Auto Service World
News   September 16, 2020   by Allan Janssen

Tech shortage continues to worsen: new study


The U.S. will be short approximately 642,000 automotive, diesel, and collision technicians by 2024 if current trends hold, according to a new study by TechForce Foundation.

The Phoenix, Ariz.-based non-profit group has just released its 2020 Transportation Technician Supply & Demand Report, with its conclusion that the transportation technician shortage continues to worsen.

The 2020 Technician Supply & Demand Report supplements the Foundation’s previous reports, adjusting prior projections to reflect research from the National Center for Education Statistics and TechForce’s own analysis of Bureau of Labor Statistics data. Citing both increasing demand for professional techs and a declining supply of new techs entering the industry, the update concludes that the technician shortage is increasing in severity despite a slight uptick in new post-secondary degrees and certificates for future diesel technicians.

“Although demand is strong, with 642,000 auto/diesel/collision techs needed between 2020 and 2024, the shortage continues to worsen,” said Jennifer Maher, TechForce CEO. “The good news is these careers have been deemed essential by the government, and the transportation industry is organizing to do something about the shortage. TechForce’s campaigns are leveraging the industry’s collective voice to inspire the next generation of technicians and address the root causes of the shortage.”

Recent surveys show an increased interest in transportation technology work, both among younger students and career changers whose jobs may have been lost or furloughed because of the pandemic. Surveys of high school students show that more than half are open to something other than a four-year degree.

The report concludes that for both the near- and long-term, the only sustainable solution is to:

  • Focus as an industry on increasing awareness of the career opportunities that exist for new entrant transportation technicians
  • Turn that awareness into interest
  • Turn that interest into enrolments in our high school and postsecondary training programs
  • Engage with schools to bring their students into mentorships and apprenticeships to bridge the students’ gap between education and industry
  • Turn those mentorships and apprenticeships into employees
  • Retain those employees through competitive pay, good benefits and a great company culture focused on caring for its employees

According to TechForce Director of National Initiatives Greg Settle, who authored the report, “Our projections do not reflect potential impact from the COVID-19 pandemic. However, we are seeing indications of increased interest in technical program enrollments. With our next report at year-end, we expect to be able to provide further insight into COVID-19 related trends.”

“Despite record rates of unemployment, there continues to be strong demand for our graduates,” says Jerome Grant, CEO of Universal Technical Institute. “Employers need skilled technicians to fill essential jobs and, as many in our nation look for new paths to prosperity, we’re seeing growing interest in our programs and in technical careers.”

You can download the 2020 Technician Supply & Demand Report HERE.

TechForce Foundation is a nonprofit with the mission to champion students to and through their technical education and into careers as professional transportation technicians. TechForce distributes more than $1.5 million in scholarships and grants annually, thanks to its generous corporate sponsors and donors. It also spearheads a workforce development initiative to help encourage and support more young people to pursue the vehicle technician profession.

www.techforce.org

 

 


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13 Comments » for Tech shortage continues to worsen: new study
  1. Philip Singer says:

    Have you or are there any figures for Canada with respect to the shortage of technicians?

    • Allan Janssen Allan Janssen says:

      Hi Phil. I’m sorry, but I don’t know of any studies that have looked at that. I would like to know that number too, and I have put out requests to a number of groups. So far, I haven’t found the answer. I’ll keep looking.
      -allan

  2. Richard Crowley says:

    I am a retired Ford technician. specializing in drivability and electrical issues. I see the data for shortage but my real concern is lack of pay for needed skills and tool requirements and continued schooling for advanced technology in today’s cars. I don’t see much of a change coming.

    • JOHN BRENNAN says:

      They are blowing them out far faster than they will ever be able to create new ones.”A nationwide survey by Carlisle & Co. recently found that technicians are miserable — so miserable that almost a quarter of them left their dealerships last year. Another 25 percent left the industry altogether. Unstable pay and feeling undervalued were major reasons. MIT labor economist Tom Kochan says there’s one way to change that.”

    • JOHN BRENNAN says:

      Ford just robbed 40% from technicians of directed repairs because they invested their own hard earned money into expensive power tools then can’t figure out why they are having technician shortages.

  3. JOHN BRENNAN says:

    A technicians current market value is 61.33-71% of their stated retail shop rates.NADA has been criminally colluding to force their gross margins on service labor continually higher and higher for years.Nobody more than doubles the cost of anything especially labor.We have scumbag car dealers charging $165 an hour now trying to pay some hapless idiot $13 an hour on a flat-rate or 1,269% over cost.That’s worse than pharmaceuticals.That is not a business,it’s scam!”A nationwide survey by Carlisle & Co. recently found that technicians are miserable — so miserable that almost a quarter of them left their dealerships last year. Another 25 percent left the industry altogether. Unstable pay and feeling undervalued were major reasons. MIT labor economist Tom Kochan says there’s one way to change that.”

  4. JOHN BRENNAN says:

    This is the current average gross profit margin for any skilled trade or professional service(On the trailing twelve months basis gross margin in 4 Q 2019 grew to 38.67 %.)More specific to the category(Eqmm EquipmentOperators,MasterMechanics 49.05 392.40 9.2 58.1 28.50 77.55 620.40) This means my value as a technician is 61.33-71% of your stated retail shop rate.A competitive 40% margin is 80% over cost and 87% gross margin is 751% over and nearly 10 times what is normally acceptable.These dealers are criminally colluding to cap the technicians pay at 25% or less.Technicians have a right to their market values and they should only be applying a competitive margin but they force the shop rates as high as they think the marklet will bear then force the technicians pay down to increase these margins.That is organized crime and not capitalism!

  5. JOHN BRENNAN says:

    7.1 million scientist and engineers in this penal colony of a country.THERE IS NO SHORTAGE OF TECHNICIANS there is just a massive oversupply of scumbag salesman trying to collect 90% margins on service labor.

  6. JOHN BRENNAN says:

    There have been shortages of technicians willing to do free warranty work and recalls since the dawn of time.

  7. JOHN BRENNAN says:

    The BLS is actually predicting a decline in employment for technicians and industry experts are predicting that ride sharing and self driving cars are going to cut new car sales in half in the next few years.Crying shortages constantly is just another criminal wage fixing technique.There are only shortages of people to work free and cheap.”Employment of automotive service technicians and mechanics is projected to decline 4 percent from 2019 to 2029.

  8. JOHN BRENNAN says:

    You are probably going to need a good calculator for this,but what is 99% of nothing?

  9. JOHN BRENNAN says:

    I was making more money back when shop rates were only $60 an hour,now they are $160.You really don’t need an MIT labor economists to figure that shit out.

  10. JOHN BRENNAN says:

    This is a 30 city average for skilled trades,45% margin or 90% over is very high.We have these new car dealers and rathole chop shops trying for 90% GPM’s and 1,200% over now. https://www.rsmeansonline.com/References/LABORRATE/2-Year%202013%20Labor%20Rates/Repair%20Remodeling%20Labor%20Rates.PDF

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