A poor image, record vacancies and a growing skills gap are among the serious challenges facing the motor industry, according to a new report from the Institute of the Motor Industry (IMI). 

'Driving auto forwards' identifies 10 issues as vehicle technology and the market evolve that, if not addressed, put the industry at risk of being left behind and motorists underserved. 

"The report is a hard look at the motor industry and doesn't pull its punches," said Hayley Pells, policy and public affairs manager at the IMI. "However, there's been no opposition to its findings and recommendations and it has been very useful to put in front of government departments."

Pells, who served in the military before training and working for 16 years as a vehicle technician, acknowledges the problems are many and serious but believes the workforce will adapt and that training is key. She said: "Things are serious but we have a highly adaptable workforce. Technicians who trained in the early 1980s have liked the technology they work with, evolved and kept pace so that they can maintain and repair today's vehicles. This situation is nothing we can't train our way out of."

Another problem highlighted by the report is the motor industry's poor image. "I can't deny it but I believe it's a perception that's 20 years out of date," said Pells. "The fact is as vehicles have changed so have working environments. The majority of garages are bristling with technology and are well run. There are still a few 'under the arches' businesses but just as the car parc is diverse, so are the workplaces. The wonderful thing about the motor industry is that there's something for everybody."

Unfortunately, according to the report, it's an argument that may not hold much water with outsiders considering entering the industry, which is suffering its highest vacancy rate in 21 years. "Vacancy numbers are a serious, serious issue," said Pells. "There's a perception that wages in the industry are low and skills undervalued. When I talk to parents and relatives of young people considering their career choices, they are concerned about wanting something more for them than, as they see it, just a career as a mechanic. That really gets to me. We need to support learners entering the sector, including people making career changes or returning to work."

Despite the challenges highlighted by the IMI report, Pells believes the motor industry is better placed than ever to weather the next few years as the market transitions to electric and as vehicle technology advances. She said: "The most exciting thing about the industry is the diversity of work presented to garages, from classic combustion vehicles to the latest, feature-rich EVs. They're giant puzzles on wheels. I don't know of any other sector having that experience of looking after 50-60 years of technology. That's exciting."

Below, we highlight five of the most pressing issues identified by the IMI report 'Driving auto forwards'.

Record-high vacancies

The motor trade has the highest vacancy rate in 21 years, with five jobs in every 100 unfilled and numbers increasing even as other industries’ rates decline. Vehicle and parts salespeople, and tyre, exhaust and windscreen fitter vacancies are especially affected. Reasons include high numbers of older retirees, technicians dissatisfied with low wages and undervalued skills leaving the industry and "post-Covid job-hopping" as other sectors compete for transferable skills. The IMI says the shortage of staff is encouraging employers to concentrate on their short-term hiring needs rather than planning strategically to upskill for the future. The organisation plans to launch a campaign challenging perceptions of the industry pointing to, among other things, significant pay rises in certain trades, while encouraging employers to consider recruiting staff with transferable skills from other sectors. 

Growing skills gap

The IMI is concerned about the shortage of technicians trained in advanced driver assistance system (ADAS) technologies. At the current level of demand, an additional 9000 qualified technicians are required - a figure that, it says, will grow as technologies develop and regulation mandates their adoption. Meanwhile, although there are around 42,000 technicians (18% of the workforce) qualified to work on electric cars, recent months have seen a 10% decline in the awarding of new qualifications compared with the same period in 2022, a trend the IMI blames on economic and recruitment pressures. The IMI is urging employees to focus on training and education opportunities for employees and address the challenges of qualification uptake and low recruitment levels.

IT dangers

The greater integration of technology in vehicles is driving a demand for technicians capable of interpreting and analysing the resulting performance data, says the IMI. It forecasts that by the end of the year, around 5400 technicians with these skills will be required. Meanwhile, the demand for data and professional IT skills across other departments is set to rise to 14,500 in the same period. Without suitably qualified technicians, the IMI warns of data vulnerability and declining service levels. In support roles, it says the convergence of IT in automotive systems creates new potential for data breaches and system hijacks posing risks, including safety concerns, privacy violations and reputational damage. The IMI recommends employers invest in training, recruit IT specialists, foster a data-driven culture and strengthen their cybersecurity. 

Low employee diversity

Too few women in senior roles, limited representation of non-white British individuals in automotive retail relative to the broader population and persistent negative perceptions of the industry are three issues holding back diversity and, ultimately, the industry, says the IMI. For example, in automotive retail, female representation is at 18%, compared with 47.3% in the overall working-age population, and non-white British representation at 9.5%, compared with 19%. Meanwhile, research into the perceptions of automotive careers among young people shows them to believe the industry is dull, dirty and male-oriented, this last impression, at least, supported by the data. The IMI says it has taken steps to reverse these trends with its 'There's more to motor' campaign promoting diversity and its 'Diversity pledge' encouraging signatories to encourage and facilitate diversity in their companies. 

Aging car parc

The IMI says that the decline in new cars sales during and following the pandemic has given rise to an aging car parc, resulting in a growing need for professionals skilled in vehicle refurbishment, as well as parts and component manufacturing as older parts are withdrawn from sale. At the same time, the rise in sales of newer, technologically advanced vehicles, including EVs, will require a workforce that can adapt and upskill to handle diverse vehicle types. In addition to investing in skills and training, the IMI recommends businesses share knowledge of older vehicles with each other, manufacture legacy components and explore sustainable maintenance solutions.