Workforce challenges growing global concern

Global Abb Automotive Manufacturing Outlook Survey Reveals

RISING LABOUR COSTS AND SHORTAGES ARE SIGNIFICANT CHALLENGES IN THE AUTOMOTIVE INDUSTRY

Shortages of specific skills and requirements for new knowledge highlighted by more than half of respondents’ education and upskilling at all levels – from early years to current workers – are key to addressing the industry challenges.

Rising labour costs and mounting workforce shortages are a growing global concern for automotive manufacturing, according to a new survey commissioned by ABB Robotics produced in partnership Automotive Manufacturing Solutions. Nearly a third (31%) of all respondents listed labour shortages among their top three challenges, while 35% ranked labour as their most concerning area when it came to rising costs.

Crucially, the survey revealed that these concerns are not confined to general shortages alone. More than half (56%) identified specific skills shortages when asked to select the challenges they face on labour and skills, followed by 48% who expressed the view that new skills were required by a fast-changing automotive landscape, suggesting more needed to be done to attract people to the industry.

The survey also highlighted regional variations throughout the industry, with general labour shortages a greater concern in North America (56%), compared to Asia (37%) and Europe (34%). Conversely, new skill sets are in much greater demand in Asia (57%), in contrast to just 37% in North America and 48% in Europe. OEMs and Tier 2 suppliers also ranked this concern highly.

The ABB survey includes close to 600 global industry experts, from vehicle manufacturers, and suppliers at all levels of management, engineering and other key professionals throughout the automotive world.