How is a global shift impacting demand for electric automotive engineering jobs
This blog looks at how a global shift in the electric vehicle market is impacting demand for electric automotive engineering jobs and skills
The electric automotive market continues to overcome hurdles and is seeing persistent global growth as more consumers opt for greener alternatives in order to tackle the climate crisis. But what does this rising demand mean for automotive engineering careers and are there enough skills in the market for employers to meet targets?
Car manufacturing data
Car manufacturing was one of several factors that enabled UK production levels to reach their highest point in over five months last November. Seven of the 14 sectors Lloyds Bank monitors saw a rise in activity in December, an increase from four in November. The automotive industry bounced back from contraction to grow at the fastest rate of any sector, however, that’s not to say all the news is positive, in the UK at least. According to reports from earlier this month, electric car sales in Britain have missed their 2023 target and may well do so again this year with purchases falling by 19% year-on-year already.
The motor industry has blamed what it calls an ‘unhelpful’ delay in the ban on the sale of traditional combustion engines which was announced in September and, since then, sales to private buyers have fallen. Much of the drop-off can be attributed to the challenging economic conditions, with consumers balking at electric vehicle prices, and a remarkably strong December 2022 for car sales which acted as an outlier for the wider trends. Mike Hawes from the Society of Motor Manufacturers and Traders (SMMT) commented, “Economic conditions have not helped and higher interest rates and inflation impact the financing of the cost of purchase.”
China rising
Despite figures falling in the UK, there is still a clear need for electric vehicles around the world with Tesla diverting shipments to other countries where demand is stronger. In a rising market, the firm, which only sells electric cars, saw its annual sales in the UK fall nearly 10%. Perhaps unsurprisingly, China is picking up much of the slack and we are seeing the beginnings of a global shift in the market. BYD, the country’s largest electric car manufacturer, has now overtaken Tesla to become global leader, and Shanghai Automotive’s MG brand is already out-selling Volkswagen and BMW in the UK.
According to AutoTrader’s ‘The Road to 2035’ report, Chinese brands are benefitting from their low-cost manufacturing which is being supported by the ZEV mandate, the government’s new laws that require all automotive firms to sell at least 22% of their overall car sales as electric vehicles or they will face major financial sanctions. It’s predicted that Chinese brands will swallow 16% of all UK electric car sales by 2030, by which time it is projected that 80% of all new car sales will be zero emission. Most of the traditional manufacturers have already begun to adapt. Nissan will begin making electric versions of its Qashqai and Juke models in Sunderland this year, suggesting that slumping sales will begin to rise once again.
The market is evolving and the launch of McLaren Applied, the specialist EV arm of the high-end vehicle manufacturer, highlights that more firms are developing products for enjoyment, rather than just day-to-day use. This move away from functionality towards high-end engineering is likely to encourage more consumers to move to the electric side of the market. It’s clear that demand for electric automotive expertise is only going in one direction; but the main factor that could hold growth back is the lack of available skills, not just in the UK and US, but globally.
Electric automotive engineering jobs
The Institute of Motor Industry (IMI) has updated its forecast when it expects a shortage of EV specialist technicians to affect the sector, moving it a year forward from its initial projection of 2028. The growth of the market is so strong that this comes even though 15% of all technicians in the UK are now qualified to work on electric vehicles. The industry anticipates that 90,000 professionals will be required by 2030; currently, there are around 33,000, highlighting that major improvements are needed.
For the already qualified specialists in the market, this growing demand is great news and suggests that their skills will be highly sought after in the coming years. However, employers need to do much more to increase the pipeline of talent that can work with electric vehicles. This means that a greater focus needs to be placed on promoting opportunities in the field, and training opportunities need to expand accordingly. These firms, and trade bodies like the IMI and SMMT, also need to do more to attract diverse talent to what has historically been a male-dominated field.
And it’s not just technicians that will be needed. Professionals with engineering expertise, particularly in the field of battery technology, will also be required, placing even greater stress on employers to find these skills.
The future of the automotive industry is going electric, that much is clear, despite localised blips in the UK market. Firms will be competing for the same talent as their competitors around the world as the global industry looks to ramp up to meet new production and emissions targets and employers will have to find ways to set themselves apart to attract the brightest and the best.
If you are looking for your next role in the electric automotive engineering space, or if your firm needs support identifying the skills to enable your business to grow, then get in touch with our specialist team.
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