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MTAA: Skills shortage requires urgent Government action

by Robert Barry
March 7, 2024
in Industry News, Featured
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Recent analysis commissioned by the Motor Trades Association of Australia (MTAA) has uncovered extensive skills shortages plaguing the automotive sector nationwide.

The findings in a comprehensive report underscore the urgent need for government intervention to address the escalating crisis.

“The industry has a growing skills shortage problem, particularly for the emerging EV technician occupation. The industry needs urgent Government assistance to bridge the gap, especially as the New Vehicle Efficiency Standard will accelerate the transition,”  MTAA’s Dr Imogen Reid says.

“Training and upskilling are key to a successful transition to low emissions vehicles,” she says.

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The report, compiled by Deloitte Access Economics on behalf of MTAA, paints a stark picture of the industry’s struggle, with more than 2,000 vacancies advertised in 2023, of which less than 800 were filled. The average industry fill rate is a dismal 39%, significantly below the 67% threshold that Jobs and Skills Australia (JSA) set to designate an occupation as in shortage.

Shortages are pervasive across all states and territories, with regional areas bearing the brunt of the crisis compared to metropolitan regions. 

Occupations such as motorcycle/diesel mechanics, panel beaters, and vehicle bodybuilders are experiencing alarmingly low fill rates ranging between 24% and 27%, further exacerbating the industry’s woes.

Despite being deemed not in shortage by JSA, occupations such as tow truck drivers, tyre fitters, sales representatives (motor vehicle parts and accessories), and motor vehicle parts interpreters/automotive parts, salespersons are grappling with fill rates below the critical threshold, signalling systemic challenges within the sector.

The fill rate for the burgeoning occupation of electric vehicle technicians is a mere 41%, highlighting a pressing need for skilled professionals to service zero- or low-emission vehicles (ZLEVs). This underscores the evolving nature of the industry and the necessity for specialised training and support.

The report identifies several key factors contributing to the crisis, including a need for more skilled/qualified workers, issues with the industry training pipeline, visa challenges, remuneration concerns, and stiff competition from other sectors. 

MTAA urges the government to prioritise addressing these pressing issues and calls for a concerted effort to support technicians and trade professionals in Australia.

Tags: Deloitte Access EconomicsDr Imogen ReidMTAA
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Robert Barry

Robert Barry has been reporting on the Australasian automotive and transport sector since June 2003. A member of the New Zealand Motoring Writers Guild since 2005, Robert has also previously held the positions of secretary, vice-president and president. His work has appeared in newspapers, magazines, and on the web. He holds a Class 2 and a Class 4 heavy transport licence and knows his way around a manual transmission.

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