FOR IMMEDIATE RELEASE
CAR Research Shows Automotive Employers Anticipate Near-Term Skills Gaps as Industry Transformation Accelerates
Automotive Workforce Needs Assessment finds 29% of employers expect significant or extensive skills gaps within 1-3 years, with downstream automotive businesses reporting the greatest pressure.
ANN ARBOR, MI – Michigan’s automotive workforce challenges are closing in fast. New research from the Center for Automotive Research (CAR) finds that employers across Michigan’s extended automotive supply chain are preparing for significant workforce shifts tied to electrification, automation, digitalization, policy changes, global competition, and changing production needs.
CAR’s Michigan Automotive Workforce Needs Assessment, conducted by the CAR research team, gathered confidential survey and interview feedback from 67 businesses across 20 Michigan counties. The assessment spans upstream, core automotive, and downstream sectors, including materials and processing, equipment manufacturing, parts and machining, component systems, engineering and design, vehicle assembly, parts and product sales, dealers, maintenance and repair, and logistics.
A key takeaway: 29% of employers surveyed expect significant or extensive skills gaps in the next 1-3 years. Future workforce pressures are expected to intensify across Michigan’s automotive sector, with downstream businesses – including vehicle and parts sales, repair and maintenance, and logistics – anticipating the greatest skills gaps over the next three years.
“Michigan’s automotive leadership depends on the ability to anticipate workforce needs before they become constraints,” said Elizabeth Krear, President & CEO of CAR. “This assessment gives employers, educators, workforce partners, and policymakers a clearer view of where skills gaps are emerging and where coordinated action can strengthen Michigan’s competitiveness.”
Key Findings from CAR’s Automotive Workforce Needs Assessment:
- Skills gaps are expected to accelerate. Across all businesses surveyed, 43% of employers expect moderate skills gaps in the next 1-3 years, while 29% expect significant or extensive gaps.
- Downstream businesses face the greatest projected pressure. Employers in downstream sectors reported the highest expectations for future skills gaps, including the largest share expecting extensive gaps.
- Digital and soft skills are emerging as critical needs. Employers identified digital skills – including data management, AI, and software development – along with soft skills such as communication, professionalism, agility, and problem solving as key current and future gaps.
- Automotive talent needs are becoming more interdisciplinary. Employers reported demand for a diverse skillset including advanced software and programming skills, automation and robotics operation, testing and calibration, vehicle diagnostics and repair, prototyping and CAD, and mechanical assembly.
- Training strategies remain highly employer-driven. Businesses most frequently rely on on-the-job training, internal training, four-year degrees, apprenticeships, community colleges, and external training programs to meet changing workforce needs.
- Policy and education alignment matter. Employers emphasized the need for stronger industry-education alignment, support for technical programs and apprenticeships, training resources for skilled trades and emerging vehicle technologies, and strategies to attract and retain talent in Michigan.
The findings underscore that the automotive workforce challenge is not limited to one technology, one occupation, or one segment of the industry. Employers are navigating a mix of economic pressures, federal policy changes, global competition, the EV transition, automation, AI, and changing customer and production demands. CAR’s research provides insights from employers to inform Michigan’s Community & Worker Economic Transition office and their partners to enable employers, educators, and policymakers to prepare the workforce for current operations and future mobility growth.
CAR’s assessment was conducted as part of the broader Michigan Automotive Workforce Hub effort, with support from Michigan’s Department of Labor and Economic Opportunity. CAR also recognizes the W.E. Upjohn Institute for Employment Research as a partner in the broader workforce research landscape. Separate reports from partner organizations provide additional context on Michigan’s automotive workforce transition and will be linked alongside CAR’s report.
To view the complete findings, methodology, and implications for Michigan’s automotive supply chain, please visit the CAR publications page (https://www.cargroup.org/publication/workforce-needs-assessment-partf/).
Center for Automotive Research
The Center for Automotive Research (CAR) is an independent, non-profit organization conducting industry-driven research and analysis. Focusing on critical areas like Technology & Manufacturing, Energy & Sustainability, and Labor, Economics, and Policy. CAR has been a trusted resource for the automotive industry for over twenty years. www.cargroup.org