Automotive Skills
Automotive Skills Regional Contact:
Steve Scofield, Head of Skills Development
Institute of the Motor Industry
Automotive Skills
Fanshaws
Brickendon
Hertford
SG13 8PQ
T: 01992 511521
T: 01992 511521
M: 07876 252248
E: steves@motor.org.uk
E: steves@motor.org.uk
www.motor.org.uk
Learning and Skills Council Contact: simon.wigington@lsc.gov.uk
Click here for the Automotive Skills North East Fact Sheet
Overview of the Sector in the North East
Brief description of the sector in the North East
The sector covers all businesses and people involved in the sales, maintenance and repair of new and used vehicles including passenger cars, motorcycles, commercial vehicles, light and heavy trucks, fork lift trucks and specialist vehicles throughout the UK (England, Scotland, Wales, Northern Ireland). It comprises: providers of servicing, maintenance, repair and valeting services, bodyshops (repairers, rebuilders and refinishers), vehicle inspection and MOT testing, specialist sellers and fitters of parts, accessories, and motor fuels, vehicle rental, leasing and fleet management and insurance, roadside assistance and recovery.
The motor industry sector is an economically significant sector contributing considerably to the UK’s GDP. (Regional Fact Sheet 2005)
Many of the 2,449 workplaces are small businesses playing a key role in their local economy and community; 86% have less than 10 employees. (Regional Fact Sheet 2005). We cannot update this figure yet. However, the National Employer Skills Survey 2004 estimates that there are 1,873 establishments in the North East (the figure is lower because the NESS excludes all sole-proprietors).
In strategic terms, the sector is significant, extending beyond core motor industry businesses. It impacts in many economically and socially vital sectors where continuous and high-levels of vehicle utility, through a combination of acquisition, fleet management, servicing, repair, sourcing of parts and fuelling, is vital. The sector must provide the capacity and/or competence to ensure the roadworthiness and safety of all vehicles. (Regional Fact Sheet 2005)
Three quarters of the workforce are male (75%) compared with (79%) nationally. (Regional Fact Sheet 2005) The latest update for the Labour Force Survey says that the male/female split in the North East is 83% Male, compared to 53% in the economy as a whole.
The vast majority are white (100%) compared with (94%) nationally. (Regional Fact Sheet 2005) The latest Labour Force Survey shows that 100% for the Retail Motor industry is accurate. The figure for all sectors of the economy in this region is 98% though.
Nationally the proportion of workforce with NVQ3+ or equivalent is 41%. (Regional Fact Sheet 2005) There are not enough data in the Matrix to show the figures for this variable, so we will have to use this one.
Key issues facing the sector now and in the future (including both opportunities and challenges)
Globalisation, increased consumer expectations and more stringent environmental controls, plus technological developments and increased product reliability, have had a huge impact on the motor industry in the past 20 years. This process, which is set to continue and even accelerate, has left the industry facing many challenges. Skills and their direct relation to the sector’s overall competitiveness and profitability lie at the very heart of these challenges.
The sector faces a constant challenge in: up-skilling to create and sustain a competitive workforce, to tackle particular training gaps and an ageing workforce resulting in skills shortages, ‘poaching’ and a poor consumer reputation. (Regional Fact Sheet 2005)
Employment Issues in the North East
Current and forecast recruitment demand (either for growth or replacement)
23,836 people are employed in this sector with growth forecasted at 3% between 2002 and 2014. (Regional Fact Sheet 2005) Current figures suggest 23,044 employed in the sector in this region. This is out of 1,096,217 people across every sector in this region. Thus, the automotive share is 2.10%.
Current demand in the North East is actually slightly lower than the national average, however the major issue facing the sector is that of perception, it is not perceived as an industry that offers rewarding career paths. The industry is not promoted in a positive light by careers advisors, teachers, parents or the media, because most perceive little value in the sector or have had a negative experience, which is not a surprise given that the majority of dealings with the sector are a result of a distress purchase.
Current demand in the North East is actually slightly lower than the national average, however the major issue facing the sector is that of perception, it is not perceived as an industry that offers rewarding career paths. The industry is not promoted in a positive light by careers advisors, teachers, parents or the media, because most perceive little value in the sector or have had a negative experience, which is not a surprise given that the majority of dealings with the sector are a result of a distress purchase.
Retention issues
There are staff retention issues, and these can generally be traced back to management or salary issues, and in the individual feeling undervalued and often having little loyalty or motivation to progress.
Skill requirements of new recruits
Automotive Skills have also piloted events aimed at careers advisors and teachers in order to educate them as to the skill requirements of new recruits, and to press home the fact that this is not an industry that only needs technical people but one which needs people with skills in communication, numeracy and IT. These skills are extremenly important in the non-technical roles within a modern automotive dealership. It is no longer an industry where you can become a mechanic/technician if you cannot read or write, or if your abilities are questionable, today’s vehicles are highly technical, the ability required to service, maintain, diagnose or repair accident damage is high level.
Workforce Development in the North East
Skills shortages/gaps in existing workforce and latent skills issues, to include, where possible, detailed information relating to specific occupations and generic issues (e.g. relating to management and leadership; ICT etc).
345 (13%) of NE firms reported vacancies compared to 15% nationally. 7% of NE firms reported HTF vacancies compared with 9% nationally. (Regional Fact Sheet 2005) The figure is now 300 (13%) compared to 25,700 across all sectors (17%).
128 firms (5%) reported skills shortages with 17% of firms reporting internal skills gaps. (Regional Fact Sheet from NESS 2003) The figure is now 200 firms (8%). The number of firms reporting internal skills gaps has risen to 24%. The figure across all sectors is 18%.
The sector faces a constant challenge in up-skilling to create and sustain a competitive workforce, to tackle particular training gaps and an ageing workforce resulting in skills shortages, ‘poaching’ and a poor consumer reputation.
Automotive Skills wants to encourage all employers within the industry to unite behind a common purpose - to pursue a training and skills agenda that will enable the UK motor industry to go from strength to strength.
There are a number of key issues facing the sector, and these include Management Development, technical skills, customer facing skills, recruiting new talent, ethnicity and gender issues, all of which will be quantified further upon completion of our Sector Skills Agreement “Automotivate”.
Management and Leadership
When the data is analysed, barriers can be traced back to Management. As an industry we have historically promoted individuals and then left them unsupported. Automotive Skills with the IMI and the Chartered Institute of Management launched the Automotive Retail Management Standards (ARMS) in 2004 to address the issue. A number of vehicle manufacturers and dealer groups are highly supportive of the standards, as they are measurable both within the industry and externally.
Learning and Skills Infrastructure in the North East
Lack of suitable courses in the area was stated to be a barrier for only 18% of automotive companies compared to 23% nationally. (Regional Fact Sheet 2005 from NESS 2003)
Similarly, lack of suitable courses generally was considered a barrier for only 16% of companies in the NE compared to 21% in England as a whole nationally. (Regional Fact Sheet 2005 from NESS 2003)
Relevance and quality of existing provision
One national provider to the sector has removed exam grades from their apprentice application forms as they do not perceive them as a benefit, they do however put all potential candidates through a technical and basic skills assessment of their own design.
Barriers to employers accessing the skills provision they need
65% of firms had provided training in the last 12 months compared to 55% nationally. (Regional Fact Sheet 2005 from NESS 2003)
The most commonly mentioned barriers to training are lack of funding, 27% compared to 30% nationally. A lack of time for training was also stated to be a barrier for 27% of companies in the NE compared to 30% nationally. (Regional Fact Sheet 2005 from NESS 2003)
27% of employers cite lack of funding as a barrier, this should be further embellished when our SSA is complete, evidently there has been various research published that have all proven the link between training and productivity and ultimately profitability. Taking this into account is the funding the real barrier or are there other issues such as management etc, or potentially limited perceived value in that the individual is not allowed to implement what they have learned.
27% cite lack of time as a barrier, again this could relate to management in terms of managing a diary and staff, presumably the business manages when an individual is on holiday?
21% cite lack of cover for training as an issue, this is a National issue (36%) where it is easier to cancel an employees training because it is busy or someone is off sick etc, unfortunately a short term fix when a long term view should be taken.
18% - lack of suitable courses in my area – this will be quantified during the SSA, most Franchise training is now undertaken at Manufacturer facilities on a national basis, and if training is ran for independents on a regional basis, the dropout rate is high due to lack of cover.
15% - unwillingness of staff to undertake training – this is probably one of the key areas, why are staff unwilling? As per the earlier point most employees are not debriefed or allowed to try new learning’s. We need to ensure that training is not being delivered for training’s sake, and that a quantifiable benefit results from the training should this happen then employee buy in will be substantially higher.
Best Practice
Are you aware of existing interventions that work well in addressing employment or skills needs in the sector?
Automotive Skills are addressing staff retention issues on a number of different fronts, e.g. a magazine is produced in collaboration with the Independent that is focused on the opportunities of the sector and contains case studies to promote the career paths available. In addition Automotive Skills produce an Autocity CD Rom that explains the entry level requirements and the options open to people within the sector.
Automotive Skills were also one of the original pathfinders for the Young Apprenticeship scheme and this has now been expanded from the original four pilot centres to eighteen centres. The Young Apprenticeship Programme is now moving into its 4th cohort and has great results from the first achievers. Some 75% who complete the level 2 programme at school have continued into the sector as advanced apprentices.
