Brad Gannon has inherited a strong legacy as Group Chief Executive of Capricorn in the year it celebrated 50 years and notched up 30,000 members. But he is determined it will continue to grow for the next 50 years and is already implementing practical steps to ensure it remains committed to its members.
Capricorn as an organisation keeps an acute eye on the rapid change occurring in the automotive industry, both in Australia and globally, but for Gannon the constant for Capricorn in a world of change is its principles of service.
“Capricorn has a heritage of helping its community of members and preferred suppliers,” he says. “That’s been 50 years with a purpose of supporting automotive businesses and allied industries, and that purpose and those cooperative principles will help guide the future of Capricorn.
“Going forward, it’s really about making sure that everything Capricorn does serves that, and it remains an essential partner to our members, not only surviving in the automotive industry and all the changes that come with it, but really thriving in an ever-evolving industry.”
But Gannon is also determined that this support translates into practical steps to help in the areas of most need.
“A particularly acute issue is around the skill shortage, and so that is an area of particular focus for us.”
In one step, Capricorn has expanded its Rising Stars Awards program to now incorporate six regional winners, an overall winner and a prize pool of more than $30,000. Gannon explains the celebration of excellence in the next generation of automotive workers and the support of their employer businesses sends a strong message to future recruits along with boosting retention with current employees.
Capricorn will back these efforts up with member events like a recent one in Albany WA, where a group of 25 interested school students had in-person exposure to automotive careers.
Gannon also highlights the crucial value of the yearly State of the Nation survey, gathering feedback from thousands of members and giving an up-to-date picture of the skills issue. It has, for instance, shown that paint and panel has felt the skills shortage more acutely than many other sectors with 73 per cent of respondents confronted with resourcing issues. Collision repair is also the sector most actively looking to apprentices to fill this gap with 82 per cent employing trade interns in 2024.
While it helps the industry to know itself, Gannon points out the research also carries weight in advocating to government of the current situation and automotive’s critical role in Australia.
“Capricorn certainly is taking a step into sharing with government, both at state and federal level, in making clear the challenges of running a workshop,” he says.
“We’ve shared with them that information from our State of the Nation research, which is market-leading research and in the sense of what’s going on the ground, it is hugely significant.
“And it really describes those issues; being ready for that change, of servicing the needs of consumers who are under pressure from cost of living, training up the next generation, succession planning, all those issues which are very real and are exacerbated by ever-changing car parc and that it needs appropriate investment.
“Compared to other trades, it doesn’t get anywhere near the prominence and importance that it deserves. But eventually you’re dealing with a product that goes to the health and safety and wellbeing of people on a day-in-day-out basis. If it fails it has significant consequences.”
New positions, sharper focus
One structural change that Gannon has implemented since taking over, is to divide his former role as head of Automotive into two divisions to maximise the support Capricorn can offer its network.
“The real driver for that change was that the whole business is about our automotive members. It was really calling out that our whole business, our whole executive structure, is about servicing those automotive and allied members.
“In essence then, a role that previously looked after members and suppliers as one has now been split into two different roles, while the whole broader team is looking after all members.
“The CEO of Trade, Andrew Zadow will be responsible for member relations and services, excluding relating to Capricorn Mutual. What has been split out from the CEO of Automotive is the management of our preferred suppliers. That’s the role of our Chief Development Officer, Steve Edgar. And more broadly than that, looking at ways in which he and Capricorn can support our community in that changing automotive landscape.”
Gannon says the specific focus of development will help in a changing automotive landscape even while pursuing the guiding principles of the wider cooperative.
“How does Capricorn play that leading role in making sure that our members needs are met? That we are at the forefront of making sure that there’s a solution for them?
“And what they need is only going to become more complex because of the range and brand of vehicles, and that mix between ice, hybrid and electric vehicles continues to expand. The role is critical to make sure that we’re able to service the changing needs of members.”
Evolving industry
As financial, technological and skills pressure increase, many smaller businesses are looking at their options. The convergence of businesses into MSOs and other networks has been a strong trend in the UK and US, that is increasing in Australia, but he wants to make sure the support is there for whatever choice the business makes.
“That’s why it’s wonderful to have an organisation like Capricorn in the Australian and New Zealand market, because it allows you to operate independently. Many of our members love the fact that they are independent. For some it suits them being part of a broader group, some prefer to be by themselves, and we’ve got members who are both.
“Capricorn is a cooperative organisation which the members own and one they can know is looking out for their best interests. So, we have people looking at those kinds of trends over the horizon asking what do they mean for our members? And then, both in conjunction with our preferred supplier and partners, what we’re doing is helping members have the right goods and services they need to continue to operate successfully as the world around them changes. They’ve got that option of having an organisation that is looking out for them. Because the challenge is, when you’re busy with the day to day running of a business, it’s hard to look up.”
Gannon points out that the average age of members has remained steady over the last five years, despite the percentage of businesses owners planning to retire in the next ten years, outlined in the State of the Nation report, highlighting a strong interest in succession planning.
“So, the industry, despite all the challenges, and the lesser investment that it experiences relative to other industries, still has that next generation coming through,” he says.
“It’s certain there will be lots of pressures on those independent businesses but the thing that you also see is what they offer, that convenience and that local, trusted source of repair, is what consumers really enjoy about them. Their place in the market and what they offer is as relevant today as it will be tomorrow, and those businesses will still have a key role to play in servicing, repairing and maintaining vehicles.”
Sustainability and transparency
After releasing their first ESG report at the end of 2024, Gannon is also committed to continuing Capricorn’s sustainability objectives, both as a cooperative and in its wider industry impacts.
“Our business is making sure that whatever vehicle our consumers have that our members are best placed to properly service, repair and maintain them, and we know that minimises the environmental impact of whatever vehicle the end consumer is driving,” he says.
“But it’s also making sure that all the options are available to our members to operate in the most sustainable and environmentally friendly way possible.
“We are also keen to be completely transparent in the way in which we operate across all dimensions whether it’s financial or sustainability reporting, so that our members are aware of what is really important to us. And coming with sustainability is also the delivery of economic returns to our members. If we operate in the most sustainable and cost effective and efficient way possible, that means we can give more back to our members. We see sustainability as also about using as few resources as possible to run the business, so members get the maximum possible benefit.”
Despite the multiple challenges both at a local and global level, Gannon remains optimistic about the industry and strength of the people in it. He points to the Capricorn Confidence Index, added to the State of the Nation survey in 2024, as strong indicators of its resilience and attitude. Last year it highlighted confidence in their businesses was at a five year high for members.
“Notwithstanding the fact that things have got considerably harder and more difficult to operate an automotive business, it’s a credit to the individuals and hard working small to medium and large enterprises in the industry that they overcome those challenges,” he says.
“And that’s really the nature of the industry, that it finds a way to move forward. It’s so heavily focused on getting that car back on the road in the right way and at the cheapest price possible for the end consumer. That real passion for what they do and helping their customers is evident in everything that they do.
“It’s a great credit to the industry that it just finds a way.”