You remember the story; the new curate is served a rotten egg for his first breakfast with his new host. “How do you like your egg?” the Vicar’s wife asks. “Oh, er it’s good in parts” replies the Curate not wishing to offend. To us, 2013 has been a bit like that. Registrations are up 10% and already ahead of 2012. Profitability is heading for a record year according to ASE. Almost every week one of the big groups announces further acquisitions.
So, where’s the similarity to that egg?
Amongst all of these great headlines, we can find the parts that are not so good. If we take a leaf out of Jim Collins’ book, Good to Great, and “look out of the window” for the causes of our success we can see that it wasn’t necessarily something that we did that has delivered 2013’s result. It’s there for all to see. A reviving UK economy and a desperate economic situation in Europe has resulted in manufacturers throwing money at the UK market to keep registrations going to feed the over-capacity in the manufacturing side of the industry. If we then look in the mirror to see what we have done as an industry that isn’t going so well, we see used car KPIs receding, aftersales KPIs at best stagnating, and many of the acquisitions we have seen are because the acquired company hasn’t performed well enough to fend off the acquisitive groups.
As we have travelled around the country in 2013, we have seen what is happening, and we have also seen examples of where our clients are bucking the trend.
In this month’s Newsletter, we take a look at some of the success stories of 2013 in areas other than new car sales, and focus on some things to put you in good shape for 2014.
Merry Christmas from the Coachworks team!