INDUSRTY NEWS
ADVOCATING FOR STRENGTHENING PROTECTIONS FOR SMALL BUSINESSES IN THE MOTOR BODY REPAIR SECTOR
The motor body repair( MBR) sector in South Africa relies heavily on small businesses for economic growth, job creation, and industry innovation. However, these small businesses face continuous challenges that jeopardize their sustainability, despite their crucial role
The National Director of the South African Motor Body Repairers’ Association( SAMBRA), Juan Hanekom, advocates for stronger support and protection for small businesses within the sector. Hanekom, whose organization is a part of the Retail Motor Industry Organisation( RMI), emphasizes the need for ethical procurement practices and more efficient payment terms to foster growth in the sector.
SMMEs are crucial to South Africa’ s automotive industry, bringing innovation and job creation. MIBCO statistics show that of the 2,030 registered MBR employers, 74.29 % have less than ten employees, and 60.79 % have only one to five. This trend is reflected in SAMBRA members, where 53.11 % have less than ten employees, and 37 % have between zero and five.
The MBR’ s smaller businesses are integral to the industry, but they are endangered by some larger unfair business practices. These practices include delayed payments, restrictive settlement clauses, and unfair rebate conditions, all of which stifle cash flow and growth, sometimes to the point of closure.
Hanekom stresses the need for more stringent enforcement of ethical procurement practices and payment structures that do not disadvantage small repairers.“ The sustainability of the MBR sector depends on fair business practices. Small enterprises cannot continue to bear the financial strain of delayed payments or prejudicial rebate clauses.“ The reality is that with vehicle technology having become more complex, the cost burden of compliance has also increased so it is a double-edged sword for small players who now also have to bear the impact of ever shrinking margins. If we are serious about fostering a thriving, inclusive automotive industry, we need to ensure that SMMEs have the financial security and operational stability to grow,” he says. South Africa’ s unemployment crisis continues, with the official unemployment rate decreasing only slightly from 32.1 % in Q3 2024 to 31.9 % in Q4 2024. Youth unemployment( ages 15-34) is particularly concerning, with a rate of 44.6 %.
“ Given the MBR sector’ s role in employment, particularly among small businesses, ensuring their survival and growth is directly linked to job creation. Policies and industry practices that support small businesses can help drive employment opportunities, particularly in a country struggling with high levels of joblessness,” stresses Hanekom. SAMBRA is concerned that these combined factors are contributing to the exit of qualified artisans from the industry.“ One only has to look at the stats to see that when compared to 2014 we now have 32 % less panel beaters and 30 % less spray painters.”
Hanekom is urging ethical business practices that safeguard the future of small repairers. He asks that all stakeholders including the government, insurers, suppliers and large corporations adopt these practices. These include:
• Fair and efficient payment terms: Timely payments with no settlement or rebate clauses that disadvantage small businesses.
• Stronger enforcement of ethical procurement policies: Ensuring that small businesses have a fair opportunity to compete and thrive.
• Greater integration into the value chain: Encouraging partnerships and support programs that enhance skills development and long-term sustainability.
“ Prioritising the protection and growth of small businesses in the MBR sector must remain a key priority, not only for our industry, but for the broader economy and employment landscape as well. The success of the motor body repair industry hinges on a fair and transparent ecosystem where small businesses can flourish,” concludes Hanekom.
aBr WORDS IN ACTION 14 MAY 2025