Investing in career and technical education to ease auto industry labor shortages

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What you will learn:

• The reasons behind the auto industry workforce shortages

• How technician shortages equate to higher consumer costs

• Higher level technical knowledge and skills are increasing in demand

In the automotive industry, businesses are facing a difficult problem: workforce shortages. According to a 2020 TechForce Foundation report, the auto industry will be short by approximately 642,000 technicians (automotive, diesel, and collision) by 2024.  

This issue has a variety of causes: an aging workforce, high turnover, and a low number of new, young talent entering the field all contribute to the technician shortages. According to the TechForce Foundation report, only 5,015 technicians graduated from the 10 largest providers of post-secondary automotive degrees in 2018.  

During the COVID-19 pandemic, when many automotive repair shops were forced to temporarily close and furlough workers, the shortage of technicians still prevailed. Workforce shortages translate into longer wait times and increased costs for consumers seeking repairs for their vehicles. Coupled with supply chain delays and increased cost for repair parts, technician shortages are putting a real strain on the auto repair industry. 

Even before the pandemic, enrollment at automotive technician schools and community colleges was slipping. One potential cause for this decline is the prevailing perception that automotive technician jobs are not “good” jobs. However, advocates in the auto industry will point out that as cars become increasingly computerized, a job as an auto technician requires high-level technical knowledge and skills.  

To ease the workforce shortage in the auto industry, it may be necessary to reframe and advertise a job as an auto technician as a highly skilled, well-paid profession that is a viable and attractive option for young people entering today’s workforce. Investments in community colleges, technical schools, and apprenticeship programs are important tools for training a new generation of automotive technicians.  

Last year, the U.S. House of Representatives passed H.R. 447, the National Apprenticeship Act of 2021. If passed, this legislation would invest more than $3.5 billion in the Registered Apprenticeship program over the next five years and would establish a dedicated Office of Apprenticeships within the U.S. Department of Labor (DOL). The bill would create 1 million new apprenticeship opportunities and would be the first time that the National Apprenticeship Act was reauthorized since it was first passed in 1937.  

Right now, this legislation has more than 90 bipartisan cosponsors and awaits a vote by the U.S. Senate. It is unclear whether this legislation will be seriously considered during the 117th Congress.  

The Biden Administration has endorsed the National Apprenticeship Act of 2021, and President Biden has consistently professed the value of apprenticeship programs as well as community college and other technical education programs as a positive pathway to connect the American workforce to family-supporting jobs. In early 2021, President Biden asked the U.S. Department of Labor to reinstate the National Advisory Committee on Apprenticeships. This advisory committee is comprised of stakeholders across the country who are tasked with building a registered apprenticeship program that works in all communities.  

As investments in electric vehicles continue to increase, the need for highly skilled technicians able to navigate and repair complex computerized vehicle systems increases as well. Over the next decade, the automotive repair industry appears to be one of the most stable sectors to be employed in, even as consumer habits and technology trends shift the employment landscape in other industries. The U.S. Bureau of Labor Statistics predicts virtually no change in the number of automotive technician jobs through 2030, meaning that new members of the workforce can enjoy stable job security.  

Recruiting and retaining new talent in the automotive industry will be essential to remedy the shortage of automotive technicians. Investments by the federal, state, and local governments in apprenticeship, pre-apprenticeship, community college, and technical school programs are now more important than ever to ensure that repair shops continue to have a steady supply of good, hardworking, and talented employees.