Regional repairers doing it tough in a shrinking industry

As more and more pressure is put on repairers to lower costs so insurers do not have to pay as much, some repair shops are going to face challenges to stay open, especially in regional areas.

Regional autobody repairers are probably facing the toughest road ahead. Shop operators in smaller country towns are being forced to travel to larger centres to quote on vehicles, and repairers in larger towns are seeing the effects of the two quote or tendering system erode their work.

John Urquhart who operates John Urquhart Smash Repairs in Tamworth, on the NSW Northern Tablelands, believes there will only be three panel shops left in the regional city in five years. He said 10 years ago 13 panel beaters operated in Tamworth; there are now only eight.

Dealing with insurance companies, and the desire by some shop operators to quote cheap prices was leading to the downturn.

After 44 years in the trade, Urquhart said he has relied on his customer base for ongoing work. But now with quoting over the internet and steering, he was losing business.

He told Australasian Paint & Panel that in recent times NRMA had steered five customers away from his business, saying he was not a preferred repairer and the insurer would not guarantee the work.

He is also having problems with Real Insurance, and that he had only been able to listen to a recorded message when he tried to contact the organisation, which is part of the Holland Insurance Group, to discuss the late payment of an invoice.

“That customer tried to be steered away, but said no,” Urquhart said. The job was invoiced on 1 February 2010 and had not been paid after almost two months.

For Berkeley Vale Smash Repairs’ John Matts, the decision to not travel to Gosford to quote on AAMI repairs has cost him business.

“To be a nominated repairer for AAMI, you now have to go into Gosford to do a quote,” Matts said. “We’re going to these centres and doing jobs for nothing.”

To quote a AAMI job, Matts has to travel 40 minutes to Gosford from his Berkeley Vale repair shop, inspect the vehicle and then drive back to the workshop.

The quote has to be prepared and submitted by 11am. If successful, and the vehicle or vehicles were drivable, it means another drive to Gosford, for two or more people, to pick up the vehicles.

This has become non-viable for Matts. Berkeley Vale Smash Repairs, which is now the only remaining smash repairer in that locality, only employs three people: Matts as the painter, his wife and a panel beater. In a busy week, they turn over four or five vehicles.

“There were 13 tradies, now only two in the shop,” Matts said. “It’s almost time to go.”