Biggest Challenges Facing the Automotive Industry main image

Biggest Challenges Facing the Automotive Industry

Back in 2020, 44% of Members told us the lack of qualified staff was a challenge facing the industry as a whole. It was second on the list of challenges, behind changing technology (49%).

By last year, that had grown to half of all Members. This year, it tops the list of challenges at 61%.

Attracting young people into automotive careers, which last year 36% of Members said was a challenge for the industry, is now viewed as a major issue by 45% of Members.

In the four years we have asked Members this question, concern about most of the challenging factors has remained relatively constant, despite the attention they get in the industry.

For example, the impacts of the following have not changed a great deal:

Talent-related factors are the notable exception, and it’s in the past year we’ve seen the biggest rise in concern.

What's the good news?

  • We are feeling more trusted. In 2020, 19% of Members said a lack of trust from customers was a challenge. Last year, that had dropped to 14%. This year it’s 9%.
  • Changing technology has dropped from the top concern in 2019 (at 49%) to sixth on the list this year at 27%.

Larger businesses are more likely to suggest staff recruitment and retention issues are a challenge for the industry as a whole - and by a significant margin.

What's the good news?

  • No matter the size of the business, few Members believe price comparison websites are a challenge for the industry.
  • Although we’re struggling to attract apprentices, Members don’t generally think a lack of structured training or accreditation is a problem for the industry.

The part of the industry Members are in has a big effect on what they perceive the industry’s challenges to be, including how big a concern they believe the skills shortage is.

What's the good news?

  • Mobile mechanic (24%) and commercial truck (34%) Members are the least likely to think attracting young people to the industry is a major challenge.
  • Tyre and suspension shops and mobile mechanics are far less worried about lower margins this year than last year (respectively, 47% to 36%, and 29% to 19%).