I am in smash repairs and there is no overlap with BAP and they operate in a similar but totally unlinked industries.
BAP is a company not many smash repairers would use as BAP mainly supply mechanics.
If there is a drop off in revenues at BAP in my experience since they listed it is that their pricing is out of control so I would think its an own goal rather than a canary in the coal mine moment for the automotive industry. I price check them sometimes and nearly every time OEM eg Toyota are better quality and cheaper so I don't bother. I think Repco and a few others are taking customers away from them. I don't follow BAP but I can see the place must be run by people in the margin expansion game at their own peril.
With the business AMA they are in it is sort of recession proof as people still drive and with the immigration levels jumping there is more inexperienced drivers on the road.
AMA are also now doing private repairs as long as no parts when they do an insurance repair. This is something only just implemented so that is a bit of extra turnover that is easy to grab.
If you drive anywhere you will see there is more traffic on the roads not less. People won't give up driving cars and the repairs costs on these new cars is too risky to not have insurance. Example I did a Hilux 2 weeks ago, new bar, grille, one headlight and few parts and it was $7500. Labour was $1300.
This is a great example I think a company needs to do.
Paul Scurrah ex Virgin has a management philosophy that has at its centre the balancing of three key groups: shareholders, employees and customers (and, in some industries, the government and regulators).“I’ve learned, through good and bad examples, that the purpose of a CEO is to keep an equilibrium and keep an ecosystem alive and healthy,” he says.“If you over-index on any one of those, the other two get out of whack. And you start to see things go wrong in an organisation.
So Matt and the AMA team need to do that and we will all be sweet. In our case customers is Insurance and car owners.
AMA Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
