Hey Chevelle 67
A few points/ answers. Suncorp and CARe made a few promotion pics and announcements about overflow work mid last year, I took these as a shot across the bow by Suncorp for AMA to pull their head in.
AMA are making zero money (your thought not mine as I don’t trust the accounting practices) I believe they could be making good coin if they can stabilise the place and just fix bloody cars.
I get the impression Matts working to a plan and got rid of most (not all the problem ppl at the top, now he needs to trickle down the processes.
Having said that the other MSOs don’t have the debt burden and have teams that are all pulling in the same direction and making fair coin at the perceived low rates.
Right or wrong both sides have breached the contract as I understand it. Suncorp had to supply work and didn’t, but AMA have to actually do the work provided and a few years ago they failed here badly, they blamed covid, but it was a self-imposed labour shortage, they sacked plenty and then couldn’t get them back.
AMA need to ensure they grow staff numbers not lose them, not an easy task when the staff are drifting back to old familiar bosses like DRIVE, CARe, Fortress etc. As the new players open centres and secure staff, they become attractive to Suncorp (and other insurers) because they can repair volumes that AMA can't. ( it’s a great time to be a tradie $$$$$)
Yes, they paid over the odds to buy SMART, but it was implied that AMA would get the non-suit work as well as the 400-mill turnover pa, which would have pushed the turnover up around six hundred mill and made it look a lot better. It could have been 400mill @ 2% np and 200mill at 22% np and looking like that they kicked a real goal. The former chairman of AMA (x Suncorp boss) didn’t do what he was paid to do and here we are. moore than one person failed badly here.
It is almost like Matt needs to unscramble an egg.
PCM model is a very different game, but if you know the rules and apply them it is more profitable than line by line (plenty will disagree, especially those that don’t know the rules)
If I am invited to do PCM I will take it in a heartbeat, roll out 250 sites and bankrupt the insurer with spirally high repair costs like the good operators are doing. Having said that I think the insurers in general are seeing the faults and flaws and realising the repairers have found the cracks and are exploiting them. It’s shelf life is close to over. It won’t be replaced with line by line though.
AMA market leader? 1.76 million claims pa in Aust according to ICA. Not sure of write off break down (working on that data), AMA repair say 250k jobs or 15%? I would suggest Car-Craft are in front as a leader. (depends on what you’re measuring I guess) I'm not sure AMA have that much weight to throw around?.
AMA would do better to set up business leaderclasses and help educate the industry with genuine cost models etc and win afew ppl over. The one mill a year wasted on advertising at awards nights etccould be better spent elsewhere (but that just an opinion)
Given that the MTA' have shrunk into irrelevance, other bodies like CZ or Car-Craft along with AMA, Capricorn, APG need to fill the education void. But thatanother rant for another day.
