision Repair Centre. The group has about 85 staff, sees about 150 vehicles a week across the three sites and does everything from retail mechanical repairs for the general public to both light and heavy crash repairs for the insurance industry.

The Smithfield business had been operating since the mid-1960s and the Napoli brothers bought it about 38 years ago. They bought the Carisbrook business, which had also been running since the ’60s, about 12 years ago, and the Pooraka site about nine years ago.

Like other Capricorn Members in the panel and paint side of the aftermarket, in recent years the Napoli brothers have had to cope with the rising costs of parts, the changing business practices of the insurance industry, and the struggle to find skilled labour.

“We’re our own worst enemy because there are a lot in the industry who can’t be bothered training apprentices anymore,” Larry said.

That might be changing. The State of the Nation Special Report: The Skills Shortage found that 83 per cent of panel and paint workshops had employed an apprentice. That’s compared to 76 per cent a year ago and is 10 percentage points higher than the aftermarket average. Although he employs 14 apprentices himself, Larry said he sympathises with those who don’t.

“I’ve turned over a lot of apprentices that haven’t even made the three months’ probation,” he said. He recommended choosing apprentices who had completed a pre-apprenticeship at TAFE as they “had shown a commitment” to the industry.

Larry has had success with sponsored immigration—something considered by 48 per cent of panel and paint businesses in the past year, as they struggle to fill vacancies.

“It’s not a cheap exercise but sponsored workers are a different breed because they’re committed to the cause,” he said. “They’ve got good reasons to hang around and do the right thing, so their whole culture and outlook is totally different.”

Larry said he’d sponsored perhaps 10 skilled workers over the years, from all over the world— England, Philippines, South Africa and Fiji.

Working alongside Larry’s apprentices and sponsored workers are the next generation of the Napoli family, including his daughter Danielle and five of his nephews: Ben, Jason, Jamie, Eddie and Nathan. Jason’s wife, Krystal, is also in the business.

Larry’s top 3 pieces of business advice: 1

reat your customers well and with respect.

T Do the right thing by them, even if it costs you. The investment will reward you in the long term.

2

L ook after and engage with your staff. Be more than just an employer; treat them like family.

3

R un a clean premise. Make sure your staff are well-dressed, the floor is swept, the lawns mowed and the office and workshop are organised and tidy.

CAPRICORN IGNITION OCTOBER 2023

23

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INTERNATIONAL

MOTORSPORT

REUNION

by Paul Marinelli

CAPRICORN IGNITION OCTOBER 2023

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The 2023 Rolex Monterey Motorsports Reunion meeting held at the undulating Laguna Seca Raceway in Northern California proved that even after more than half a century, Formula 5000 cars remain exciting and appreciated by both drivers and ardent motor racing fans of all ages.

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hile the vast majority of fans are relatively recent converts to the sport, this two weekend celebration of all things historic in motorsport also allows original drivers, mechanics and race officials from the various different periods to catch up with their old cars.

The original drivers and crews are always keen to tell stories of their exploits in those cars to their current owners and drivers, adding to the historical significance of their restored Formula 5000 racing machines.

New Zealand and Australia were well represented at this global historic motor racing event. Kiwi racers Glenn Richards (Lola T400), Tony Galbraith (Lola T332), Tony Roberts (‘high-wing’ McLaren M10A) and Alastair Chalmers (Chevron B32) all took part. They were joined by five Australian drivers: Bill Hemming (Elfin MR8), Dean Camm (Chevron B24), Peter Brennan (Lola T330), Charlie Talbot (Lola T332), and Paul Zazryn (Lola T332).

The Trans-Tasman contingent joined 20 of the best drivers from the US Formula 5000 Revival series, headlined by UK- based American expat (and co-owner / Team Principal of the McLaren F1 racing team), Zak Brown, driving his Lola T332 in the event’s F5000 races.

Off the track, this annual Rolex Monterey Motorsports Reunion meeting featured a week of non-stop historic car activities across the majestic Monterey Peninsula. These included the famed Pebble Beach Concours d’Elegance, along with major car auctions and vehicle manufacturer activation events, including new vehicle launches, marrying the historic with the brand new.

The schedule of events over the Monterey Car Week this year was so jam- packed that visitors needed to select which events to take part in, with a total of 30 separate and concurrent events being held across the coastal towns. These included the Automobilia Monterey Expo, the Porsche Monterey Classic, Acura in the Park, the Pebble Beach Monterey Classic, Motorlux, Ferrari Owners Club Concours of Carmel, Legends of the Autobahn and the Concorso Italiano, to mention just a few.

There is no doubt that the Monterey Car Week featuring the Rolex Motorsports Reunion is one of those bucket- list events for any historic motor racing and automotive enthusiast. Monterey is located 185 km south of San Francisco in a magical drive along the 101 Pacific Coast Highway.

I have driven along this route in my years as an international motor racing reporter, and the ocean views along the 101 are stunning, as are the beautiful towns of Carmel, Pebble Beach and the famed 17 Mile Drive, along with the city of Monterey itself. This is an United States road trip that is up there with the very best.

Breville - Bambino Plus Coffee Machine

Wednesday 25 October 2023

8am until 8pm (AWST) 11am until 11pm (AEST)

With Purple Day just around the corner, here is a sneak peek on what will be on offer on the day! Log in early to make sure you don’t miss out on the products you are after.

Arlo Essential Spotlight Camera

Nutribullet - Blender Combo 1200W

Nintendo Switch Console Model Neon

Weber Q Black LPG BBQ

Dometic 36L Patrol Icebox

Products subject to availability.

Don’t miss out on using your Rewards Points to tick off your Christmas shopping!

For the best chance of everything arriving on time to be wrapped and under the tree, please order before these dates: Merchandise: Friday 10 November 2023 eVouchers: Monday 18 December 2023

capricorn.coop/rewards *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 Christmas is made and Capricorn will not be held liable for any failure to deliver items before Christmas regardless of the date on which they are ordered.

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YEARS PREFERRED SUPPLIER

COOLDRIVE AUTO PARTS AUSTRALIA

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Their extensive global sourcing network, access to renowned vehicle component manufacturers and excellent reputation enable them to serve a wide spectrum of markets. With four decades of experience in the automotive aftermarket industry, CoolDrive Auto

Parts has secured partnerships with some of the globe's most prominent and respected automotive brands.

Their customer-centric approach ensures responsiveness to the needs of both large corporations and smaller businesses.

CoolDrive Auto Parts is also excited to introduce its new location in Yatala, Queensland, an iconic site that promises a remarkable journey ahead. CoolDrive Auto Parts is also currently relocating both their Eagle Farm and Thomastown branches to larger locations as well as planning a new branch in Burleigh Heads QLD in October. cooldrive.com.au

CAPRICORN IGNITION OCTOBER 2023

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a i d n I r u o T i l o H n r o c i r p a C

18 –

DELHI JAIPUR

OVERNIGHT FLIGHT

AGRA

RANTHAMBORE

INDIA GOA (2N)

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rch 2 a M 0 3

Enjoy us for an all-inclusive 11 night India holiday organised by Capricorn Travel and Wendy Wu Tours.

Prices start from: $4,770pp* AUD (Twin) ex Perth, $5,090pp* AUD (Twin) ex Sydney, $5,110pp* AUD (Twin) ex Brisbane, $5,080pp* AUD (Twin) ex Melbourne PACKAGE INCLUDES: Return international economy class airfare flying with Singapore Airlines All accommodation and meals for 11 nights All land transportation by AC vehicle Holi celebration in Jaipur on 25th March 2024 with local musicians, dancers, loads of fun and food Visit the Taj Mahal at Sunrise in Agra National English-Speaking Guide for the entire tour Two Jungle safaris into the National Park in Ranthambore E-Visa for India for Australian Passport holder and more

Book now, contact | travel@capricorn.com.au *Above prices include air taxes and are subject to change until time of issue* for detailed terms please contact Capricorn Travel. Capricorn Holi Tour India March 2024 is subject to Capricorn Travel Terms & Conditions which can be found at cap.coop/tc

CAPRICORN

FUN ZONE SPOT THE DIFFERENCE 5 Differences To Find

Email your entries to ignition@capricorn.coop before 31 October 2023.

Winners will be selected by a random draw of the correct Member entries occurring in West Perth on 1 November 2023. The winners’ names will be published in the December edition of Ignition. Please ensure you include your Member number and email address when submitting your entry.

LAST MONTH’S ANSWERS

August Winners 1st Prize - GRAEME MAC PANELBEATING - 4,000 Bonus Rewards Points 2nd Prize - HART BROS - 2,000 Bonus Rewards Points

WORD HUNTER Find the 15 words hidden in the jumble.

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

CHALLENGE

RESOURCING

DATSUN

SHORTAGE

ECONOMICAL

SKILL

FUEL

SPECIAL

HIRING

SURVIVAL

ICONIC

TALENT

MUTUAL

WEALTH

REPAIR

CAPRICORN IGNITION OCTOBER 2023

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ONE DAY ONLY!

Wednesday 25 October 2023 From 8am until 8pm (AWST) From 11am until 11pm (AEST)

Save on selected Capricorn Rewards Limited availability - get in while stocks last!

Spend your points at cap.coop/rewards Special offer valid from 8am(AWST)/11am(AEST) to 8pm(AWST)/11pm(AEST) 25 October 2023. Only while stocks last. Participation in the Capricorn Rewards Program is subject to Terms and Conditions available at cap.coop/tc