Just looking at the Motor Vehicle Body, Paint and Interior Repair in Australia - Market Size, Industry Analysis, Trends and Forecasts (2023-2028) on IBIS and they say the market in Aust is $7.5 billion and possibly shrinking which sounds strange to me as more cars and a higher crash ratio/higher repair cost at the insurers but they are the experts.
AMA at $800 million is a big player that Australia has never seen before and the insurers need.
To roll out a network of 140 shops would be a hard task as many suburbs have councils that are not smash repairer friendly so any new shops would probably have to end up in new industrial specially built premises and the cost to setup new shops would be very cost prohibitive. A new green fields shop would have to put through a minimum of 100 cars a week depending on severity size.
The gorilla in the room is staffing, you can build what ever you want but there are minimal staff to carry out repairs so it would be risky for a new player to enter the market and not being able to staff any new premises.
AMA in their annual report list they have 3300 staff, nobody will be able to get that up and running in a time frame that suits the insurers and customers.
AMA Price at posting:
4.2¢ Sentiment: None Disclosure: Held
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