Chair’s Report

MTA CHAIR, FRANK AGOSTINO

As we look ahead to a new year the economic outlook for 2023 remains equally uncertain. Inflationary pressures have hit businesses and customers expect the same high level of service that you provide despite these evolving impacts on your bottom line. Add skill shortages and rising energy costs to this and businesses are presented with challenges on multiple fronts. From the MTA’s perspective this means members require the latest advice and advocacy to ensure they remain robust and viable.

Retail across 2022 recorded similar new and used vehicle sales, indicating that consumer demand remains strong. This also extended to agricultural machinery. Global supply chains are hoped to ease in the coming months as China re-opens following its pursuit of a COVID suppression strategy which choked international markets. This presents an opportunity for local sales to continue resurging, in addition to parts becoming more readily available.

At the other end of the industry, skill shortages are persisting and service and repair businesses continue to have backlogs simply due to not having enough employees to complete work. It is not uncommon for business owners to be on the tools themselves, with less time to actually manage workplaces and associated red tape. This is particularly the case for regional businesses and another ongoing focus of the MTA this year will be skilled migration where positions cannot be filled locally to assist alleviate labour shortages. Equally, we need to have the right initiatives in place to attract people to an apprenticeship.

Like all sectors of our economy, skill shortages remain a significant issue for automotive. We must demonstrate to young people, as well as their parents, schools and influencers that there is a bright future in completing an apprenticeship. Our industry is full of opportunity but unless we convince young people of it they will not be rewarded with the exciting and rewarding career which we know it to be.

The MTA is committed to addressing this. Our own words must be matched by actions and this is why the association has invested in an Automotive Careers Mentor, supported in partnership with the State Government.

This important role will assist apprentices in the crucial first and second years which we know has the highest proportion of drop outs. This also complements further initiatives such as our school pathways program where we actively engage with more than 65 South Australian campuses, in addition to many other MTA programs.

On an operational level Darrell Jacobs has succeeded Paul Unerkov in the role of MTA SA/NT CEO, following unanimous endorsement by the Board. I have every confidence that he will rise to the occasion and he has already hit the ground running. Darrell has two decades of automotive experience and will provide the MTA with a strong knowledge base and connection to industry.

As part of this renewal, we have also turned our attention to implementing our new three-year strategic plan. We want the MTA to be recognised as the automotive trainer and apprentice employer of choice by the industry, government and public alike. As part of our longterm planning, the MTA must also stay at the forefront of automotive innovation. This includes electric vehicles where we eagerly await the Federal Government developing the inaugural National Electric Vehicle Strategy.

2023 will be another big year for our industry and as the only SA employer-based organisation dedicated to automotive, the MTA will continue delivering the same level of service members have come to expect.