The ongoing skills shortage in automotive is having severe impacts on workshop productivity with more than a of quarter of shops turning away new business or having to delay vehicle returns to customers.
But if this is only marginally improved from last year, the confidence measure is at a five year high and in other uplifts, one third of apprentices are now female.
The State of the Nation report is an annual insight into the industry from Australia’s largest automotive cooperative, Capricorn that represents 25,000 small business members nationwide.
The extensive survey found for the sixth year running that the critical skills shortage in the automotive sector was the top concern of small businesses in the auto sector.
53 per cent of respondents listed it as their top concern, with 38 per cent struggling to find qualified workers 10 per cent running with unfilled positions.
Collision repairers are also feeling the skills pinch most acutely, with 69 per cent paint and panel businesses listing it as their major concern.
Impacts
Some of the impacts identified in the survey include 28 per cnet of businesses saying the turnaround time for customers is longer, with 27 per cent saying they are knocking back business due to insufficient staff.
More than a quarter also responded that the shortage is also have a negative impact on their work/life balance and placer heavier workloads on existing staff.
In the issues facing business section, 47 per cent of the member surveyed said they struggle with maintaining a healthy work-life balance.
Advocacy at the top
Group Chief Executive of Capricorn Australia and New Zealand Brad Gannon, was part of a special envoy to present the findings with Rod Camm from the MTAA/MTAQ to government to stress the critical role automotive plays in the wider economy and the need for government support.
“Workshops have fought through COVID, supply chain challenges, implementing single touch payroll and are managing cost of living pressures from customers. They have faced considerable economic pressure and continue to do so but nothing has been as challenging as the skills shortage,” Gannon says.
“Nearly half of small businesses tell us they are facing pressure from customers about rising costs but are unable to change the way they work due to lack of qualified staff.
“We are one of the most innovative industries in the country, keeping the nation’s key economic sectors across mining, fleet, agriculture, freight and transport moving. The automotive sector is resilient and even with challenges plan for growth.
“So many Australian customers rely on their local workshop and the difficulties these small businesses face comes at the expense of their mental health and work life balance.”
Confidence building
But the wide-ranging report was not all bad news, with confidence in the industry continuing to grow reaching a five year high of 72 per cent with almost four in. five business planning to expand and grow in the next year.
The confidence is even higher among apprentices, 80 per cent of whom are confident in the future.
This bodes well as a longer term skill solution as almost half currently employ an apprentice and 38 per cent said they would do so in future.
Gannon says Capricorn has taken an active role in redefining and representing what a career in auto looks like and promoting this at career expos and other opportunities.
“Supporting workforce development, promoting trades in schools, and helping small businesses innovate is needed to make a real difference.”
“We have a brilliant industry partnership with a united group of leaders across the $68b automotive sector. Capricorn, together with the Motor Trade bodies, regularly hosts careers expos connecting industry directly with young people who may be assessing their career options.”
“Our businesses are proud to be part of the automotive sector. Together, we hope to show young people how exciting this industry is and consider it as a future career. But more needs to be done in promoting the industry, showcasing the technology and encouraging people to be a part of it.”
One of the industry wins reflected in the report, is the number of female apprentices has doubled in a year from 16 to 32 per cent.
“Our work in attracting women to the industry to fulfil this growth has also been met with good results, with the industry doubling the number of female apprentices in automotive trades roles.”
“However, we are concerned that there are apprentice positions across the sector, across the country, that still can’t be filled. This added to nearly 40 per cent of the industry struggling to find skilled staff shows just how widespread this challenge is.
EV ready
While the transition to an industry that is EV ready is gradual, Gannon says thigh tech future is attractive to young people.
“There is anecdotal evidence that the move towards technology first vehicles is enticing young people into an automotive career. We need to be capitalising on this and highlighting future opportunities. ”
The survey reports that two thirds of workshops are already servicing electric vehicles, mostly hybrids while the average number of electric vehicles serviced per month just under five vehicles.
“Our report demonstrated that only 16 per cent of businesses feel prepared for an increase in servicing electric vehicles. We encourage regulators and policymakers to read the data, recognise the commitment of the industry in upskilling, but also recognise that transition needs to be done in consultation.”
The Capricorn report is heavily focussed on small business with an average a $1.2 mil turnover, with 97 per cent employing less than 19 staff.
The full Capricorn 2025 State of the Nation report can be accessed here:
Other insights
Challenges Faced by Apprentices
- 37% of apprentices cite low pay rates as a significant issue.
- 16% are concerned about adapting to new technologies like electric vehicles (EVs).
- 11% struggle with finding qualified staff and maintaining a healthy work-life balance.
- Limited exposure to modern vehicle systems highlights the need for updated training.
Emerging Vehicle Technologies Impact
- 66% of workshop owners currently service EVs, with expectations for hybrids to account for 31% of total workload in the next decade.
- The average number of EVs serviced per month has increased from 2.6 in 2021 to 4.9 in 2025.
- Only 16% of business owners feel prepared for an increase in battery electric vehicles (BEVs), indicating a need for better training and resources.
Women’s Growing Role in Automotive
- Women make up 22% of the total workforce in the automotive sector.
- Female representation in trade roles, such as qualified mechanics, has risen from 11% to 16%.
- 52% of businesses now employ female estimators, up from 21% in 2024.
- 94% of businesses report having at least one woman in administrative roles.