Specialist
Former VP & Chief Procurement Officer at Service King Collision Repair Centers Inc
Agenda
- Key trends and developments in the US automotive repair industry
- Demand trends and potential impacts of technology changes such as electrification
- Near-term headwinds, including cost inflation, labour and supply chain
- Medium-to-long-term profitability outlook
Questions
1.
What 2-3 key trends or developments have you been following in the automotive repair industry?
2.
How has the automotive repair industry performed through the pandemic? What’s your outlook for the auto repair through 2022 and do you expect longer-lasting or permanent impacts from coronavirus?
3.
Could you elaborate on the technician shortage? What are your thoughts on the education for these technicians or mechanics? Are young people still going to school for these degrees?
4.
Are any MSOs [multi-shop operators] doing a better job of attracting technicians? How is Service King attracting technicians relative to its peers?
5.
How do Service King, Caliber and Boyd drive relationships with insurers? Is any one player doing this better than others?
6.
How does Service King stack up on the longevity, consistency and reliability characteristics you noted?
7.
What are the implications of new technologies and trends around electrification and autonomous driving for Service King and other auto-repair MSOs?
8.
Will technicians receive the training or education through the education programmes MSOs have set up? How do you think about training older technicians to transition to new technologies?
9.
How do you think accident rates will trend, given the advent of more advanced vehicle safety features?
10.
What CAPEX would be required to install scanners throughout Service King’s locations?
11.
How can Service King react, if we assume the auto industry is moving away from ICE [internal combustion engine] and DIY, and increasing technology and collision avoidance? Are there any other services the company can offer?
12.
How has the pandemic impacted Service King’s supply chain, given its effects across several industries?
13.
How would you grade Service King’s inventory health relative to competitors?
14.
All this ties into some of the inflationary pressures impacting Service King’s business model. Which areas pose the greatest risk for margin deterioration?
15.
How much more runway does Service King have for managing OPEX? What levers can be pulled there?
16.
What might be a realistically achievable margin for Service King in the next 1-2 years?
17.
Might anyone be interested in acquiring Service King or parts of its portfolio?
18.
Could you summarise a best- and worst-case scenario for Service King over the next 12-18 months?
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