It’s no secret that the automotive sector is suffering a skills shortage. A simple search of the topic returns references as long as an arm.
“Skills crisis warning for UK automotive sector”, “Automotive industry skills gap wider than other industries”, “Is there an automotive skills shortage?” , and “UK faces shortage of 3000 EV technicians by 2031”. There are plenty more.
Mid-May 2024, a new report, Skills 2030; Building a World-Class Skills System was launched in Westminster. It featured contributions from multiple industries and sector organisations including the Institute of the Motor Industry (IMI) and two universities.
Just a couple of months earlier, in March, the IMI found that vacancies in automotive numbered close on 23,000 – a rate that it reckoned was greater than in any other sector of the UK economy.
Kevan Wooden, CEO at LKQ UK & Ireland, acknowledges this figure and thinks that before anything can be done about it, “we need to make sure that discussions around how we address this become a national conversation, rather than one confined to our own industry.”
Interestingly, cross-party think tank Policy Connect believed that late last year (2023), the skills gaps in manufacturing alone was “costing between £7.7 and £8.3 billion annually in lost economic output.” It added that “skills shortages have been further compounded by the UK’s departure from the EU and the COVID-19 pandemic, both of which have reduced … access to skilled labour.”
But is the news all doom and gloom?
Changing landscape
Kevin Finn, Executive Chair of the Institute of the Motor Industry, thinks that despite the number of vacancies to fill, that “there is clear evidence that the sector is steadily chipping away at the significant skills gap”. He says this because his body’s most recent Vacancy Rate Tracker – based on data from the Office of National Statistics – “confirms a reduction in vacancies, but the numbers remain small.”
He suggests that some of the problem is down to uncertainty over the ending of ICE-powered vehicles production. In particular, he says that “whilst there has been an encouraging growth in the number of technicians specifically gaining EV certification this year, we do expect to see the new government reinstate the 2030 ICE ban deadline.” This, in his view, means that “we urgently need to prioritise training more technicians to ensure increasing numbers of EV owners can find a local qualified technician.”
But it’s clear that technicians need to be more than ‘grease-monkeys’.
Andy Turbefield, Head of Quality at Halfords, is particularly bothered by the sector’s image as well its lack of skills: “When asked for an image of a car mechanic, often the first thought is of a ‘Kevin Webster or Phil Mitchell type’, in dirty overalls and oily hands and face. This stereotype does little to attract the students who are typically those we now search for, with good maths, English and communication skills.”
He too sees demand for new skills in automotive, such as electrification, automation and connectivity which “are suited to both genders.” But to attract a more diverse group of students he thinks the stereotypes need to change.
And Finn doesn’t disagree with the need to learn about the new: “Technology advancements are without doubt the most significant challenge we face. AI, cloud technology and new business models like As-a-Service offerings are set to redefine the automotive industry in the coming years.”
Direction from government
Government sits at the top of society and is an enabler. This is why Finn says that “government must ensure infrastructure and pathways are built to improve the level of educators/trainers in automotive, and that the sector is fairly represented in the education curriculum from early years upwards.”
The creation of Skills England that brings together government, businesses, unions and training providers is a good first step for Finn. Indeed, he says that the IMI “will be proactively representing the views of the automotive workforce and employers as the Apprenticeship Levy is reformed with a Growth and Skills Levy.”
And for Turbefield, improving standards of students is essential for success to breed success and so help the sector compete with other sectors for candidates.
As he highlights, “although we had a strong recruitment campaign which will see 150 new apprentices start with us by October, over the last five to ten years, the number of high-quality students that have followed through…to become fully qualified has reduced.” He blames this on “a lack of governmental direction in skills and the introduction of the apprenticeship levy, but also the automotive sector itself through under investment.”
Turbefield, like Policy Connect, sees geo-political events – Brexit, Covid and conflict – as diminishing the pool of potential automotive students. A matter made worse, when he comments that “the pandemic saw many companies make their apprentices redundant to reduce short term costs.”
Regardless, he says that the sector needs help: “We’d like to see the government expand the Apprenticeship Levy to make it easier to use funds to train existing employees on new technologies, as well as continuing to offer apprenticeships to bring new talent into the automotive industry.” Specifically, Halfords would like to be able to use the levy to train staff to service, maintain and repair electric and autonomous vehicles.
Sector should help itself
But just because government can pull levers that doesn’t mean that the sector shouldn’t attempt to help itself. As Wooden comments – from an LKQ perspective, “we have a duty to support our customers in navigating the obstacles.” He adds that the “LKQ Academy is the most comprehensive training solution available to the aftermarket” and offers individual and workshop memberships with courses that range from entry level to more complex topics such as ADAS and dealing with EV and hybrid vehicles.
Halfords has done something similar according to Turbefield. He comments that, for example, while apprentices need to complete one qualification level before moving onto the next, “many students are turned away either by their own lack of confidence or by the employer before their apprenticeship even begins due to not meeting these [qualification] requirements at point of selection.”
Consequently, “Halfords,” he says, is “working with charities such as First Step Trust and the Palmer Foundation and the IMI to help support apprentices with literacy and numeracy during their apprenticeship so that capable candidates do not miss the opportunity at the outset.” Notably, the company specifically helps students from disadvantaged backgrounds, with low self-esteem, low confidence, and disabilities. As he says, “literacy and numeracy cannot become a blocker, but along with personal circumstance and disability, it is becoming increasingly so.”
Turbefield also points out that “wage inflation, resulting from employers having to pay to attract and retain good technicians, means that recruitment is no longer the obvious solution.” The only answer from his standpoint is to “recruit more apprentices and develop skills from within.”
And training does work says Turbefield: “When measured over the years, colleagues who attend internal training have a 40% greater retention than those who did not develop their skills.”
However, the same is not true of all technicians – those that are older don’t always like to go ‘back to school’ to learn.
Summary
Ultimately the sector needs to adapt to the new technologies that are both here and on the way.
The only way forward is, as in the professions – legal, accounting and medical – to undertake ongoing training and continuous professional development. Not only will this help with skills but will engender the view that automotive is a solid career option.
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