The UK automotive sector has long been hailed as a beacon of industrial success and technological innovation, with apprenticeships serving as a cornerstone of its thriving ecosystem. However, the onset of the COVID-19 pandemic dealt a severe blow to this foundation, leading to a significant decline in apprenticeship starts and leaving a staggering 18,000 apprenticeship positions lost in its wake, that on current trends, will take 16 years to recoup.
In 2021, automotive apprenticeship starts fell 55% compared to 2019
In 2019 the automotive industry saw approximately 14,000 apprenticeship starts. However, at the pandemic’s peak in 2021, this number plummeted by more than half to a mere 6,300, marking a concerning decline of 55%. This sharp decrease not only disrupted the sector's talent pipeline but also raises critical implications for its future sustainability and competitiveness.
Apprenticeship starts are still significantly below pre-Covid levels, remaining about a third lower. This makes it increasingly challenging and adding to the time to recover the initial shortfall in starts. This issue arises precisely when securing a robust pipeline of automotive talent is crucial. As job openings in the sector reach record levels—currently the highest of any industry—it's essential to ensure a steady influx of new talent into the workforce.
The repercussions of this apprenticeship shortfall are profound and far-reaching. Firstly, it risks exacerbating the existing skills gap within the industry. As older employees retire, the shortage of trained younger workers could hamper efficiency and innovation, undermining the sector's long-term viability.
Moreover, the potential migration of skilled workers to other industries or countries with more promising job opportunities threatens to further weaken the UK automotive sector. This, coupled with a slowed rate of innovation and delayed adoption of transformative technologies such as electric vehicles and autonomous driving, poses significant challenges to maintaining global competitiveness.
To address these pressing issues, a multi-faceted approach is imperative. Government support in the form of targeted grants and financial incentives can alleviate the burden on automotive companies, encouraging them to invest in apprenticeship schemes. Additionally, industry collaboration is vital in promoting the benefits of automotive careers and fostering a supportive ecosystem for talent development.
Flexibility in apprenticeship structures, including the integration of digital platforms, can enhance resilience against future disruptions. Furthermore, promoting higher-level apprenticeships and engaging the older workforce through mentorship programs can bridge immediate skills gaps and facilitate knowledge transfer. Promoting regional balance in apprenticeship opportunities across the UK is also essential to ensure talent cultivation is spread evenly.
By implementing these recommendations, the automotive sector can mitigate the impacts of the apprenticeship shortfall and lay a robust foundation for future growth and innovation.
