In case you missed it in our Jan/Feb issue we'll be publishing our interviews with the major MSOs over the coming weeks. We'll kick off with Fortress.
Sites: 12
Employees 320
Type of work: Complex repairs
Established: 2020
Apprentices: 55
Funding: Privately funded
Sites in: QLD, NSW
CEO Peter Taylor has been at the helm of Fortress for around 18 months and has overseen a consolidation of the business. “We’ve moved a few shops, sold off a small one and have been concentrating on becoming more efficient”. Taylor says efficiency comes by ‘redefining better’. “We’ve built clear accountability and value by aligning performance measures to our business model and values, the clarity of our values is now evident in our teamwork, transparency and trusted partnerships.”
“We now have a platform for growth in the business with a strong support team. Our focus is to improve efficiency to achieve the best margin possible through efficiency.”
“The MSO industry has been supported by private equity for three or four years with $400 to $500 million coming in from those sources. Our goal, which we have achieved, is to be a self-sufficient MSO and not have to tap private markets. Our view is that is not sustainable in the long run for the industry, so we’re now cash positive.”
Plans for growth are likely to lead Fortress looking interstate. “There’s an opportunity for some more sites in Queensland but with new players coming into the market funded by private equity this creates an unsustainable cost model as labour is finite and unrealistic pressures are placed on labour efficiency. We are talking with our insurance partners about where the gaps are and that’s where we will look at expanding - where there is a need for more capacity.”
In terms of staying profitable Fortress doesn’t just capture margin through efficient collision repairs but through other avenues such as plastic repairs, stolen/recovered sites. There are five full time plastic repairers in the business and exclusive ‘stolen’ sites. This also benefits insurance partners with more efficient processes and lower production costs.
What Taylor is most proud of is providing a workplace that invests and develops its people. “Our motto is ‘If you grow, we grow; and if we grow, you grow.” Traditionally if someone wanted to grow within the industry in a single site shop they would have to leave and become a paint rep or an insurance assessor. As you go from cottage to corporate there are many more opportunities of growth within the industry. We have some really talented young people in our leadership team.”
Fortress has put a huge amount of energy into ‘growing their own’ from the business’ inception. Its objective is to achieve a ‘people first competitive advantage’ with trained and ready technical and operational support staff. The team connect with the next generation, working with industry groups and the community and schools. They source apprentices and promote careers aiming to build the industry image and change current perceptions of the work. This involves everything from onsite tours to careers fairs to school visits, forging relationships with many traditional and non-traditional schools and training centres. There are two full time trainers who are able to give one on one time and group training, in two state of the art training facilities, to the 55 apprentices on the team.