29/09/2026
Consolidation – Arresting the Avalanche
Almost two years ago, I provided an overview of the New Zealand collision repair market as of November 2024. What has evolved since then, and what adjustments might be necessary sooner rather than later to stay competitive in this rapidly changing landscape?
In this article, I refer to AMI Motorhub, Capital Smart, Drive Group, and CARe as the consolidators. AMI Motorhub manages around 30% of its own IAG work volume internally, up from 20% in 2024, whereas the others are supported by private equity and have agreements in place with major insurers, including Suncorp. All are owned in Australia and report to their shareholders. Shields Bros is New Zealand's largest Multi Shop Operation (MSO), with 14 locations: 11 in Auckland and the rest in Kamo, Whanganui, and Cromwell. An MSO typically funds its own growth and does not answer to shareholders.
Auckland now hosts 15 consolidator-type locations, increased from 10 in 2024. These include seven AMI Repairhub sites, four Capital Smart locations, three Drive Group sites, and one CARe site. Other key centres include Hamilton, with an AMI Motorhub and a Drive Group site; Wellington, with an AMI Motorhub; and Christchurch, with two AMI Motorhub and two Drive Group sites.
Since 2024, Drive Group has been the biggest mover in site additions, expanding from one to five sites. Capital Smart has reduced its number from five to four. CARe has opened its first site, and AMI Repairhub has increased its number from ten to twelve sites. AMI Repairhub is now undertaking non-insurance mechanical repairs at ten of its twelve sites.
On a per-head-of-population basis, derived from 2025 population statistics, Auckland, Hamilton, and Christchurch each have around 100,000 people per site, while Wellington's single site serves just over 200,000 residents. Additionally, including Porirua and Lower Hutt, from which the AMI Motorhub site also draws work, could increase this number by approximately 170,000.
This article explores whether the growth and adoption of consolidators can be slowed or kept at current figures and locations. After discussions with industry professionals on both sides, the common consensus was yes. The key step in this process involves changing how repairers think and function.
Why did the major insurers start using consolidators or repairing their own vehicles?
Customer retention is the top priority for any business, especially for insurers. As repair wait times increased and customer satisfaction declined, causing market share to drop, the major insurers decided to take control. If you faced a significant issue in your business and a solution was offered, you'd likely pay attention.
The consolidators arrive with a suite of answers that the insurers need.
- Service-level agreements and improved communication between all parties
- Improved cycle times and lower key-to-key times
- Cost consistency and benefits, possibly through fixed or predicted cost models
- One point of contact, enabling the insurer to communicate desired outcomes more easily
- Dedicated capacity, with an agreed level of jobs per week
- Insurer reporting, customer contact times, and key-to-key times
They also view things differently, often prioritising repair over replacement to reduce the scope of work. Techniques such as push-to-repair and paintless dent repair are now part of the estimating and repair process. Having genuine scale also helps with purchasing leverage, creating a cost advantage over independent repairers. Implementing more efficient workflows enhances overall effectiveness; the more jobs processed, the more beneficial the model becomes for both parties, resulting in a superior overall package.
Do cost pressures and thin margins lead to poor repairs?
The insurers certainly don’t believe so. If a consolidator consistently produced poor work, they, like any business, would not retain sufficient customers, and neither would the work provider. All rework is measured, and a stringent audit process creates healthy tension to keep quality at an acceptable level.
Where might the consolidators go next?
Much of this depends on whether insurers’ needs are being met and whether supply-and-demand issues exist in a particular region. After speaking with repairers in Tauranga - 160900, Dunedin - 104000, and Palmerston North - 81200, I found that these three cities are the next most populous after the main centres, and they currently lack consolidators. The business owners I spoke with were all aware of the risk of a consolidator arriving, and depending on how or what was set up, they would work with and around the new landscape. The business in Palmerston North has made the pre-emptive, proactive move to join Car-Craft New Zealand. All three businesses said keeping customers happy and retaining them as clients was paramount to their approach, as was running an efficient company.
A new brownfield site created by a consolidator creates capacity, whereas a consolidator purchasing an existing business can move work volumes from different work providers around. Not all consolidators are created equal. Some models could work with as few as five cars per day, so it is important not to say never to a consolidator affecting your business one day.
If you find some of this overwhelming, you’re not alone. The good news is that options are available to help you compete with consolidators. Fix Auto and Car Craft are two established options in the New Zealand market. Both offer purchasing power, and neither requires you to sell your business.
Car Craft New Zealand is based on the successful Car Craft Australia model, which has around 150 members. It is run as a Co-op, so all members have a share and a say in its operations. Proudly Kiwi-owned, Car Craft New Zealand's clear goal is to build a nationwide network of independent premium repair businesses with a high level of repair capability.
The Co-op will endeavour to secure supply contracts with all types of work providers, such as insurance companies, fleet operators, and vehicle rental companies. With a current membership of 12 shops and another 15 interested parties looking or undergoing the vetting process, Car Craft New Zealand seems well underway. They have also recently appointed Brendon Rosie as Chairperson, supported by a board of eight members to help grow their network across New Zealand.
Fix Auto New Zealand is supported by Fix Network World, a global network of over 875 shops in 10 countries with over 30 years of experience. As a franchise model, you keep your business, but Fix Auto is right beside you. They will give you a seat at the negotiating table with insurers and fleet companies.
Fix Network World owns and operates many aftermarket repair brands, and one you may be familiar with is Novus. In New Zealand, the highly experienced Novus New Zealand owners are bringing Fix Auto New Zealand to fruition. They recently appointed Shane Sampson as the company's General Manager, and the whole team looks forward to using their extensive experience working with work providers to establish contracts and build work volume for their franchisees. Six businesses are currently open, and additional locations are confirmed.
There are other proven ways to secure work volumes and contracts. Opening communication with your work providers and learning what they want or need can benefit both parties. Being open to new ideas can create new possibilities. What if several repairers banded together to deliver the volume and service levels a consolidator offers?
A collision repair business in Wellington has created its own network of quoting centres, which feed into one major production site in a hub-and-spoke setup. They also offer rapid repairs, and an insurance source credited the business with keeping further consolidators out of the region.
As with any new undertaking, the hardest step is often the first. Keep in mind that it costs nothing to have a conversation and gain some understanding. Proper due diligence and finding the right fit for all parties are very important. Change is often forced upon us, but if you needed to and had the opportunity, what would you be prepared to change? How can individual businesses offer the advantages of consolidators in the regions? Answer that successfully, and you may have secured the future of your business.
The rate of consolidation differs across the US, Australian and New Zealand markets. Australia is consolidating more slowly than the US market, and New Zealand, in turn, is consolidating more slowly than Australia. Some would point to New Zealand as ripe for the picking. Conversely, can this moment not be the best time to push back?
So, who is slowing consolidation rates in Australia?
The MSO’s are, by building networks and keeping the need or desire for consolidators at bay. The number of MSO’s is still relatively small in New Zealand and very similar to the 2024 numbers.
The MSO numbers for CRA/MTA members are as follows. Approximately 51 shops are in the multi-shop category, which equates to around 13% of member shops. This comprises eleven owners with two shops, two with three, one with four, one with five and one with fourteen.
Another metric presented in the 2024 article was an estimate of the major insurers’ market share. As with MSO numbers, the market share figures appear to have changed little over the past two years. Based on several in-depth searches focused on the collision repair market, the approximate figures are IAG-51%, Suncorp-28%, FMG-6%, Tower-5%, and the rest of the field make up the remaining 10%. These results show the obvious: we have one very dominant insurer, and the combined volume of the top two has left the industry stuck in a duopoly.
Both the IAG and Suncorp New Zealand divisions continue to perform very well financially for their Australian owners. The FY26 results show that they both contribute substantially to their companies’ overall profits. Online reports indicate that IAG New Zealand was responsible for around 30% of IAG’s overall profit from around 19% of its GWP, and Suncorp New Zealand’s estimated contribution to the overall Suncorp profit was 27% from approximately 16% of its GWP. Make of those figures what you will.
It will be interesting to revisit these facts, figures, and ideas and check the makeup of our New Zealand collision repair market in another two years. You can be successful in a consolidator market; perhaps one of the best things we could all do is refresh our thinking.
This article appears on page 8 of our September / October issue of PanelTalk.
To read in flip book, or to browse through our past issues, head over to www.paneltalk.co.nz
