In the lead up to the state budget, The Motor Traders’ Association of NSW (MTA NSW) is calling for the NSW government to address the critical skills shortage in the automotive industry, by exploring alternative options for apprenticeship training.
In spite of historically low unemployment rates, the industry continues to grapple with a severe shortage of skilled workers. According to MTA NSW, this makes it imperative for the state government to take immediate action.
In recent statements before Parliament, the NSW Treasurer highlighted a shortfall of hundreds of millions of dollars in funding for training in the upcoming state budget.
This serves as a reminder of the trans-governmental funding issues that plague the Vocational Education and Training (VET) sector says MTA NSW. It says the inconsistent funding to Registered Training Organisations (RTOs) and Technical and Further Education (TAFE) institutes has placed an increasing burden on industry to fill the void.
MTA NSW says a robust and diverse VET sector is the key to bridging the current skills gap and ensuring a steady pipeline of skilled tradespeople for the future workforce. The NSW government must invest in innovative solutions, particularly as the adoption of Electric Vehicles (EVs) gains momentum, exacerbating the shortage of skilled workers.
MTA NSW’s Registered Training Organisation (RTO) general manager Ian Price says that NSW desperately needs more apprentices to help tackle the skills shortage.
“We are urging the state government to explore all viable alternatives for employers, and to continue to fund automotive apprenticeships,” Price says.
“With more government-funded placements, RTOs can complement the TAFE model and ensure a continuous supply of skilled tradespeople joining the automotive workforce.
“RTOs are particularly valuable in rural and remote areas, offering apprentices the option of onsite training models that do not burden students or businesses with extensive travel times and additional costs. Furthermore, non-traditional methods of learning can better prepare students for their careers,” he says.
According to the NSW Productivity Commission’s 2021 White Paper, titled ‘Rebooting the Economy,’ light vehicle technicians, automotive electricians, and spray painters have been on the skills shortage list for over two decades, necessitating immediate and decisive action.
MTA NSW, as the primary industry association in NSW, acknowledges the urgency of the situation and has taken significant steps to address the prevailing skills shortage. The association has heavily invested in its not-for-profit RTO to ensure a continuous supply of skilled professionals for automotive workshops across the state.
“The fate of the automotive industry in NSW lies in the hands of the government and industry stakeholders,” MTA NSW chief executive Stavros Yallouridis says.
“Failure to act swiftly and decisively may lead to long-term ramifications for the state’s economy and the ability of industry to meet the demands of a rapidly evolving automotive landscape,” he says.
