Hi Doc, FYI the IBIS report at 7 bill is a furphy, as it includes glass and trim etc. The breakdown is about 60% in smash repairs. ( refer same report) At best, the total smash industry is about 4 bill. At one point AMA went close to 25% of the market, now closer to 15% (my numbers)
With regards set up of new sites. 250k will set up a SMART shop and most of the cost can be on a lease. spray booth being the big ticket item, so any compitent business minded repairer can set up one, after that, proof of concept and then roll out.
Staff is the annoying stumbling block. It will take a few years to roll staff from AMA to another MSO's. The other MSO's are learning how to ramp up in an orderly fashion and over the past 3 years the big 5 have recruited over 1000 staff, so it's very doable. This will not help AMA who have a well documented disconnent between blue collar and white collar. I hope Caroline takes particular note of this.
The leaner, hungrier, fresher MSO's will get their staff, that I'm confident on.
AMA Price at posting:
4.3¢ Sentiment: Hold Disclosure: Held
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