Why Is There a Technician Shortage?

In this video, I show the data behind why there are fewer technicians available in New Zealand to fill vacancies than ever before. The dynamics are complex, but with an understanding of the reasons, garage owners will have a better chance of dealing with the situation.

A description of what’s explained in the video follows it.

New Zealand's automotive industry is grappling with a significant shortage of technicians, a problem that is not unique to the country but is nonetheless pressing. The shortage is largely due to a combination of factors, including increased competition, changing market dynamics, and an aging workforce.

Over the past decade, the number of automotive repair and maintenance enterprises has grown by 15%, leading to fierce competition for skilled technicians. This is particularly challenging for smaller centers like Gisborne or the West Coast, where attracting new staff is already difficult.

The market dynamics are also shifting, with the number of cars requiring repair decreasing as car and motorcycle registrations decline. This is likely to be exacerbated by the ending of EV and hybrid incentives. Despite this, the market share of EVs and hybrids has increased from 4% to 14% over the past two years, indicating a growing demand for technicians trained in these technologies. However, the number of new technicians entering the market is not keeping pace with demand, as evidenced by the inclusion of diesel mechanics, motor mechanics, and motorcycle mechanics on the immigration New Zealand website's green list of professions where there aren't enough New Zealanders to meet demand.

The aging workforce is another factor contributing to the shortage. Data from 2013 shows that 80% of all technicians were over the age of 40, making them difficult to uproot from their current jobs and likely to expect higher salaries. Furthermore, the industry is starting to see some regulation creep in. From 2027, technicians regassing air conditioning on cars will need to be certified, which will increase the demand for technicians with that qualification. Although New Zealand hasn't started regulating work on EV high voltage systems, it's likely that some sort of regulation will come in the future.

Given these factors, employers have little influence over the technician shortage. The only viable solution is to look after the technicians they already have and try new ways to attract new ones. This may involve offering competitive salaries, providing opportunities for upskilling, and creating a positive work environment. Despite the challenges, understanding the reasons behind the shortage can help garage owners and managers navigate this issue more effectively.