Automotive

Automotive

Explore Automotive Qualification Pathways document today and take the first step towards realising your potential.

Detailed pathways for Automotive

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Who's this plan for?
Heavy Automotive Engineering
Light Automotive Engineering
Automotive Parts and Wholesaling
Collision Repair
Forklift (Powered Industrial Lift Trucks)

The automotive engineering sector employed 45,384 in 2023, with a highly diverse workforce. Forecasting shows that the sector will need to fill over 15,100 job openings over the next five years to 2029, an average of 3,000 per year, to meet the industries' need to grow and ensure continued productivity (Infometrics 2024). Our industries face global talent competition, particularly in areas of technical skill.

Overview

What matters to industry matters to us

Hanga-Aro-Rau engages with the sector through our Industry Stakeholder Group (ISG) and National Industry Advisory Group (NIAG) composed of industry leaders from around the country. This industry connection is supported by regular site visits and engagements with sector associations, business owners, and key stakeholders annually. We have heard what issues the automotive engineering sector is facing specifically, and below, we have outlined our planned actions to address each priority.  

Strong Workforce Pipeline
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In addition to the Cross-Sector Action Plan, which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to attracting and retaining talent in the automotive engineering sector, including: 

  1. Low retention of pre-trade course graduates: Some young learners are not continuing into the industry despite completing pre-trade courses. This indicates a disconnect between the skills gained in these courses and the demands of the industry, highlighting the need for better alignment between training programs and industry needs.
  1. Skills gap between experienced technicians and new entrants: There is a growing gap between skilled diagnostic technicians and new entrants to the industry.
  1. Cost of training experienced technicians: Employers face high costs when experienced technicians are taken away from their regular duties to teach apprentices. This can strain resources and affect the profitability of businesses, especially for smaller operations with limited staffing.
  1. Need for financial support and Government funding: The industry requires financial support and government funding to sustain training and upskilling initiatives. Without adequate resources, employers may struggle to invest in training programs and provide ongoing development opportunities for technicians.

What action is Hanga-Aro-Rau taking?

In addition to the actions outlined in our Cross-Sector Action Plan, specific actions aligned with the automotive engineering sector to support a strong workforce pipeline are:

Advocacy for training opportunities: We have collaborated with providers and industry stakeholders to promote and advocate for 'Centre of Excellence' venues for specialised training. This includes advocating for both web-based and in-person training within work time to improve accessibility.

Advocating for continued apprenticeship funding: Advocating for continued apprenticeship funding and addressing financial constraints businesses face. This includes supporting businesses where the cost of highly qualified workers teaching instead of working may be a significant burden. 

Support for Pacific learners: Scoping tangible actions in Lumana’i o Tangata Moana action plan, there is a focus to support Pacific learners and workers through talent attraction, retention and engagement with a particular target to increase community engagement across regional Pacific communities. This action plan is a guiding tool for industry to identify and develop education and training solutions to prepare Pacific peoples for emerging opportunities. It also presents confident approaches to build Pacific cultural capabilities to support the Pacific workforce.

Qualifications and Recognition Challenges
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In addition to the Cross Sector Action Plan which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to qualifications and recognition in the Automotive Engineering sector, these include:

  1. Inconsistencies in Training Delivery: The diversity of learning modes and models, including work-based learning, polytechnic programs, school gateway initiatives, and others, has resulted in inconsistencies in training delivery. Different providers may offer varying approaches, pricing structures, and outcomes, leading to a lack of standardisation within the sector.
  1. Quality Assurance and Standards: With multiple pathways for gaining Automotive Engineering skills, ensuring consistent quality assurance and adherence to industry standards can be challenging. This inconsistency in training delivery may impact the overall competency and proficiency of graduates entering the workforce.
  1. Misalignment with Industry Needs: Some training programs may not adequately align with the evolving needs of the Automotive Engineering industry. This can result in graduates possessing skills that may not be directly applicable or relevant to the current demands of the sector, leading to potential mismatches between training outcomes and industry requirements.
  1. Lack of Practical Experience: Despite the diversity of learning modes, some training programs may not prioritise practical hands-on experience, which is crucial in the Automotive Engineering field. This could result in graduates lacking the necessary practical skills and experience required for real-world employment scenarios.

What action is Hanga-Aro-Rau taking?

In addition to the Cross Sector Action Plan which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to qualifications and recognition in the Automotive Engineering sector, these include:

  1. Promotion of 'Centre of Excellence' Venues: Collaborating with providers and industry stakeholders to advocate for the establishment of 'Centre of Excellence' venues for specialised training. These centres will offer high-quality training facilities and resources, ensuring that learners receive comprehensive and effective education in Automotive Engineering.

  1. Facilitation of Web-based and In-person Training: Working with providers and employers to promote both web-based and in-person training opportunities within work time. This approach enhances accessibility and flexibility for learners, allowing them to access training resources conveniently while balancing work commitments.

  1. Regional-specific Initiatives: Developing regional-specific initiatives tailored to the unique needs and challenges of different areas within New Zealand. This may involve collaborating with local employers, educational institutions, and community organisations to design training programs and resources that address regional workforce demands and opportunities.

  1. Development of Micro-Credentials: Working with the Automotive Engineering sector to develop focused and adaptable micro-credentials that align with technological advancements. These credentials may include training for advanced driver-assistance programs, biofuels, battery, and hydrogen power.

Hanga-Aro-Rau is undertaking a number of qualification reviews for the Automotive Engineering sector – you can find more information around these and how to get involved here. And follow the links to find out more about interim rulings, or quals reviews coming up from Hanga-Aro-Rau

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Size of the sector

GDP: In 2023, the Automotive sector contributed $4.1 billion to the national GDP, which is 1.1% of the total economy.
No.of businesses: 10,926 - Auto Eng 55%, Collision Repair 23%, Auto Parts and Wholesaling 19% (2023).
Māori-owned businesses (2020) The sector had 460, or 7% (in 1/3 where ownership data was available).

Employment and people

Employment: Growing and is forecast* to reach 50,000 by 2029, an increase of just over 4,000 from 2023 (Infometrics 2023).
Number of Māori employed.
Ethnicity data for sector
Age breakdown:15 to 24-year-olds dropped from 15% (2015) to 13% (2020). 55+ grew from 22% (2015) to 24% (2020).
Gender split: The workforce remains mostly male with 20% female in 2020, a similar level since 2015.

Trends and Forecasts

New entrants: From 6,700 to 8,700 between 2015 and 2021. Most from other industries, showing opportunity for attraction.
Retention of new entrants: The proportion of each age group of 2015 new entrants who remained after 5 years is as follows:
Overall retention: 42% of the 2015 workforce remained after 5 years, 30% remained in the same job after 5 years.
Forecast: 15,100 openings over the next 5 years (average 3000 p/a) 24% due to growth and 76% due to workers leaving/retiring.

Download Automotive Pathways

Explore Automotive Qualification Pathways document today and take the first step towards realising your potential.

Detailed pathways for Automotive

View the flexible options to fit learning preferences
Download Pathway

We want to hear from you

These Workforce Development Plans are our functions in action and remain agile to changing Industry and VET sector needs. We encourage and seek continual feedback, so if you would like to contact our team, please email info@hangaarorau.nz