Workforce Shortages Plague the Automotive Manufacturing

The automotive industry is one of the world's largest industries with massive production growth in the year 2025. After the COVID-19 pandemic, every industry faced huge losses and business instability. The automotive industry's biggest brands also struggled with workforce and manufacturing problems. As the automotive industry shifts toward advanced technology and adoption of (i) Electric vehicles even the skilled workforce is still lacking the ability to adopt new technologies.

It is revealed in the number of reports, that the Automotive Industry is projected to achieve a significant growth rate of 5.66%, with a market share of $6,678.28 billion by the end of 2032. The biggest automotive companies, Honda, Tesla, Ford, Toyota, BMW, and Mercedes are a few of the biggest names actively producing different Electric vehicles and equipped with the latest technologies to differentiate their offerings from other brands. These Automotive brands are in

Challenges the Automotive Industry faces:

Due to the outdated recruiting process, lack of unskilled workers, and advancement in technology, the automotive industry faces different challenges in case of hiring an unskilled workforce. This industry plays a vital role in a global economy and different sectors contribute billions of dollars worldwide. Several factors are causing workforce shortages in the automotive industry.

The Automotive industry is undergoing a high demand for skilled workers which able to work on new advanced vehicle technology, including self-driving electric cars, and ADAS features to meet the ongoing demand for electric vehicles worldwide. As per the survey conducted by PwC, approximately 94% of the Automotive industry CEO are concerned about the trained skilled workers to meet the ongoing industry demands.

Many consumers prefer their older vehicles over new advanced technology due to high interest rates, high maintenance costs, and rising prices in autonomous

vehicles and it has led many customers to choose aging vehicles. The average lifespans of these vehicles are 8-10 years which leads companies to hire workers to maintain these older vehicles.

By 2026, the automotive industry will hire over 100,000 workers to maintain aging vehicles.

Skilled automotive workers will be essential for repairing mechanical and electrical issues in older models.

Consumers face high maintenance costs and long wait times due to workforce shortages.

A growing demand for experts in advanced vehicle technologies, including:

The U.S. needs 28 million EV charging stations by 2030 to support 33 million EVs, requiring a specialized workforce in electronics.

The aging workforce is another challenge the automotive industry is facing even nowadays. According to Zippia.com, the average age of a skilled and experienced worker is around 40 years, which means they are near to retiring and will be leaving their positions with the skills and experience by the age of 62. On the other hand, the younger generation is not interested in pursuing their career in the automotive workforce, which raises another big challenge for automotive recruiters to find younger talent with skills.

Low Employee Retention Rates:

Employee retention challenges are common across all industries. Companies use different tactics to retain employees with their companies for long tenure.

The automotive industry is also facing similar challenges. The average growth in the labor force (people working/looking for jobs) in the USA is about 0.5 percent from the 2014-2024 period which showcases the smaller growth in the labor force.

As the world is moving toward innovative technology the demand for automotive engineering professionals is still rising. A study conducted by ‘’Korn Ferry” indicates the automotive industry requirements for engineers with an increasing demand of 10% by 2025, to meet the demand of automobile companies to run their manufacturing operations smoothly.

Effect of Automotive Workforce Shortage on Consumers

As the industry currently faces the challenges of workforce shortages, let's delve into the details of the effects of workforce shortages on the automotive sector.

The workforce shortage will directly result in longer wait times for consumers expecting vehicles with advanced ADAS features and electric batteries. As the production and manufacturing of advanced technology vehicles require skilled workers and a talented workforce, fewer workforce result in delayed deliveries of vehicles affecting the consumer experience with the company.

The automotive industry is keeping pace with features to distinguish itself from other industries. The shortage in the workforce leads companies to compromise on the accuracy of advanced features such as Advanced Driver Assistance Systems features. The industry needs younger talent to meet consumer demands including software updates, advanced calibrating sensors, and the same level of accuracy given in high-end models.

As the industry faces a rise in labor and production costs in 2024; if the workforce shortage remains this way by 2030, the US auto industry will fail to achieve its target of about 33 million electric vehicles on the road and the target of eco-friendly transport cannot be achieved. In this way, the customer will have to wait for a longer time to get the delivery of their emission-free car with them.

As the challenges of a labor shortage are hiked, customers may compromise on limited and relatively lower-quality customer service. The reduced workforce may not fulfill the same level of customer service for autonomous vehicles. Moreover, the customer may also face challenges with longer wait times and higher maintenance costs.