MTA NSW Warns That Australia’s Automotive Skills Shortage Is Now a National Productivity Crisis

The Motor Traders’ Association of NSW (MTA NSW) has issued an urgent warning that Australia’s long-running shortage of qualified automotive technicians is now at crisis levels - threatening not just the future of the automotive sector, but national productivity more broadly.

The latest Occupation Shortage List released by Jobs and Skills Australia confirms what the industry has been warning for years - Australia’s automotive skills shortage has deepened, with critical roles in shortage across every state and territory.

The national data shows widespread shortages across the automotive workforce, including light and heavy vehicle technicians, auto electricians, panel beaters, and spray painters, highlighting a sector under sustained pressure.

With Australia’s vehicle fleet now exceeding 22 million vehicles travelling more than 260 billion kilometres annually, and the automotive industry contributes over $40 billion to Australia’s GDP each year, MTA NSW CEO Mr Stavros Yallouridis said the skills pipeline is failing to keep up with the nation’s growing demand for maintenance and repair.

“This shortage isn’t new, but it’s getting worse, and the consequences are now being felt across the economy,” Mr Yallouridis said.

“We have been warning for years that the lack of qualified technicians would cripple productivity. It’s not just about filling jobs; it’s about keeping essential industries moving. Every freight truck, every regional service van, every family car depends on this workforce.”

Motor mechanics - now classified by the Australian Bureau of Statistics as ‘automotive technicians’ - and auto electricians have appeared on national, state and territory skills shortage lists for over a decade.

Despite repeated inquiries and consultations from Jobs and Skills Australia, state education departments and parliamentary reviews, little tangible action has been taken to reverse the decline.

The NSW Productivity Commission’s post-COVID Green Paper also identified automotive mechanics as a persistent shortage occupation, one of the longest-running examples of an unaddressed skills gap in Australia.

“We have an aging workforce, businesses in regional and rural areas closing due to lack of qualified staff, and fewer young people entering trades at all,” Mr Yallouridis said.

Recent data from the National Centre for Vocational Education Research (NCVER) underscores the problem. Its 2024 Generation Z: Life After COVID report found that only 67% of 24-year-olds held a qualification, down from 77% in 2012, and just 54% were in full-time work. 

“These figures show that young Australians aren’t getting the training or the job opportunities they need, and the automotive industry is feeling that acutely,” Mr Yallouridis added.

“If governments don’t act now to strengthen the apprenticeship and training pipeline, this shortage will only deepen, taking small businesses and essential services down with it.”

MTA NSW is calling for a national action plan with coordinated investment in training, incentives for apprenticeships, and recognition of the automotive industry’s role as a key enabler of national productivity.

“Without qualified technicians, the costs flow to everyone - higher repair times, business downtime, and reduced freight efficiency. We need urgent, coordinated action to address this skills gap around the country.”