Automotive and mobility sector faces significant skills shortage

The automotive and mobility industry is facing a skills shortage “at all levels of seniority”, according to a new report from Ennis & Co.

It warns that businesses will become ill-equipped to take advantage of technological advances in electrification and digitalisation, leading to spiralling wage inflation as competition for talent intensifies.

Shortages of digital and data experts are particularly severe as automotive and mobility companies experience competition from other sectors for the same ‘hot’ skills. Manufacturers are also facing a tough battle to meet their engineering needs, while service and repair technicians are reported to be in extremely short supply.

Lynda Ennis (pictured), founder and CEO of Ennis & Co, said: “The reality is that skills shortages are so deep and widespread that there is no magic answer to fix the problem.

“Nor is the situation going to get any easier, with the automotive sector predicted to face a global shortage of 2.3 million skilled workers by 2025 and 4.3 million by 2030.

Ennis will be chairing the diversity and inclusion (D&I) breakfast panel at Fleet Mobility Live in October, where the skills shortage will be discussed in greater detail.

The research project, Skills Evolution Roadmap 2025, asked 44 senior business leaders from all areas of the industry – including CEOs, Vice-Presidents and Presidents –  not only to identify the key skills shortages they were facing but to discuss the strategies they were pursuing to address the problem.

Many reported a significant expansion of entry-level recruitment in the shape of apprenticeship programmes and graduate trainee schemes, while there is an increased focus on workplace culture, including D&I initiatives, to attract and retain staff. Remote and hybrid working is now widespread across the industry.

Ennis explained: “It is clear from our research that there are already some excellent resourcing initiatives taking place within the industry and it is very positive that diversity and inclusion is now a cornerstone of recruitment strategy.

“I believe there is potential to take this further, particularly in the area of more mature employees, who have been so often neglected in the D&I debate. People in this demographic – mainly the over-50s but sometimes even people in their late 40s – have the choice whether to work or not but offer advantages of experience, maturity and commitment, particularly in an environment that embraces part-time and flexible working.”

Businesses have resorted to paying more to fill vacancies by offering higher starting salaries, signing-on bonuses or bonuses paid at the end of probation periods. One manufacturing leader revealed that starting salaries for engineers had risen by as much as 50%, while a senior executive at a retail group said a rival had poached their workshop technicians by offering them a £9,000-a-year pay rise.

Ennis added: “The situation is so serious and business critical that is clear that resourcing strategy must be given the highest priority by businesses, including being managed at boardroom level, with the appropriate commitment, investment and accountability.”

Fleet and Mobility Live is being held on October 11-12 at the NEC, near Birmingham, and will feature a packed schedule of expert best practice and case studies that tackle the most pressing issues facing fleet and mobility professionals.

The EV Theatre, Fleet and Mobility Management Theatre and Benefits Box will feature presentations on a wide range of topics from electric vehicle charging and maintenance, to fleet safety, upskilling fleets for the future, mobility benefits best practice and much more.

Fleet decision makers can register for a free ticket here.