Industry insights on skills needs
The Automotive IRC’s 2019 Skills Forecast ranks a list of generic skills in order of importance for each industry sector. The top five ranked generic skills for the Automotive Light Vehicle sector (inclusive of mass passenger vehicle manufacturing) are:
- Technology use and application
- Language, literacy and numeracy (LLN)
- Design mindset/Thinking critically/System thinking/Solving problems
- Science, technology, engineering and maths (STEM)
- Communication/Collaboration including virtual collaboration/Social intelligence.
In addition, the Automotive IRC’s 2019 Skills Forecast also ranked a list of generic skills in order of importance for the Automotive Heavy Vehicle sector (inclusive of heavy vehicle manufacturing):
- Language, literacy and numeracy (LLN)
- Science, technology, engineering and maths (STEM)
- Design mindset/Thinking critically/System thinking/Solving problems
- Learning agility/Information literacy/Intellectual autonomy and self-management
- Technology use and application.
The Automotive IRC’s 2019 Skills Forecast highlights expected increases in the demand for commercial vehicles, largely fuelled by forecast growth in mining and heavy industry construction along with growth in heavy vehicle transport. In 2018 motor vehicle census data identified light rigid trucks as the fastest growing vehicle type, with year on year growth of 5.1%. To support this anticipated growth, the industry will need workers who have the relevant skills and knowledge in heavy vehicle related sectors.
Mass passenger vehicle manufacturing in comparison, however, has undergone a significant contraction. It is well documented in the Directions in Australia’s Automotive Industry 2017 report that Australia’s car and component manufacturing industry sector has been greatly affected by the closure of its car manufacturing plants, resulting in job losses in this sector. The report also mentions that there are still positive business conditions in Motor Vehicle Parts Manufacturing and Bus, Truck and Trailer Manufacturing. Much of this is due to expenditure by state governments (mainly Victoria and Queensland) on rail replacement buses and trams. Additionally, fire suppression systems need to be installed on buses, trams and trucks as a result of regulation.
The research overview The End of Car Manufacturing in Australia: What is the Role of Training? indicates that training of workers is a fundamental part of industry restructuring packages in light of closure of passenger vehicle manufacturing. This training:
- Needs to be tailored to individual needs
- Needs to be appropriately timed
- Take into account regional labour market needs.
The overview also points out that the training should focus on transferability of skills, support for developing foundation skills, and be age appropriate. The Transition of the Australian Car Manufacturing Sector - Outcomes and Best Practice: Summary Report finds that around 63% to 75% of workers undertook some form of formal training prior to closure, and many also accessed informal training offered by their employers including foundation skills, information sessions, digital literacy, financial literacy and resilience training.
The findings of the Australian Automotive Industry Report, which presents an analysis of the outcomes for the automotive supply chain, indicate that of those businesses that participated in the Automotive Transition Scheme, about 75% remain in business, albeit with reduced workforces. For example, the data suggests that the increased activity in ‘other automotive’ manufacturing has provided some motor vehicle automotive firms an avenue for diversification, particularly into ‘body and trailer’ manufacturing. There are also a number of automotive supply chain companies that have diversified into truck component manufacturing.