2025 will be a formative year for many collision repair businesses as they confront several ongoing and some new problems. Tackling them and thriving is all about getting the right support.
2025 could be a crunch year for some small repair businesses according to Fix Network Head of Business Scott Croaker but equally it could also offer an opportunity to make the choices to ensure they have a vibrant future.
“I think 2025 is one of those years that is going to start to demonstrate some of the challenges and stresses on the industry a little bit more,” he says.
“There’s an ageing network, an increase in technologies and there are increased compliance and expectations from the insurance companies around privacy, security, and ESG that is ever more challenging for the individual independent businesses to meet.
“The typical independent mum-and-dad shops often don’t have the facilities to be able to provide this and respond to these expectations. Potentially, they won’t meet the compliance requirements and might not get the work because of this, whereas the MSOs and bigger infrastructures often can.”
He says MSOs are often expanding or acquiring in certain areas of high value and can potentially threaten the work allocation of independents from insurers. While some independent businesses will see this challenge as an opportunity to sell or retire, Croaker says there is also many small businesses where their loyalty and commitment is unwavering, and they are looking for the best way forward to retain the elements of ownership and remain viable. This is where Fix Network can offer another path, utilising a franchise model.
“We provide the back-end support and corporate infrastructure to enable franchisees to compete against the MSOs from a compliance point of view,” he says.
“We offer the business training and skills. We provide support for privacy, security and legislation and are focused on our ESG offering in terms of the corporate compliance requirements from an insurer. And we continue to develop our processes and strategies to support those on a global scale.
“We also have the high-level relationships with insurers, so that our family of franchisees are treated similarly to an MSO, even though we are a network of independently owned businesses. We get a seat at the table and get greater consideration when it comes to the work provision and allocation.”
One of the most valuable forms of support in the network he says, is providing individually based business reviews, insight and support that allows the workshop to meet these challenges and grow their capacity.
“We have our Business Excellence program, where we conduct a quarterly review of their business, look at their high-level key performance indicators (KPIs), throughout and then drill down on any areas of concern. It’s both a desktop review and an on-site review in terms of workflow processes; What’s driving those performances? What are the bottlenecks?
“And we get the shops engagement in terms of, what are the changes that need to happen to improve the results, and how do we do it?”
“It is a continuous improvement program, that essentially looks at operational KPIs, financial KPIs and customer sentiment, the three key pillars that we feel drive the performance and represent the health of the business. We use them to review and understand, to improve how they operate and to get the best result.”
Fix Network’s focus is all about this potential to grow capacity and efficiency. Their more than twenty member businesses across Australia have shown significant success in meeting these changes.
“Over the last couple of years, we’ve got a number of our shops that have extended and expanded, or for example bought the factory next door to accommodate more work or leased a lot down the road to house the cars and manage capacity and workflow issues, so that the shops themselves are as efficient as possible.”
Multiple challenges, multiple solutions
The strength of the network also enables them to offer support to franchisees on several other pressing issues collision repair businesses are facing.
For the long-running issue of recruitment, for instance, Fix Network has been able to tackle some of these problems collectively. A recent recruitment drive to utilise skilled migration from the Philippines has filled positions at multiple businesses.
Similarly, the increasing demands of technology on workshops is an area where Fix Network can utilise existing strategic partnerships with specialised providers in areas such as ADAS equipment and calibration services. Whether outsourcing services or investing to bring them in house and take up the revenue opportunity, these are also a business assessment they can help workshops with. The network also has the advantage of incorporating NOVUS Glass and its experience in dealing with the demands of windscreen cameras.
Fix Network’s ongoing focus on ESG will continue into 2025 with specific plans to look at energy consumption and the footprint of the business both at a global and local level. But this will also serve in practical areas, such as energy consumption and costs and passing those benefits on to their businesses.
“We’ll be exploring how to scale the network to secure greater value for our Franchisees across the country, combining both the Fix Auto and NOVUS Glass networks of franchisees. Our goal is to increase value for energy suppliers and maximise benefits for the entire network.”
These are just a few instances of the leverage a network can offer.
“We’re growing in terms of our scale and growing our relevance and importance to the work providers, he says. “We’re strengthening our position within the industry through our network, and reinforcing relationships and supply partnerships, so that we can grow that way.”
In all these areas of support, Croaker stresses it is tailored to the individual needs of each member, and this follows from a culture that promotes the familial elements of each business.
“What happens on the ground is a lot more nuanced and subtle, but independent to the individual shops. The support we offer through our field team is that we treat the businesses, and they treat us, like family. With the team that have been in the business and in the franchise for a long time, it is almost like family. They’re treated with all the care and respect of a family member.”
Keeping the culture alive
“One of the biggest things that has been a challenge for us, from a franchising point of view, is just the lack of understanding of what franchising is and the value it can provide. So, we’re looking at adapting our approach and strategy,” he says.
“Because for us, the franchise model has the best mix you get – the investment from the owner operators. It’s probably one of the things that, anecdotally, we see missing from an MSO. There may be great capacity, great volume, but there can be a lack of investment and ‘skin in the game’ from the operators. We get that extra edge in the owner-operator. From this point of view, owner operators are more invested in the success and reputation of their business, it is their livelihood after all.”
Croakers says it is vital to retain this for the long-term health and sustainability of the industry.
“We see ourselves as the guardians of the independent network, and certainly we provide that support and infrastructure for them to compete at a higher level than they would if they stayed independent. We broaden their scope; their contact and we also increase visibility of these businesses by elevating them from where they would typically sit.”
Croaker remains highly optimistic about Fix Network’s growth plans but also the ongoing ability for a diverse industry to meet its challenges and through high-quality work, keep Australia moving forward.
“I think for us, it’s not growth for growth’s sake, it’s that we want to support these shops. We want to a establish a network that services and meets insurers expectations from a location, capacity, quality, relationship point of view.
“We’re looking for the right people to support that, and at the same time looking at supporting the independent industry in terms of sustainability, growth and value, to ensure that there is an independent network in five, 10- or 15-years time.”