Australia, Transport News

Automotive skills shortage likely to impact freight businesses

A disturbing downward trend in the number of people taking up automotive trades has this industry association calling for action

The Motor Traders’ Association of New South Wales has raised the alarm on the lack of new talent coming through in automotive technician ranks and the impact it is likely to have on productivity and fleets across the nation.

MTA NSW CEO Stavros Yallouridis says the skills pipeline is failing to keep up with the nation’s growing demand for maintenance and repair.

“This shortage isn’t new, but it’s getting worse, and the consequences are now being felt across the economy,” Yallouridis says.

“We have been warning for years that the lack of qualified technicians would cripple productivity.

“It’s not just about filling jobs; it’s about keeping essential industries moving. Every freight truck, every regional service van, every family car depends on this workforce.”

The latest Occupation Shortage List released by Jobs and Skills Australia confirms Australia’s automotive skills shortage has deepened, with critical roles in shortage across every state and territory.

The national data shows widespread shortages across the automotive workforce, including light and heavy vehicle technicians, auto electricians, panel beaters, and spray painters.

With Australia’s vehicle fleet now exceeding 22 million vehicles travelling more than 260 billion kilometres annually, and the automotive industry contributes over $40 billion to Australia’s GDP each year, MTA NSW CEO Mr Stavros Yallouridis said the skills pipeline is failing to keep up with the nation’s growing demand for maintenance and repair.

“This shortage isn’t new, but it’s getting worse, and the consequences are now being felt across the economy,” Mr Yallouridis said.

“We have been warning for years that the lack of qualified technicians would cripple productivity. It’s not just about filling jobs; it’s about keeping essential industries moving. Every freight truck, every regional service van, every family car depends on this workforce.”

Motor mechanics – now classified by the Australian Bureau of Statistics as ‘automotive technicians’ – and auto electricians have appeared on national, state and territory skills shortage lists for over a decade.

The MTA says that despite repeated inquiries and consultations from Jobs and Skills Australia, state education departments and parliamentary reviews, little tangible action has been taken to reverse the decline.

“We have an aging workforce, businesses in regional and rural areas closing due to lack of qualified staff, and fewer young people entering trades at all,” Yallouridis says.

The National Centre for Vocational Education Research (NCVER) 2024 Generation Z: Life After COVID report found only 67 per cent of 24-year-olds held a qualification, down from 77 per cent in 2012, and just 54 per cent were in full-time work.

“These figures show that young Australians aren’t getting the training or the job opportunities they need, and the automotive industry is feeling that acutely.

“If governments don’t act now to strengthen the apprenticeship and training pipeline, this shortage will only deepen, taking small businesses and essential services down with it.”

MTA NSW is calling for a national action plan with coordinated investment in training, incentives for apprenticeships, and recognition of the automotive industry’s role as a key enabler of national productivity.

“Without qualified technicians, the costs flow to everyone – higher repair times, business downtime, and reduced freight efficiency. We need urgent, coordinated action to address this skills gap around the country.”

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