The industry reported the highest reduction in full time employees in UK businesses following a bleak 2019 which saw global production dip by almost 5%, after 10 years of growth.
Disruption to supply chains, and ongoing shortage of semiconductors continues to impact vehicle production. Despite this, a survey by HSBC showed that 73% of vehicle manufacturers expects a net increase in the number of full-time employees by the end of this year (https://www.business.hsbc.com/en-gb/insights/growing-my-business/whos-hiring-and-why).
Increased demand for electric vehicles as pressure mounts to phase out fossil fuels, means manufacturers need to rethink skillsets and prioritise job transformation, since their design is focused on digitisation and user experience.
More employees with software design, development and cyber security skills are needed. This means competing with tech companies for that talent.
By 2030, up to 30% of a vehicle’s total costs are expected to be driven by software and electronics (https://www.business.hsbc.com/en-gb/insights/growing-my-business/whos-hiring-and-why), but only 9% of the respondents in HSBC’s survey say they prioritise recruiting for software roles. This talent shortfall could hamper the industry’s long-term recovery.
With increased competition for talent, we recommend offering attractive packages and continued support for your staff to make your business stand out from the rest.
Matthew Allen, Head of Commercial, PIB Employee Benefits comments: “The digital skills gap is not unique to the automotive industry. The rise of automation and new technologies is transforming the world of work, resulting in an urgent need for large-scale upskilling and reskilling.”
Please contact Matthew by email: Matt.Allen@pib-eb.com or tel: 0177 786 9900