The Automotive Industry is facing a Skill shortage

Technology plays a vital role in today’s automotive industry; however, the market is more dependent on human resources. Unfortunately, USA’s automotive industry is facing a skill shortage at all seniority levels. This leads to more people losing jobs, and finding the right one is becoming challenging. 

Episode Synopsis

A skilled workforce is critical for all the operational stages, right from vehicle to spare part manufacturing, sales, repair, and whatnot. The industry is shifting rapidly from mechanical and engineering-based models to electrical and software-driven structures. But are there enough qualified people to meet the demand?

There’s a dire need to onboard experts who are adept at the latest technology. They should also be willing and capable of training the existing workforce. As per research highlighted at a summit, an internal-combustion engine needs 10 workers, whereas an electric motor requires just one. 

The shortage of digital and data experts is critical to the automotive industry as it is competing with other sectors that are in search of experts with the same skill sets. Manufacturers are finding it extremely challenging to fulfil their engineering needs. Moreover, the service and repair departments are facing supply shortages. As per industry experts, the situation is so intense and widespread that there isn’t a quick solution to resolve it. The global automotive sector is predicted to face a massive shortage of 2.4 million skilled workers by 2025 and 4.3 billion by 2030.

Companies are increasingly implementing their own software packages in vehicles which means they’ve to hire highly competitive human resources. They should reach out to schools, colleges, and universities to train the upcoming vehicle developers and sharpen their skill sets; this will turn out to be a mutually beneficial initiative. Optimistically, the higher authority personnel have already begun robust resourcing drills. Diversity and inclusion are now becoming a new cornerstone of recruiting drives. 

This can work wonders, especially when it comes to filling higher positions, as mature employees have often been neglected in the diversity and inclusion debate. Companies are required to be more flexible in accepting hybrid and work-from-home models. 

In the race to bag the best employees, companies have resorted to offering higher salaries and better perks, including signing-on bonuses or bonuses after completing the probation period. Salaries for engineers had risen by 50%. 

Final Thoughts

It’s important to recognize, address, and work towards resolving the issue of skill shortage in the automotive industry. The turbulence in this sector can be sorted if companies train aspiring engineers studying in schools, colleges, and universities so that they require minimal training when their jobs commence. 

Diversity and inclusion are other ways to bridge the gap and bring the industry back on track. The problem of limited and unqualified human resources isn’t limited to vehicle manufacturing. People employed in the dealership department need to learn about software and technology to communicate with customers and prospects. Moreover, the aftermarket repair sector also requires training.