Research reveals road ahead
A new report prepared by VACC shines a light on the auto industry and what it means for the motorists it serves. Key findings in Directions in Australia’s Automotive Industry 2021 include:
- There are more than 72,000 registered businesses operating across the automotive industry, employing 384,810 people.
- The industry contributes $39.35 billion to Australia’s GDP, approximately 2.1 percent of the country’s economy.
- Nationally, 52 percent of automotive businesses are experiencing a shortage of skilled labour. Skill shortages in regional areas are more severe than in metropolitan areas.
- The current industry skilled labour deficit is estimated at 31,143 positions nationally, the highest number ever recorded. This deficit is forecast to rise to 38,700 positions by 2022/23. Light vehicle mechanics represent the largest single skill shortage with a deficit of 17,509 positions.
- Demand for automotive apprentices is expected to be more subdued over the next two years. Potentially, there could be up to 11,000 fewer automotive apprentices hired by automotive businesses.
- By 2030, battery electric vehicles are expected to comprise up to 26 percent of new vehicle sales in Australia. Electric vehicles could be the catalyst that significantly alters or dispenses with the existing dealership network model, due to the supply of electric vehicles being via a dealership or direct from the manufacturer to the consumer.
These are just some of the findings contained in Directions in Australia’s Automotive Industry 2021, which provides a fascinating insight into the state of our industry.
The report is available for free download.
Words: VACC CEO, Geoff Gwilym. As featured in the Herald Sun 4 June 2021.
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