(15 words to find!)
The events advertised include current and planned events (which are subject to change). To get tickets or view a planned event’s status, log in to myCAP and click on events. For further information please contact our Events team.
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The Capricorn Society Ltd Annual General Meeting (AGM) is your opportunity to have a say in Capricorn’s future and we’d love you to take part.
DATE: Wednesday, 15 October 2025
Join us online via myCAP or in person at Level 19, 141 St Georges Terrace, Perth WA.
You can vote now on the AGM motions via myCAP, or on the day if you attend in person or online.
This is your chance to help shape the decisions that keep our Community strong, connected and thriving.
TIME: 9am AWST | Noon AEDT | 2pm NZDT cap.coop/agm For details on the motions and how to vote, head to
Later this month we will be launching the New Zealand State of the Nation report in Auckland, bringing together key stakeholders to continue the conversation on how we can support and grow the automotive industry. Last month we launched our Australian State of the Nation report in Queensland.
These events allow us to bring together our whole Community of Members, Preferred Suppliers, Capricorn team members and stakeholders to share insights and have genuine conversations about the state of the automotive industry.
This year’s State of the Nation reports showed that the skill shortage continues to be the number one issue affecting our Members. In good news we continue to see that, despite economic and labour pressures, 78% of Capricorn Members have plans to either expand or to improve profitability in 2025 – perfectly demonstrating the faith and resilience of our Community. Capricorn is there to provide help and support every step of the way.
You can find out more about the Australian report in this edition of Ignition or on our website with the New Zealand report available from 10 October. I encourage you to read the reports and use the information to help shape conversations about the industry. I look forward to continuing to share it with stakeholders and government officials in the next few months to advocate on behalf of the automotive industry.
This month we’ll also be hosting our Annual General Meeting (AGM). Shareholders are encouraged to attend in person or online (details at cap.coop/agm). At the AGM we’ll be celebrating the contribution of Mark Cooper, our current VIC/TAS Director who has served on the Board for 12 years including five as Chair.
As we enter the final quarter of 2025, I look forward to connecting with many of you at the New Zealand Gala Dinner & Trade Show. If you don’t have tickets, time is running out.
Brad Gannon Group CEO
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4 DRIVING CHANGE
What we learned from the 2025 State of the Nation.
6 ARE DIGITAL PLATFORMS THE KEY TO GROWTH?
The benefits of embracing new technology.
10 FUTURE RIDE: AUTONOMOUS VEHICLES IN MINING
Why the industry is two decades ahead of the rest of the world.
14 PLANNING ON BOOSTING YOUR PROFIT MARGIN?
8 key areas to examine for a healthier bottom line.
16 MEMBER/ PREFERRED SUPPLIER PROFILE
The evolving legacy of Sandgate Wreckers.
From business owners to the workshop floor, Capricorn’s latest State of the Nation reports are helping to drive real change for mechanics, small businesses, and the future of the automotive trade.
This year, Capricorn’s annual State of the Nation industry reports — now in their sixth year — will once again deliver a powerful snapshot of what’s happening in workshops across Australia and New Zealand. From the toolshed to the office, the findings are helping shape the future of our trade.
On 10 October 2025, Capricorn will proudly host a special event in Auckland to officially launch our latest research findings for New Zealand in front of key stakeholders, industry leaders, and passionate Capricorn Members.
“It is a fantastic opportunity — a chance to bring the voices of mechanics and small business owners directly to the people who help shape policy. We’re incredibly grateful to everyone joining us for their support and for recognising the importance of the automotive aftermarket to New Zealand's economy and communities.” said Brad Gannon.
So, what did this year’s Australian report tell us about the aftermarket automotive industry?
Despite ongoing challenges, confidence across the industry remains steady. The Capricorn Confidence Index rose slightly and 78% of Members say they plan to grow or improve profitability in the next 12 months. That’s a clear sign that mechanics and workshop owners are backing themselves — even in a tough environment.
Confidence Index
Once again, the number one issue facing our Members is the skills shortage. Nearly half of businesses reported struggling to find qualified staff and many said it’s affecting everything from customer wait times to their own work-life balance. It’s a persistent pressure point, but one that we’re working hard to address through advocacy and support.
There’s good news too. More apprentices are entering the trade; and they’re bringing energy, ambition and a strong belief in the industry. Many aspire to own their own businesses one day and their confidence in the future is a positive sign for what’s ahead.
Electric and hybrid vehicles are becoming more common, and workshops are starting to adapt. While many businesses still feel underprepared, especially when it comes to training apprentices on new systems, the appetite to learn is strong. This is an area where government and industry can work together to ensure the workforce is ready for what’s next.
Capricorn collects this data not just to understand what’s happening — but to do something about it. We use these insights to advocate on behalf of our Members, raise awareness of the challenges they face, and influence change across Australia and New Zealand. Whether it’s pushing for better training programs, promoting trades in schools, or supporting small business innovation, our goal is to make sure the voices of mechanics and workshop owners are heard.
This year’s findings are already helping guide conversations with policymakers, industry partners, and media. They’re also helping us shape the support we offer to Members — from business tools to finance options to training resources.
The 2025 State of the Nation report shows that while challenges persist, the industry is full of opportunity. Mechanics are adapting, innovating, and growing. Apprentices are stepping up. And with the right support, the sector is ready to thrive. We’re proud to stand alongside our Members and help drive that change. Thank you to everyone who took part in the survey, attended the launch, or shared their story. Your voice matters and together, we’re building a stronger future for the automotive industry.
Could investing in a simple digital platform be all you need to take your workshop’s performance to the next level?
When you consider that State of the Nation found that just 22 per cent of Members are using online booking and scheduling tools, and 11 per cent are using CRMs, the opportunity is clear.
Capricorn Member Li Max Joy is the director of SR Automotive and runs two workshops in Tasmania. He’s had a long career in the industry, having worked for Suzuki, Honda, GMC, Mitsubishi and Kia, among other auto companies in India, the Middle East and Australia. He’s a fervent believer in the power of embracing technological change to supercharge his business, whether that’s investing in software or equipment.
“If you don’t keep up with the times, then you go backwards,” he said. “You don’t want to be Nokia. Nokia was the biggest phone in the world. When Android came along, Nokia said no. Samsung said yes. Nokia lost the picture.”
After doing free trials of several business software solutions, Li Max chose Workshop Software—an Australian-made cloud-based software-as-a-service solution specifically designed for the automotive aftermarket.
“I’d been watching their videos and I thought they were a company that is not stopping where they are; they’re going to keep updating, improving and integrating, so I thought they’d be a good one for the future,” Li Max said.
Workshop Software (who are a Capricorn Preferred Supplier operating in Australia and New Zealand) offers a comprehensive front-end workshop management system with online booking capabilities, job management, staff time tracking, product and inventory management, service reminders, registration renewals and other follow-up services, text message and email automation, and integration with major accounting packages like Xero, QuickBooks and MYOB.
For Li Max, the benefits of using a system like Workshop Software include having the flexibility to edit an invoice at any stage of the process, the ability to communicate conveniently with customers, easy integration with various apps, and access to a support team if he needs any troubleshooting or just wants to suggest an improvement.
What difference has it made to his business? Li Max said SR Automotive is now much more efficient and has a competitive advantage over other local workshops.
And it’s that competitive advantage that Workshop Software founder, James Mitchell, urges aftermarket business owners to embrace.
“Customer expectations have dramatically changed over the past 10 to 20 years,” he said. “I can book a haircut and a dental appointment
and order a pizza online. I can virtually watch where my pizza is on its way to be delivered to me. Whereas I drop off my $20,000, $50,000, $100,000 asset to someone who I may not know, give them the keys, maybe I’ve booked it over the phone, and I’ve got no clue what’s happening with that vehicle while it’s in the workshop.”
“Today, customer expectations are way higher. Someone who’s 40 has grown up with digital technology their whole life. They’re very adept at using it.”
James said he understands why some workshops haven’t embraced the opportunities of CRMs and other digital solutions. He said, in the old days, they were complicated, cumbersome, and required servers and regular backups. But those days are long gone.
“You can use it on an iPad,” he said. “You just need an internet connection and away you go. The software costs less than an hour of labour a month.”
James said at-the-click-of-a-button software like his can give any workshop owner detailed analysis of how their business is operating and that’s an incredibly powerful tool for anyone wanting to improve efficiency or profitability.
You read that right.
1478 is the year Leonardo da Vinci drew plans for a self-propelled cart, widely considered the world’s first robotic vehicle. It used a clockwork-style mechanism to beetle along a programmed path, using a system of pegs to steer.
Since then, there has been no shortage of visionaries promising us automated vehicles. In 2015, then Waymo boss Chris Urmson famously predicted his son would never need a driver’s licence because autonomous vehicles would be everywhere by 2019. In 2017, General Motors Head of Foresight and Trends Richard Holman reckoned autonomous vehicles would be ubiquitous by 2020.
Yet the widespread takeover of our roads by Level 5 autonomous vehicles remains elusive, at best. But then, it took researchers until 2004 to successfully build da Vinci’s robot, so Urmson and Holman still have some time up their sleeves.
While automakers are still experimenting and designing their way to an automated future, one industry has been successfully deploying autonomous vehicles for almost two decades: mining.
Japanese heavy equipment manufacturer Komatsu has been developing autonomous mining vehicles since 1990. The technology, once refined, was deployed for the first time commercially in Chile in 2007 and in Australia in 2008, where it has since led the way in the technology’s commercial adoption.
Mine sites are ideal locations for autonomous driving systems because they are closed, private environments where one company has control over the operating conditions. There are no unpredictable human drivers, pedestrians or cyclists. The routes and tasks are predictable, so there’s not a lot of complex decision-making compared to navigating city streets.
Competitors to Komatsu, like Caterpillar and Hitachi, soon released their own autonomous haulage systems (AHS). Mining companies quickly adopted the new technology and it’s easy to see why. Caterpillar claims its system reduces the operational costs of mines by 20 per cent, lifts productivity by 30 per cent (the trucks can operate 24/7), and reduces accidents by 50 per cent.
Little wonder then that by July 2024, there were 927 AHS trucks operating in Australian mines (almost half of the 2,080 AHS trucks operating across the globe).
Most of those trucks are operating on BHP sites, followed by Rio Tinto, Yankuang Energy Group and Fortescue. Caterpillar and Komatsu account for 74 per cent of the market.
The technology itself has rapidly evolved from simple remote-controlled equipment to a remarkably sophisticated system that uses GPS, LiDAR sensors, radar systems and AI. AHS trucks can detect when they’re overloaded,
automatically adjust their speed based on road conditions, and even perform selfdiagnostics to predict maintenance needs before failures occur.
Unsurprisingly, Members who supply parts and services to the mining industry have seen a commensurate shift in what it means to do business with big mining companies. While the traditional heavy mechanical systems remain in AHS trucks and still need maintenance and repair, they have become increasingly integrated with complex electronic systems that require new and sophisticated diagnostic approaches and methods of repair. AHS trucks generate vast amounts of operational data that can provide insights into component health and performance.
While traditional wear parts like tyres, filters and hydraulic systems still need replacing, the integration of sensors, computing systems and communications equipment means repairers need access to specialist components and expertise. This presents a fantastic opportunity for suppliers willing to expand their capabilities. But technology doesn’t stand still. The future of AHS trucks is electric. Last year Fortescue and Liebherr Mining announced a partnership to jointly develop the world’s first zeroemissions AHS system. Fortescue wants all its Australian iron ore operations to be emissions-free by 2030. The company’s entire fleet is AHS.
But the collaboration goes further than just haulage trucks. Fortescue Metals Chief Executive Officer, Dino Otranto said: “The partnership with Liebherr has enabled us to jointly develop the Fleet Management Systems, which provide us with an OEM agnostic solution that can be integrated with any autonomous platform including trucks, drills, watercarts or any other heavy mining equipment. This critical technology puts our business in full control of our development priorities and road map.”
In short, miners are all-in on autonomous systems. They’ve been using them, evolving with them, and becoming more productive and profitable because of them for almost 20 years. For the industry, there’s only one direction of travel. Those who want maintenance and repair contracts with mining companies will need to train in electric drive systems and batteries, sensor systems, specialist diagnostics, software, calibration, robotics and much more—well beyond what we’re seeing in cars. Working with AHS trucks in mining right now is already like living in the future. That’s only set to continue as the industry develops and adopts technology at pace.
So, when will we finally see the widespread adoption of Level 5 autonomous cars on our roads, similar to adoption rates in the mining industry? In both Australia and New Zealand, it’ll be well beyond 2030. But, hopefully, Urmson and Holman, unlike da Vinci before them, won’t have to wait 500 years to see their plans become a working reality.
Simple changes that can boost your bottom line without compromising service.
Despite the resilience of the auto aftermarket sector, this year has been a challenge for many businesses. Tight household budgets and escalating costs have acted in tandem to increase the pressure on workshop profitability.
However, there are positive economic signs and with interest rate cuts forecast, customer activity could well pick up in the final quarter of 2025. Workshops may not technically be classified as essential services, but vehicle maintenance is a near-essential for most people. Many customers who have deferred servicing or repairs may soon be compelled to return, motivated by the need for safe and reliable end-of-year holiday travel.
Data from the most recent Capricorn State of the Nation survey indicates that 78 per cent of Members are planning to grow their business or improve their profitability over the next 12 months. Furthermore, the survey also revealed that 58 per cent were planning on achieving this growth, at least in part, by increasing profit margins.
While the prospect of better economic conditions is undoubtedly welcome
news, workshops looking to increase their profit margins shouldn’t expect this to happen of its own accord. It’s also not just a case of jacking up prices for customers either.
For business owners looking to increase their profit margin in a manner that’s sustainable and fair for everyone involved, we recommend taking a look at the following areas and implementing adjustments where necessary.
1. Review labour rates and pricing
Official inflation figures might appear to be easing, but key workshop costs, particularly energy and insurance, continue to rise for many businesses. Regular price reviews are essential to keep pace with input costs. Small and frequent price increases can be more palatable to customers than large, abrupt hikes every couple of years, so if your prices have remained stagnant for quite a while, a price review might be overdue.
2. Review parts margins
Purchase prices of many stock items have risen over the last year or two, but have these rising costs been passed on to customers? If not, your parts margin will have deteriorated considerably.
There is no hard and fast rule on the size of markups, but as a general rule 50 percent is a good target.
However, this percentage should just be treated as an average, as a reasonable markup can vary from anywhere from 200 per cent to 5 or 10 percent depending on the item in question.
3. Charge for diagnostic work
It is quite normal for many customers to mention some repair or accessory that their car needs at the very last minute after booking their car in for a regular service or a planned repair. Their hope is that this ‘extra’ will be taken care of as part of that day’s service. It is also common for the workshop to spend extra time diagnosing the ‘extra’ problem for free while attending to the main chore.
Attending to a service correctly in the recommended time is hard enough, but adding new problems to solve within the logbook time only serves to complicate matters further while also eroding profitability.
Anything ‘extra’ that the customer needs must be treated as a new assignment that will involve a diagnostic inspection upfront and should be charged out, as you would
do for any other vehicle that was brought in to have a problem fixed.
4. Clock on and off every job
Industry statistics reveal that workshops often bill for around 70 percent of technician time. The main reason for this laxity is poor labour control, with technicians moving from job to job without clear time tracking. The solution is to enforce a culture of strict clocking on and off for every job. Modern workshop management software makes this simple, helping to track job times, identify efficiency gaps and accurately invoice for all billable hours.
5. Outsource jobs beyond the workshop’s skill set
Even highly skilled workshops sometimes take on jobs outside their primary area of competence. These have a tendency become unprofitable time sinks due to a lack of specialist tools and knowledge or the need for repeat diagnosis.
Learn to say ‘no’ to jobs that don’t fit your team’s capabilities, or which can’t be delivered at a profitable standard. Build an external network of trusted specialists, so you can refer or
outsource with confidence. Adopt this strategy and your bays will continue to turn over profitable, well-managed work, protecting your gross margin and maintaining customer trust.
6. Minimise mistakes and comebacks
Mistakes and vehicle comebacks are always costly, but in tough economic times, the impact on your profitability and reputation can be severe. Every rework job is time, labour and parts that can’t be invoiced, directly eating into your bottom line.
It’s vital to review your workshop processes and ensure robust quality controls are in place. Remind your team regularly that the quality of their workmanship is non-negotiable. Foster a mindset that values quality over quantity.
7. Ensure payment on vehicle pick-up
The most common reason retail customers end up with outstanding invoices is the workshop not having the bill ready at collection time. If your team tells a customer, ‘We will email you the invoice later’, the door is wide open for delayed payments and unnecessary admin headaches.
Workshops must make invoicing a priority. They need to be ready for the customer’s arrival so payment can be collected by EFTPOS, credit card or even cash before handing over the keys.
If your current workflow can’t reliably produce same-day invoices, it’s time to review your management system and processes. Investing in modern workshop software to automate and streamline invoicing pays for itself many times over in reduced admin work and tighter cashflow controls.
8. Reduce unnecessary overheads
It’s good business practice to regularly review expenses and shop around for essential services such as electricity and insurance. Look for areas where you can negotiate, bundle or switch suppliers for better rates — every dollar saved flows straight to your bottom line.
By focusing on these fundamentals your workshop will be well-positioned to not only endure but thrive as economic conditions improve.
In 1985, Darren Connolly’s father, Viv, thought he had retired. Viv had taken over the family mechanical workshop, Connolly Motors, a business that had been in the family since 1950, from Darren’s grandfather. After running it for many years, Viv thought he was ready for a well-earned break.
“Dad lasted two months,” Darren said. “Then he said, ‘I can’t sit around like this all day’, and he and Mum bought Sandgate Wreckers.”
The business was a small, two-person vehicle recycling yard in Sandgate, a coastal suburb north of Brisbane. Forty years later, and still trading in the same location, Sandgate Wreckers is unrecognisable. Now run by Darren and his wife, Tanya, the family has grown it into a state-of-the-art, twenty-first-century vehicle recycling operation that employs 19 people and has a sales presence that extends across all of Australia.
In fact, it’s perfectly set up for the next generation to take the reins. Darren’s son Mitch had never intended to work in the family business. He had carved out a career for himself in the property sector. But in 2023, he was coaxed back to Sandgate in the newly created role of business development and innovations manager.
“Since Mitch came on, he’s brought a whole lot of energy to the place,” Darren said. “When he started, we were still using an old analogue phone system. Now we’ve got phones that run through the computers. We’ve got the ability to send payment links to customers to make payments so much easier.”
Mitch has updated the inventory management and racking systems, introduced a quality assurance program (the Sandgate Standard), streamlined ordering and dispatch processes, and introduced a range of benefits for customers, including for Capricorn Members.
Sandgate Wreckers has been a Capricorn Preferred Supplier since 2007. It’s a relationship Darren says benefits everyone.
“Members like using Capricorn suppliers,” he said. “They just ring up and say, ‘here’s my Capricorn number, send me the part’. We say ‘OK’. How easy is that? And for us, it also means we’re guaranteed payment.”
18
YEARS PREFERRED SUPPLIER
Darren and Mitch are now working together to prepare the business to meet the challenges that lie ahead as the industry adapts to rapid technological chage.
“The last two years we’ve gone over to the United States to the United Recyclers’ conference, which has been really eyeopening for us and has certainly given us a lot of ideas for improvements, and we’ve changed a lot of things here—with plenty more improvements to come,” Darren said.
But some things at Sandgate haven’t changed in the last 40 years. Darren’s dad, Viv, is still completely incapable of retiring. He still heads into the yard three days a week to chat to the team, check inventory and keep a close eye on sales figures. The company still operates on Viv’s founding principle: that integrity, professionalism, and a smile are the basis of success.
Viv’s presence is one Darren and the team cherish having around the wrecker’s yard, even as yet another generation of Connollys works to modernise and futureproof the family business.
The Connollys’ story is a powerful reminder to every family-run workshop, yard and service centre that with the right mix of tradition and transformation, their legacy can continue to thrive for generations to come.
sandgatewreckers.com.au
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