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1A U T O M O T I V E I N D U S T R I E S A S S O C I A T I O N O F C A N A D A

THE LABOUR MARKET WATCH: GAPS, CHALLENGES & OPPORTUNITIES IN THE AUTOMOTIVE AFTERMARKET INDUSTRY IN CANADA

Gaps, Challenges & Opportunities in the Automotive Aftermarket Industry in Canada

Labour Market Watch

Funded in part by the Government of Canada’s Sectoral Initiatives Program

Automotive Industries Association of Canada

180 Elgin St. Suite 1400Ottawa, ON K2P 2K3

A U T O M O T I V E I N D U S T R I E S A S S O C I A T I O N O F C A N A D A


About the Automotive Industries Association of Canada

The Automotive Industries Association (AIA) of Canada is the only national industry association that brings together the entire automotive aftermarket supply and service chain. Our membership extends to more than 4,000 member locations across Canada employing professionals dedicated to providing quality parts and products as well as vehicle service and repairs to the country’s fleet of almost 26 million vehicles. Our mission is to promote, educate and represent members in all areas that impact the growth and prosperity of the industry. We are the VOICE and the RESOURCE for the automotive aftermarket industry in Canada.

About DesRosiers Automotive Consultants

Founded in 1985, DesRosiers Automotive Consultants Inc. (DAC) is the only consulting and market research company in Canada that works exclusively in the automotive sector. Our business stretches across all aspects of the automotive industry from parts manufacturers to dealers.industry from parts manufacturers to dealers.

About Paystats Inc.Paystats is a boutique company with 25 years of combined leadership experience in compensation research and consulting engagements. Our agile and proactive approach to building and delivering compensation surveys enables you to meet your ever-changing compensation information needs effectively and efficiently. DisclaimerThe opinions and interpretations in this publication are those of the author and do not necessarily reflect those of the Government of Canada. Labour Market Watch: Gaps, Challenges & Opportunities in the Mechanical & Collision Sectors in CanadaCopyright © December 2018ISBN: 978-1-989168-11-0

Automotive Industries Association of Canada180 Elgin Street, Suite 1400Ottawa, Ontario K2P 2K3Ph: (800) 808-2920 | Fax: (613) 728-6021Email: [email protected]: www.aiacanada.com

About Us

A U T O M O T I V E I N D U S T R I E S A S S O C I A T I O N O F C A N A D A


Table of Contents

Executive Summary ...........................................................................................................1 Introduction........................................................................................................................3 Methodology ......................................................................................................................4 Labour Gap Analysis - 2017 to 2022..............................................................................5 Key Findings - National Level....................................................................................5 Key Findings - Regional Level...................................................................................10 Looking to the Future.......................................................................................................16 AutoConnex website................................................................................................16 Engage high school students...................................................................................17 Diversity in the aftermarket industry.........................................................................17 STEM skills for the industry.......................................................................................18 Compensation, HR practices and training.................................................................18 Image of the industry................................................................................................18 Conclusion.........................................................................................................................19 Appendices.......................................................................................................................20

1 A U T O M O T I V E I N D U S T R I E S A S S O C I A T I O N O F C A N A D A


Executive Summary

The research presented in this report is intended to identify the unique labour challenges affecting the automotive aftermarket sector today and in the future. It is based on a two-year research project called Aftermarket Labour Market Intelligence (ALMI) conducted by the Automotive Industries Association (AIA) of Canada with Desrosiers Automotive Consultants (DAC) and other research partners, which examined the labour market situation in Canada’s aftermarket sector. The study was undertaken in response to the considerable anecdotal evidence of labour shortages in the sector. The objectives of the research included assessing the current labour market, producing projections of labour supply and demand for the sector, and making recommendations for potential solutions to labour shortages.

The research findings are reflective of the mostly small to medium sized businessesthat operate in the automotive aftermarket industry in Canada. The sample size for the mechanical sector was 250 responses and the collision industry 156 responses. Job forecasting for the 15 occupations was conducted for a time period of 5 years - from 2017 to 2022. As more cars enter the automotive aftermarket during this time period, the demand for skilled and unskilled labour will also increase. However, the distribution of age and level of experience amongst people employed in this industry in 2017, indicate a gap between the projected increase in demand and the supply of qualified people required to meet it.

18.4 million light vehicles 6 years or older were on the road in Canada. This increase (19.5 percent in the preceding five years) is expected to continue into 2022 at an annual average growth rate of 2.3 percent. As the projected number of cars entering the aftermarket industry increases, so does the number of people who service them. In 2017, the total number of people working in 15 occupations in the aftermarket industry across Canada was 359,015. This number is expected to increase to 407,042 (13.4 percent) by 2022.

In addition to skill, experience plays an important role in the aftermarket industry. 57.0 percent of the people employed in the industry in 2017 had more than five years of experience, followed by 29.3 percent with one to five years, and 13.7 percent with less than one year. Age could be indicative of the level of skill and experience within this industry. A little under two thirds (64.9 percent) of Canada’s 2017 aftermarket labour pool was 30 years or older in 2017, while 35.2 percent was under 30 years.

While skill, experience and age statistics indicate a potential supply issue going forward, the large gap in the number of women versus men in the industry, could offer part of the solution. Even in the areas of estimating and service advising, where the presence of women is highest, Canada’s 2017 aftermarket industry workforce was significantly and predominantly male.

Similar to national findings, the projected number of occupations in the automotive aftermarket industry from 2017 to 2022 also increases in each province or region included in this survey (British Columbia 17.3 percent, Alberta 12.7 percent, Manitoba/Saskatchewan 11.3 percent, Ontario 15.4 percent, Quebec 11.4 percent, and Atlantic 7.7 percent).

Also similar to the national trend, across all regions surveyed, projected growth for skilled, experienced, and knowledgeable labour outranks growth for occupations where skilled and experienced labour is not a requirement.



Continued technological advances in the automotive industry offer great potential for the aftermarket industry. In addition to increased demand for skilled labour in the current market scenario, the industry will need a more and more specialized workforce to deal with such disruptors as hybrid, fuel cell light vehicles, electronic systems, networks, and cellular and digital technologies. This will require re-training programs for existing technicians in order to stay current with technological advancements, and making inclusion and diversity training a tactical component of apprenticeship programs for new technicians.

The pressure that increased demand exerts on supply often drives prices up. Aftermarket suppliers must maximize pricing potential in order to address recruitment, training, and compensation needs.

The aftermarket industry has great potential in the coming years and offers many exciting opportunities and challenges. Meeting the anticipated labour demands will greatly increase the ability to benefit from the growing sales opportunities and maximize revenue potential.



Introduction

The automotive aftermarket is a $21.6 billion dollar industry in Canada1, and is concerned with the manufacturing, remanufacturing, distribution, retailing, installation and repair, of vehicle parts, chemicals, equipment and accessories. The aftermarket employs nearly half of the occupations in the automotive industry, equal to approximately 400,000 people. These occupations make up the backbone of Canada’s economy and productivity, as aftermarket companies are for the most part small and medium enterprises located in both rural and urban areas across the country.

However, the aftermarket industry is facing sweeping changes as industry disruptors such as new vehicle technologies and new trends in mobility forces change throughout the automotive chain. Canada’s aftermarket sector faces significant labour challenges that put its viability and growth potential at risk. Until recently, there was no single resource for comprehensive information on the labour market that the industry could rely on. Nor was there any research to understand the extent of the labour market shortages along with a persistent lack of knowledge on the skills required to meet the growing changes in the industry as a result of technological innovation in automotive vehicles. In 2016, AIA Canada identified the need for labour market information to solve these common industry issues. This led to the creation of the Aftermarket Labour Market Intelligence (ALMI) project with funding from the Government of Canada’s Sectoral Initiatives Program.

The research presented in this report is intended to identify the unique labour challenges affecting the automotive aftermarket sector today and in the future. It is based on the two-year ALMI research project conducted by AIA Canada with Desrosiers Automotive Consultants (DAC) and other research partners, which examined the labour market situation in Canada’s aftermarket sector. The study was undertaken in response to the considerable amount of anecdotal evidence of labour shortages in the sector. The objectives of the research included assessing the current labour market, producing projections of labour supply and demand for the sector, and making recommendations for potential solutions to labour shortages.

To capture an accurate picture of the sector today and as it is likely to look in the future, DAC constructed an economic model that forecasts labour demand and supply by sector, by province, and by occupation. Employers, employees, and stakeholders in the sector were also surveyed and interviewed. The results of this research were validated through a series of five focus groups held in different regions across the country.

There are mainly three outcomes of the ALMI project: AutoConnex2 and two research reports. AutoConnex is a dynamic website that offers unprecedented access to functional and timely labour market information in the aftermarket industry in Canada for both the mechanical and collision sectors. This report is the final deliverable of the ALMI project. A preliminary report3 based on the same sample size and methodology looks at the status of the mechanical and collision sectors in terms of labour market information.

1 AIA Canada 2018 Outlook Study2 www.autoconnex.ca3 Labour Market Watch: Status of the Mechanical and Collision Sectors in Canada



Methodology

Occupations within Automotive Aftermarket *not exhaustive

MECHANICAL SECTOR COLLISION SECTOR

1. Automotive Service Technician (NOC 7321) 1. Paint Technician - includes Apprentice

(NOC 7322)

2. Store Manager - Parts Wholesaler (NOC 0621) 2. Body Repair Technician - includes

Apprentice (NOC 7322)

3. Service Advisor/Inside Sales (NOC 6552) 3. Estimator (NOC 7322)

4. Apprentice Service Technician (NOC 7321) 4. Detailer (NOC 6732)

5. Tire Technician (NOC 7535) 5. Customer Service Representative (NOC 6421)

6. Driver - Jobber Outlet (NOC 7514) 6. Manager/Assistant Manager

(NOC 0621)

7. Oil & Lube Technician (NOC 7535) 7. Automotive Service Technician - includes

Apprentice (NOC 7321)

8. Parts Counter Person - Jobber Outlet (NOC 1522)

In the first phase of research, DAC conducted informative interviews with industry employers, academia and government to determine the types of labour market information sources that are currently available and/or being used. A total of 17 in-person and telephone interviews were conducted across the country representing the mechanical and collision sectors, education representatives and government agencies/associations. Through this process, a detailed understanding of public information sources was established.

Four bilingual online surveys, targeting the two sectors, were carried out in the next phase of research. The major occupations for both sectors were identified based on the informative interviews. As a result, the online surveys collected data on a total of 13 occupations for the mechanical sector and 12 for the collision sector. However, due to insufficient data only 8 occupations in the mechanical sector and 7 in the collision industry could be used for the purpose of this report.

The sample size for the mechanical sector was 250 responses and 156 responses for the collision industry. Job forecasting for the 15 occupations was conducted for a time period of 5 years — from 2017 to 2022. The research findings are reflective of the mostly small to medium businesses that operate in the automotive aftermarket industry in Canada.



Labour Gap Analysis - 2017 to 2022

AIA Canada undertook surveys to gather data for the 15 selected occupations for the aftermarket industry in 2017 and projected growth/decline through to 2022. As more cars enter the light vehicle aftermarket during this time period, the demand for skilled and unskilled labour will also increase. However, the distribution of age and level of experience amongst people employed in this industry in 2017 indicate a gap between the projected increase in demand and the supply of qualified people required to meet it.

Key Findings - National Level

18.4 million light vehicles 6 years or older were on the road in Canada in 2017. This increase (19.5 percent in the preceding five years) is expected to continue into 2022 at an annual average growth rate of 2.3 percent4.

4 AIA Canada 2018 Outlook Study



As the projected number of aftermarket vehicles increases, so does the number of people that service them. In 2017, the total number of people working in 15 occupations in the light vehicle aftermarket across Canada was 359,015. This number is expected to increase to 407,042 (13.4 percent) by 20225.

Projected growth for skilled labour and labour requiring a high level of knowledge (Paint Technician and Apprentice, Body Repair Technician and Apprentice, Automotive Service Technician Apprentice, Automotive Service Technician – Collision, Automotive Service Technician, and Estimator) outranks growth for almost all occupations where skilled labour and knowledge are not essential requirements (Detailing Technician, Tire Technician, Service Advisor, Oil and Lube Technician, Manager/Assistant Manager, Customer Service Representative, Parts Counter Person, Store Manager – Parts Wholesaler, Driver).

5 Source, unless otherwise noted, is the 15 selected occupations survey from 2017.



In addition to skill, experience plays an important role in the aftermarket industry. 57.0 percent of the people employed in the light vehicle aftermarket in 2017 had more than five years of experience, followed by 29.3 percent with one to five years, and 13.7 percent with less than one year.



In terms of average years of experience per occupation in 2017, the top ten were Manager/Assistant Manager (18.4 years), Paint Technician (17.5 years), Body Repair Technician (15.8 years), Automotive Service Technician (15.5 years), Automotive Service Technician – Collision (15.4 years), Service Advisor (14.6 years), Store Manager – Parts Wholesaler (13.0 years), Parts Counter Person (12.1 years), Customer Service Representative (11.8 years), and Estimator (10.2 years).

Age could be indicative of the level of skill and experience within this industry. 64.9 percent of the aftermarket labour pool was 30 or older in 2017, while 35.2 percent was under 30. The question must be asked “are enough people entering this industry early enough to gain the training and experience required to replace the highly skilled and experienced people who will leave during the projected growth period and possible demands beyond that?”



While skill, experience and age statistics indicate a potential supply issue going forward, the large gap in the number of women versus men in the industry, could offer part of the solution. Even in the areas of estimating and service advising, where the presence of women is highest, the aftermarket workforce in Canada was significantly and predominantly male.



Key Findings - Regional Level

Similar to national findings, the projected number of employees in the automotive aftermarket from 2017 to 2022 also increases in each province or region included in this survey (British Columbia 17.3 percent, Alberta 12.7 percent, Manitoba/Saskatchewan 11.3 percent, Ontario 15.4 percent, Quebec 11.4 percent, and Atlantic 7.7 percent).

Also similar to the national trend, across all regions surveyed, projected growth for skilled, experienced, and knowledgeable labour outranks growth for occupations where skilled and experienced labour is not a requirement.

Projections show Paint Technician as the occupation with the largest increase from 2017 to 2022 for BC (29.4 percent), Quebec (28.2 percent), and Ontario (32.8 percent). In Manitoba/Saskatchewan, Alberta, and Atlantic, Paint Technician and Apprentice is tied for first place with Automotive Service Technician Apprentice, Body Repair Technician and Apprentice, and Estimator.



Similar to national findings, regionally there is a dramatic gap between the number of men in the industry versus the number of women. (See Appendix 1.) Attracting more women to a male-dominated aftermarket workforce offers a significant opportunity for fulfilling future demand for qualified people.



British Columbia

Overall, jobs are projected to increase 17.3 percent from 42,598 in 2017 to 49,988 in 2022. Paint Technician and Apprentice shows the most growth from 2017 to 2022 at 29.4 percent, followed by Automotive Service Technician Apprentice and Body Repair Technician and Apprentice at 20.8 percent each, and Automotive Service Technician and Automotive Service Technician – Collision at 19.0 percent each.

Projections for each occupation increase annually from 2017 to 2022, even if only marginally in some cases.

Average years of industry experience for the top 10 occupations in 2017 were Parts Counter Person (19.0 years), Manager/Assistant Manager (18.7 years), Paint Technician and Apprentice (17.4 years), Automotive Service Technician (16.7 years), Body Repair Technician and Apprentice and Customer Service Representative (15.7 years each), Automotive Service Technician – Collision (14.7 years), Service Advisor (14.1 years), Store Manager – Parts Wholesaler (13.5 years), Estimator (12.8 years), Oil and Lube Technician (11.0 years), and Automotive Service Technician Apprentice (8.3 years).

Age cohorts for all occupations in 2017 were 20-29 (33.0 percent), 40-49 (21.6 percent), 30-39 (20.6 percent), 50-59 (14.6 percent), 60+ (8.4 percent), and under 20 (1.7 percent).

Alberta

The total projected increase for all occupations is 12.7 percent from 2017 (48,027) to 2022 (54,144). Automotive Service Technician Apprentice, Body Repair Technician and Apprentice, Estimator, and Paint technician and Apprentice show the highest projected growth of 15.9 percent. Automotive Service Technician and Automotive Service Technician – Collision follow with projected increases of 14.2 percent each from 2017 to 2022.

Projections for all occupations increase each year.

Average years of industry experience for the top 10 occupations in 2017 were Manager/Assistant Manager (19.0 years), Automotive Service Technician (17.9 years), Service Advisor (16.7 years), Paint Technician and Apprentice (15.9 years), Body Repair Technician and Apprentice (15.7 years), Automotive Service Technician – Collision (14.7 years), Estimator (14.0 years), Oil and Lube Technician (9.2 years), Automotive Service Technician Apprentice (9.1 years), Store Manager – Parts Wholesaler (8.4 years), and Driver (7.5 years).

Age cohorts for all occupations in 2017 were 20-29 (32.6 percent), 40-49 (24.0 percent), 30-39 (19.2 percent), 50-59 (15.3 percent), under 20 (6.8 percent), and 60+ (2.1 percent).



Manitoba/Saskatchewan

The total overall projected growth for occupations in Man/Sask is 11.3 percent from 2017 (28,384) to 2022 (31,580), with Automotive Service Technician Apprentice, Body Repair Technician and Apprentice, Estimator, and Paint Technician and Apprentice showing the greatest projected increase of 14.4 percent each. Automotive Service Technician and Automotive Service Technician – Collision come in second at 12.7 percent each.

Manager/Assistant Manager is the one occupation showing no growth in 2018, holding steady at 345 jobs, then increasing 1.0 percent annually up to and including 2022.

Average years of industry experience for the top 10 occupations in 2017 were Paint Technician and Apprentice and Parts Counter Person (19.0 years each), Manager/Assistant Manager (17.4 years), Store Manager – Parts Wholesaler (15.8 years), Body Repair Technician and Apprentice (15.7 years), Automotive Service Technician – Collision and Customer Service Representative (15.2 years each), Automotive Service Technician (14.4 years), Estimator (14.2 years), and Service Advisor (14.0 years).

Age cohorts for all occupations are 20-29 (23.6 percent), 50-59 (22.4 percent), 30-39 (19.4 percent), under 20 (16.8 percent), 40-49 (15.1 percent), and 60+ (2.6 percent).

Ontario

Ontario’s overall projected growth rate for all occupations is 15.4 percent from 2017 (125,574) to 2022 (144,873). Paint Technician and Apprentice comes in first at 32.8 percent, despite a 1.0 percent drop in 2018. All other categories show steady increases each year. Automotive Service Technician and Automotive Service Technician – Collision place second at 12.7 percent each.

Average years of industry experience for the top 10 occupations in 2017 were Paint Technician (18.5 years), Manager/Assistant Manager (17.9 years), Automotive Service Technician (16.6 years), Store Manager – Parts Wholesaler (15.8 years), Automotive Service Technician – Collision (15.5 years), Body Repair Technician and Apprentice (15.0 years), Service Advisor (14.4 years), Driver (13.3 years), Customer Service Representative (11.2 years), and Parts Counter Person (9.9 years).




Quebec

Quebec’s overall occupation growth rate is 11.4 percent from 2017 (87,786) to 2022 (97,762).Paint Technician is the occupation with the largest increase at 28.2 percent, followed by Automotive Service Technician Apprentice and Body Repair Technician and Apprentice at 14.1 percent each.

Projections show Paint Technician and Apprentice dipping 1.0 percent (or by 96 jobs to 3,420) in 2018, then increasing each year to 4,506 jobs in 2022.

Driver growth projections are highest in 2019 at 6,437, then decrease by 1.0 percent each year to 6,432 in 2022, which is the same projection as 2018.

Average years of industry experience for the top 10 occupations in 2017 were Manager/Assistant Manager (19.0 years), Body Repair Technician and Apprentice (17.4 years), Paint Technician and Apprentice (17.1 years), Detailing Technician (15.2 years), Automotive Service Technician – Collision (14.9 years), Service Advisor (14.8 years), Automotive Service Technician Apprentice (14.6 years), Customer Service Representative (13.3 years), Parts Counter Person (13.2 years), and Automotive Service Technician (11.9 years).

Age cohorts for all occupations in 2017 were 20-29 (26.6 percent), 30-39 (25.2 percent), 40-49 (22.6 percent), 50-59 (16.0%), 60+ (4.9 percent), and under 20 (4.7 percent). Atlantic

Occupations in the Atlantic region are expected to increase by 7.7 overall from 26,647 in 2017 to 28,694 in 2022. The largest increase of 10.8 percent is projected for Automotive Service Technician Apprentice, Body Repair Technician, Estimator, and Paint Technician, with the second largest increase in Automotive Service Technician – Collision and Automotive Service Technician at 9.2 percent each.

Store Manager – Parts Wholesaler is projected to increase in 2018 and 2019, hold steady from 2019 to 2021 and increase by 1.0 percent to 1,330 in 2022.

Driver projections see the highest increase from 1,906 in 2017 to 1,965 in 2018, then decline each year to end at 1,930 in 2022, which is still 1.2 percent higher than 2017.

Store Manager – Parts Wholesaler is projected to increase 2.8 percent from 1,294 to 1,330 in 2022, with an increase of 1.0 percent in 2018 and 2019, no increase or decrease in 2020 or 2021, then a 1.0 percent increase in 2022.



While Body Repair Technician and Estimator will each see 10.8 percent increases from 2017 to 2022, in 2018 the number of jobs remain at 2017 levels — 352 and 674 respectively.

Average years of industry experience for the top 10 occupations in 2017 were Automotive Service Technician – Collision and Manager/Assistant Manager (19.0 years each), Automotive Service Technician (16.9 years), Parts Counter Person (15.8 years), Paint Technician and Apprentice (15.6 years), Body Repair Technician and Apprentice (14.1 years), Service Advisor (12.2 years), Estimator (11.0 years), Store Manager – Parts Wholesaler (8.5 years), and Customer Service Representative (6.2 years).




Looking to the Future

AIA Canada’s Outlook 20186 states, “the aftermarket will see some of its best years in the near future as the market for out-of-warranty repair and maintenance continues to grow.” This growth will increase demand in all occupations, but especially for skilled and experienced labour.

With 64.9 percent of the 2017 workforce 30 and over, and 57.0 percent possessing five years or more of experience, having enough skilled and experienced people in the workforce to meet the increased demand could pose a significant challenge.

If this labour resource issue is not addressed effectively, a gap in supply will hinder the industry’s ability to take advantage of the market growth.

Opportunities

To meet the increased demand in skilled and experienced labour and maximize sales opportunities and revenue potential, the automotive aftermarket industry should approach the labour market challenges in a strategic manner. Some opportunities to consider are discussed in this report.

1. AutoConnex website:

The AutoConnex website is the outcome of the ALMI project. It is a dynamic online tool that offers unprecedented access to functional and timely labour market information in the aftermarket industry in Canada for both the mechanical and collision sectors. With AutoConnex, stakeholders now have a more comprehensive understanding of the industry that can be used to make informed decisions when it comes to policy development and strategic hiring to name a few. Not only will the website provide pertinent information for industry stakeholders to make informed business decisions, but the tool will also create a bridge between employers, the close to 400,000 workers, post-secondary institutions, students, and job seekers. Those looking for a career in the aftermarket have the ability to view profiles of current industry professionals to get a better understanding of their options as well as compensation related to specific jobs.

The AutoConnex website can be accessed at www.autoconnex.ca

6 AIA Canada 2018 Outlook Study

http://www.autoconnex.ca



2. Engage high school students:

Encourage high school students to consider the light vehicle aftermarket service industry. Do high schools still support automotive shop programs across Canada? What further actions can be taken to attract more young people to this field? Is there a disconnect between industry needs, future realities and curriculum? According to the Ontario College of Trades Apprenticeship Training Standard, an automotive service technician is defined as “a person who,on motor vehicles and light trucks, inspects/diagnoses and troubleshoots/repairs/verifies repairs on:

• engine systems, electrical systems – starting and charging;• engine management systems; electrical systems – body;• fuel delivery systems;• transmission systems;• drive shafts, differentials, and drive axle assemblies;• suspension systems and frames; and• steering systems, braking systems, tires, wheels, rims & hubs, heating, ventilation and air-

conditioning systems, body and trim, exhaust, and intake and emission.”

Given the complexity of repairing today’s vehicle, will this training be enough for the future? Gassroot programs, introducing automotive shop programs at an earlier age, and bringing automotive shop programs back into all high school curriculums (i.e., not just vocational schools) could make a big difference. 3. Diversity in the aftermarket industry: The technological advancements happening in the aftermarket industry are paving the way for a demand for specialized skills, which is in turn causing labour shortages. Diversity in the workplace is an untapped resource that can playa vital role in the success of the industry. One of the potential solutions to labour challenges is to encourage women to consider the light vehicle aftermarket service industry as a lucrative and rewarding career choice.

The Government of Canada can work with industry associations to develop programs that empower women who are already a part of or areconsidering a career in the automotive aftermarket industry. They can also develop strategic partnerships with technical colleges and school guidance counsellors in order to attract more young women to the aftermarket sector. Aboriginals peoples and internationally-trained workers represent a potential pool of workers that the aftermarket industry can consider for labour market shortages in the future.



4. STEM skills for the industry: For Canada to be a global leader in clean and advanced technology markets, it needs a workforce with skills in science, technology, engineering, and mathematics (STEM). In the same vein, vehicle manufacturing is changing, and with it, the automotive aftermarket. Ride-sharing, alternative fuel engines and connected/autonomous vehicles could lead to a radical reshaping of the market. To care for the country’s future fleet of vehicles, automotive service technicians will require analytical, programming, coding and engineering skills – a marked difference from the skills traditionally associated with skilled trades. The Government of Canada can work with industry associations to support campaigns and programs that re-introduce the automotive skilled trades to Canadians by showcasing the industry’s changing skills needs. Funding research that aligns industry needs withcurriculum is also needed. 5. Compensation, HR practices and training: Businesses operating in the aftermarket sector need to offer competitive salaries, bonuses and benefits to attract and retain skilled, experienced, and motivated people to the light vehicle aftermarket service industry. They also need to ensure that they provide their technicians and workers with inclusive and safe work environments, training opportunities, well-designed and managed dispatch systems, reasonable schedule requirements, and stable income opportunities. Education about online resources for hiring, such as AutoConnex when used unanimously by the industry would noticeably increase connectivity between both employers and employees. Having both parties on the same page would significantly increase hiring efficiency, which in turn would help address some of these demand issues indicated by respondents. 6. Image of the industry: Most people have a stereotypical image of the aftermarket industry — a job in the automotive industry means boring hours on an assembly line or getting hands and clothes filthy under a car, and is no place for an ambitious person. For those working in the sector, the reality is different. Industry associations and businesses operating in the aftermarket need to take steps to change this image of the industry. Showcasing that the aftermarket is a viable career choice for youth, women and others interested in what this industry has to offer can be a significant endeavour to fill labour gaps.



Continued technological advances in the automotive industry offer great potential for the light vehicle aftermarket. In addition to increased demand for skilled labour in the current market scenario, the industry will need a more and more specialized workforce to deal with such disruptors as hybrid, fuel cell light vehicles, electronic systems, networks, and cellular and digital technologies.

This will require re-training programs for existing technicians in order to stay current with technological advancements, and making inclusion and diversity training a tactical component of apprenticeship programs for new technicians, particularly young girls, indigenous youth and other minorities.

The aftermarket industry has great potential in the coming years and offers many exciting opportunities and challenges. Meeting the anticipated labour demands will greatly increase the ability to benefit from the growing sales opportunities and maximize revenue potential.

Conclusion



Appendices

Appendix 1

Percentage of female workers in aftermarket occupations

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