Small businesses are the lifeblood of South Africa’s motor body repair (MBR) sector, driving economic growth and job creation. However, they face significant challenges that threaten their survival.

Juan Hanekom, the national director of the South African Motor Body Repairers’ Association (Sambra), advocates for stronger protection measures, focusing on ethical procurement and improved payment terms.

Small, medium and micro enterprises (SMMEs) are vital to the automotive sector, fostering innovation and creating employment. MIBCO (Motor Industry Bargaining Council) statistics reveal that 74.29% of registered MBR employers have fewer than 10 employees, and 60.79% employ only one to five people. Sambra’s data reflects a similar trend.

“These businesses are crucial for job creation and national production targets,” says Hanekom. “They drive innovation and enhance the industry’s competitiveness.”

However, delayed payments, restrictive clauses and unfair rebates from larger industry players are placing immense pressure on these small businesses. This impacts cash flow, limits growth and can lead to closures.

Hanekom stresses the need for stringent enforcement of ethical practices. “The MBR sector’s sustainability depends on fairness,” he says. “Small repairers cannot bear the financial burden of delayed payments and prejudicial rebates, especially with increasing compliance costs.”

South Africa’s unemployment crisis, particularly among young people, adds urgency to this issue. “Supporting small MBR businesses is directly linked to job creation,” Hanekom emphasises. “Fair policies can drive employment opportunities.”

Sambra is also concerned about the loss of skilled artisans. “We’ve seen a significant decline in panel beaters and spray painters since 2014,” Hanekom warns.

He urges stakeholders, government, insurers, suppliers and corporations to adopt ethical practices, including:

• Fair payment terms: Timely payments without unfair clauses.

• Stronger enforcement: Ensuring fair competition for small businesses.

• Value chain integration: Promoting partnerships and skills development.

“Protecting small MBR businesses is crucial for our industry and the broader economy,” Hanekom concludes. “A fair and transparent ecosystem is essential for their success.”

Source: Cathy Findley PR