LABOUR MARKET INFORMATION RESEARCH REPORT · Labour Market Information Research Report: BC Automotive Sector 4 Employers in the sector report high levels of success in retaining employees

BC AUTOMOTIVE SECTOR

LABOUR MARKET INFORMATION RESEARCH REPORT:

Funding provided in whole or in part through The Canada-British Columbia Labour Market Development Agreement

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TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 3

2. INTRODUCTION 7

3. PROFILE OF THE BC AUTOMOTIVE SECTOR 9

4. WORKFORCE CHARACTERISTICS 19

5. RECRUITMENT AND RETENTION 24

6. CERTIFICATION AND TRAINING 30

7. WORKFORCE PROJECTIONS 38

8. SITUATIONAL ASSESSMENT 53

9. CONCLUSIONS 56

APPENDIX A – DESCRIPTION OF SURVEY SAMPLE 57

APPENDIX B – TRAINING INVENTORY BY REGION 59

APPENDIX C – FUNDING SOURCES 63

APPENDIX D – SELECTED OCCUPATIONAL PROFILES 66

APPENDIX E SURVEY QUESTIONNAIRES 72

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Labour Market Information Research Report: BC Automotive Sector

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1. EXECUTIVE SUMMARY

Introduction

In BC, the automotive sector is primarily a service industry based around the sale, maintenance, repair and disposal of motor vehicles. It accounts for 1.9% of provincial GDP and 2.3% of employment. The sector is characterized by small businesses employing fewer than 10 people, with businesses being distributed across the province.

Demographic trends, competition from other sectors, changes in automotive technology and the increasing complexity of the business environment are making it difficult for employers in the sector to attract and retain sufficient numbers of people to maintain the workforce. In response, the BC Automotive Sector Labour Partnership Project was launched in the summer of 2012 to address the long term human resource needs of the automotive sector. This study is the first phase of the project and is intended to provide a comprehensive snapshot of the current labour market that will inform subsequent components of the project.

Approach

This report is based on information gathered through:

Publicly available reports and studies on the automotive sector.

Statistics from Statistics Canada, BC Statistics and Industry Canada.

A survey of industry employers and employees conducted over five weeks between December 2012 and February 20131.

Consultation with industry representatives.

Workforce Characteristics

Compared with the BC labour force those employed in the BC automotive sector are somewhat younger, more likely to be male, less likely to have a university level credential, less likely to be an immigrant and less likely to be a visible minority2. Those employed in trades account for 42% of the workforce, with the next largest groups being sales and service at 21% and finance and administration at 17%.

Recruitment and retention Recruitment is an issue for most employers in the sector and employers expect this to continue to be a challenge going forward. Regions outside the Mainland/Southwest report the greatest difficulty in recruiting staff, and the most difficult positions to recruit are skilled trades and service advisors/estimators. The most commonly identified barriers to recruiting are lack of workers with the necessary skills in the industry, wages and competition from other industries.

1 There were 243 valid responses to the employer survey giving it a margin of error of +/- 6.2% at the provincial level.

The employee survey had 160 valid responses and a margin of error of +/- 7.7%

2 Statistics Canada Census 2006


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Employers in the sector report high levels of success in retaining employees across occupations; however, 25% of employers are intending to leave the industry over the next five years and very few have a succession plan. Almost half of those intending to leave the industry are from mechanical repair and glass repair, which are sub-sectors characterized by small shops. This suggests there is a risk that the size of the sector, and consequently, employment may shrink if those leaving are unable to find buyers for their businesses.

Trades were identified as the most difficult employees to retain, and this group is the most likely to intend to leave the industry in the next five years. Among trades, those employed in collision repair were the most likely to report intending to leave. Wages and lack of career growth opportunities were the reasons employees identified for intending to leave the industry.

Certification and Training

The majority of employers believe certification is important and provide supports to their employees to obtain training. However, training does present a number of challenges for the sector, particularly for tradespeople, service advisors/estimators and business managers. Changing vehicle technologies mean that technicians must engage in ongoing technical training to keep current, and service advisors need to regularly update their knowledge. For business managers, training needs include both technical and management skills. The most significant barriers to engaging in training are lack of availability and lack of time. This suggests that there is a need for alternative methods of delivering training in the sector.

Outlook

The overall level of employment in the automotive sector in BC is expected to continue to rise as the number of cars on the roads rise; however, the composition of the workforce is expected to change. Relatively fewer Automotive Service Technicians with advanced diagnostic skill will likely be needed, while demand for installers and maintenance staff will grow. Employment in the collision repair sector is expected to decline if current trends in total losses and claims continue.

The tight labour market is expected to persist which means that it may be difficult to find suitable staff, employers can expect recruitment to take extended periods of time and positions may go unfilled. This is consistent with what is expected in other industries that employ a large number of trades (such as construction), which means that competition from other industries will continue to pose a challenge to employers in the automotive sector.

Strengths, weaknesses and opportunities

The primary human resource challenge facing the sector is attraction and recruitment of new employees. The strengths of the industry with respect to attraction and recruitment are:

Industry stability. The automotive sector in BC is a mature industry and is less cyclical in nature than industries such as residential construction. This means that there will not be rapid expansion, but rather employment growth is expected to continue to follow that of vehicles on the road and population.

Job Security. The stability of the industry means that job security is relatively high.

Availability of local employment opportunities. Local employment opportunities exist in each region which means potential employees may not need to move to find employment.

The weaknesses of the industry with respect to attraction and recruitment are:


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Wages. Wages in the industry tend to be less than those paid in other industries with high levels of trades occupations and compared to their counterparts in Alberta.

Career path/advancement. The industry is primarily made up of small shops employing less than 10 people which makes it difficult to provide career advancement opportunities within an organization.

Physical nature of work and health issues. Automotive trades require physical strength and stamina, and this may be a factor in the decision of older workers to leave these occupations.

Opportunities for improving attraction and retention in the sector are:

Succession planning. This can be used to encourage retention and provide career opportunities for employees.

Match apprentices with employers. Currently students completing a foundation program receive limited support in finding potential employers with which to do an apprenticeship. Developing a system of matching foundation graduates with employers will facilitate the matching process and may improve placement rates.

Develop a job board for the automotive sector. Currently employers use an assortment of mediums and word-of-mouth to advertise vacancies. The most common methods were word-of-mouth (76%) and referral by friends, colleagues or employees (74%). Creation of a centralized job board would expand the reach of postings and has the potential to provide a larger pool of applicants.

Develop career paths. Defining and communicating career paths may help make the sector more attractive both to those who already have a connection to the industry and those who do not have a connection.

Highlight job security and industry stability. Wages are lower in the automotive sector than in resource extraction industries but job security is relatively high, meaning that earnings may be higher over the long term. This can be used as part of a recruitment program directed at students in trades.

Diversify the workforce. First Nations, women, immigrants and visible minorities are under-represented in the automotive sector. These groups represent the fastest growing sectors of the labour force so marketing of the industry targeted to these groups can be used as part of a strategy to address recruitment issues.

Facilitate training through alternative delivery mechanisms. Lack of time and availability of training were cited as the primary barriers to engaging in training. Options to overcome this include developing short courses delivered online which employees could take during slow periods or having temporary replacement staff come in so employees can engage in training. Where regional availability is the primary problem, funding mechanisms can be developed to either provide training in the area or subsidize travel costs for employees to receive the training in other regions.

Encourage knowledge transfer. Many older technicians find the physical demands of mechanical and collision repair are too strenuous. These technicians can be used to provide mentoring/training to younger technicians in a number of ways including:

o Delivery of short courses through an online format. o Working casually or part-time to allow full-time technicians to engage in training.


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Recommendations

Given the structure of the sector, individual businesses are unlikely to be able to dedicate resources to the development of human resource strategies and training plans. To facilitate this we recommend the sector:

Develop a knowledge base of best practices where employers can share the strategies that they have used around recruitment, retention and training as well as the outcomes. Shared learning will assist in the transfer of knowledge and development of effective recruitment and retention strategies.

Develop tools for matching of employers and employees including apprentices.

Develop career paths within the industry and communicate these both within the industry and to potential employees.

Develop succession planning supports for small businesses.

Develop effective online tools to facilitate technical training and management training.

Facilitate knowledge transfer from experienced technicians to apprentices by providing options for older technicians as either mentors or as part-time casual employees providing relief while full-time technicians engage in training.

Expand the diversity of the workforce by developing outreach programs targeting women, First Nations and immigrants.


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2. INTRODUCTION

2.1 BACKGROUND AND PURPOSE

The BC automotive industry plays an important role in the provincial economy through the provision and maintenance of the vehicle fleet which supports the flow of goods and services throughout the province. In doing this, the sector employs approximately 45,000 people across the province in a combination of technical and professional occupations.

Demographic trends, competition from other sectors, changes in automotive technology and the increasing complexity of the business environment are making it difficult for employers to attract and retain sufficient numbers of people to maintain the workforce. In response, the BC Automotive Sector Labour Partnership Project was launched in the summer of 2012 to address the long term human resource needs of the automotive sector. This study is the first phase of the project and is intended to provide a comprehensive snapshot of the current labour market which will inform subsequent components of the project.

The specific objectives of this report are to:

Develop a profile of BC’s automotive sector which will provide insight into the overall contribution to the provincial economy, employment levels by sub-sector and the size and type of businesses in each sub-sector.

Develop a profile of the current workforce.

Identify labour market trends over the past five years.

Identify industry trends and demographic trends that will impact the labour market and workforce in the next five to ten years.

Identify factors affecting recruitment and retention of employees.

Identify skills gaps and training needs of the sector.

Develop forecasts of labour supply and demand in the sector to identify workforce gaps.

Identify strategies to address the identified issues related to human resources.

2.2 APPROACH

In preparing this report MNP carried out the following activities:

Conducted research through publicly available studies and reports.

Gathered industry data and statistics through Statistics Canada, BC Stats and industry associations.

Conducted a survey of employers and employees in the BC automotive sector.

Consulted industry representatives to gather information on training and certification.

Facilitated a workshop with industry members to validate research findings.

2.3 SURVEY

Information on recruitment, retention, training gaps and preferred training modes was gathered through a survey of employers and employees in the automotive sector conducted over five weeks between December 2012 and February 2013. Surveys were distributed to businesses across the province and respondents were given the option of completing the survey online or by mailing or faxing the completed survey to MNP. This was supplemented with a phone


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campaign targeting employees. There were 243 valid responses to the employer survey giving it a margin of error of +/- 6.2% at the provincial level. The employee survey had 160 valid responses and a margin of error of +/- 7.7% at the provincial level. A description of the survey samples and regional distributions of respondents is provided in Appendix A.

2.4 STRUCTURE OF THE REPORT

The remainder of this report is divided into six sections:

Section 3 provides an overview of BC’s automotive sector and profiles businesses in the sector.

Section 4 describes the sector’s workforce.

Section 5 reviews the results of the employer and employee surveys with respect to recruitment and retention.

Section 6 reviews the results of the employer and employee surveys with respect to certification and training.

Section 7 provides workforce projections by region and occupation based on the BC Labour Market Scenario Model.

Section 8 reviews the automotive sector’s strengths, weaknesses and opportunities with respect to attraction and recruitment of employees.

Section 9 summarizes the conclusions of the analysis and provides recommendations on how the sector can improve attraction, recruitment and training.

A description of the survey sample is provided in Appendix A and copies of the questionnaires are provided in Appendix E.

Information on training availability for the sector is listed in Appendix B.

Information on funding sources for training is listed in Appendix C.

Selected occupational profiles for the sector are provided in Appendix D.


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3. PROFILE OF THE BC AUTOMOTIVE SECTOR

In this section, a profile of the BC automotive sector is presented. This profile includes direct output as measured by Gross Domestic Product (“GDP”), employment and size and type of businesses. For selected sub-sectors profiles of the typical business are presented.

Sector Definition

In BC, the automotive sector is primarily a service industry based around the sale, maintenance, repair and disposal of motor vehicles. For the purposes of this study the industry has been defined to include the 10 sub-sectors listed in Table 3-1. The analysis that follows is based on these sub-sectors. Where data limitations did not permit reporting by each sub-sector, sub-sectors have been grouped.

Table 3-1: Definition of the BC automotive industry by North American Industry

Classification System (NAICS) codes

Sub-sector NAICS Code3

Auto Glass 811122 Automotive Glass Replacement Shops

Collision Repair 811121 Automotive Body, Paint and Interior Repair and Maintenance

Mechanical Repair 81111 Automotive Mechanical and Electrical Repair and Maintenance

Auto Recyclers 41531 Used Motor Vehicle Parts and Accessories Wholesaler-Distributors

PowerSport Dealers 4412 Motorcycle, Recreational, Boat and Other Motor Vehicle Dealers

Towing and Recovery 48841 Motor Vehicle Towing

New Car Dealers 44111 New Car Dealers

Used Car Dealers 44112 Used Car Dealers

Auto Rental and Leasing

5321 Automotive Equipment Rental and Leasing – includes Passenger Car Leasing and Rental; Truck, Utility Trailer and Recreational Vehicle Rental and Leasing

Parts 44131 Automotive Parts and Accessories Stores

Excluded are

415 Motor Vehicle and Parts Wholesaler-Distributors (Suppliers);

811192 Car Washes

811199 All Other Automotive Repair and Maintenance (e.g. Diagnostic centres, motor vehicle; Emissions testing service, automotive, without repair; Lubrication services, motor vehicles; Motor vehicle emissions testing, without repairs; Rustproofing service, automotive; Tire repairing; Undercoating service, automotive)

3 NAICS codes are assigned based on the primary purpose of the establishment. A business that is primarily

engaged in retailing parts but has a small shop where repairs are performed will be assigned to Parts. On the other hand if the shop is primarily engaged in mechanical repair but also sells parts it will be assigned to mechanical repair.


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44132 Tire Dealers

418110 Recyclable Metal Wholesaler-Distributors - comprises establishments primarily engaged in buying, breaking up, sorting and selling ferrous and non-ferrous scrap metal, including automobiles for scrap4. These are the companies that crush automobiles after they are dismantled for parts

3.1 VALUE CHAIN

The economic activity created by the automotive industry can be illustrated by a “value chain”. The value chain displayed in Figure 3-2 illustrates the primary activities of the sub-sectors, how they fit together and the services that support the industry.

Figure 3-2: Relationships within the BC automotive industry

4 Includes automotive wrecking for scrap, wholesale; dismantling machinery for scrap; dismantling ships; iron and

steel scrap, wholesale; marine wrecking, ships for scrap; metal waste and scrap, wholesale; non-ferrous metals scrap, wholesale; wreckers, auto, wholesale.

Suppliers

Retail and

Transportation Services

Maintenance

and Repair

Dismantling

and Recycling

• New and used automobile and light-duty truck wholesaler-

distributors• Truck, truck tractor

and bus wholesaler-distributors

• Recreational and other

motor vehicles wholesaler-distributors

• Tire wholesaler-distributors

• Other new motor

vehicle parts and accessories

wholesaler-distributors• Used motor vehicle

parts and accessories

wholesaler-distributors

• New car dealers• Used car dealers• PowerSport dealers

• Passenger car leasing• Passenger car rental

• Truck, utility trailer and recreational vehicle rental and leasing

• Motor vehicle towing

• Emergency road service

• Automotive glass

replacement shops• Automotive body, paint

and interior repair and maintenance

• Automotive

mechanical and electrical repair and

maintenance• Automotive parts and

accessories stores

• Used motor vehicle parts and accessories wholesaler-distributors

• Facility construction, renovation, rentals and maintenance

• Financial services: Accounting Insurance

Bank financing

• Legal and professional services

• Information technology

support

• Human resources support

• Marketing services

• Administrative services


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3.2 SECTOR CHARACTERISTICS

This section examines the automotive industry’s direct contribution to the BC economy in terms of output and employment using data from Statistics Canada.

Table 3-3: Contribution of BC’s automotive sector by sub-sector, 2011

GDP (millions)

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Employment6

BC Automotive Industry $3,553.2 44,771

Motor vehicle and parts dealers 48.9% 54.8%

Automotive repair and maintenance 22.9% 29.3%

Support activities for road transportation 14.8% 9.1%

Automotive equipment rental and leasing 12.5% 6.1%

Auto recyclers 0.9% 0.7%

Source: Statistics Canada

The automotive sector is responsible for approximately 1.9% of the province’s total GDP and 2.3% of provincial employment7.

Vehicle and parts dealers account for over half the employment in the industry and slightly less than half of GDP. Repair and maintenance which includes collision repair, glass repair and mechanical repair is the next largest contributor. Combined these two categories account for 84% of employment and 72% of GDP.

Employment trends

Table 3-4: Percentage change in employment by sub-sector, 2007 to 2011

Percentage Change

BC Automotive Industry +1.9%

Motor vehicle dealers -5.6%

PowerSport dealers -1.2%

Automotive parts, accessories and tire stores +37.5%

Automotive repair and maintenance -3.5%

Support activities for road transportation +20.5%

Automotive equipment rental and leasing +1.3%

Auto recyclers -28.2%


5 Statistics Canada CANSIM Tables 379-0027 and 379-0031, Chained $2007

6 Statistics Canada CANSIM Table 281-0024

7 Comparison to provincial employment based on Statistics Canada Survey of Employment, Payrolls and Hours

(SEPH) industrial aggregate employment figure which covers all industrial sectors except those primarily involved in agriculture, fishing and trapping, private household services, religious organisations and the military personnel of the defence services.


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Employment in the automotive sector grew 1.9% between 2007 and 2011. This was largely driven by employment growth in parts, accessories and tire stores.

Figure 3-5: Employment by sub-sector, 2007 to 2011

Source: Statistics Canada.

Employment in vehicle dealers and repair and maintenance fell by 7% between 2007 and 2008 which coincides with the global economic downturn. Since then employment in these sectors has increased but is still below its 2007 level.

Figure 3-1 Distribution of employment by region

Source: Statistics Canada, Census 2006

02,0004,0006,0008,000

10,00012,00014,00016,00018,000

Vehicle dealers

PowerSport dealers

Automotive parts,

accessories and tire stores

Automotive repair and

maintenance

Support activities for

road transportation

Automotive equipment rental and

leasing

Used motor vehicle parts

and accessories wholesaler-distributors

Em

plo

ym

en

t

2007 2008 2009 2010 2011

Vancouver Island Coast 16%

Mainland/Southwest 55%

Southern Interior 24%

Nothern BC 5%


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The regional employment distribution is closely related to the population distribution in the province. Over half of employment in the industry is in the Mainland/Southwest as illustrated in Figure 3-1. The southern interior which comprises the Cariboo, Thompson/Okanagan and the Kootenay regions has the next largest share, followed by Vancouver Island/Coast and Northern BC.

Number and size of establishments

Table 3-2 Number and size of establishment by sub-sector, 2012

Number of establishments

Number of Employees

Less than 10 10-49 More than 50 Unknown

All sub-sectors 7435 48.0% 13.6% 2.1% 36.2%

New car dealers 472 10.2% 55.1% 24.2% 10.6%

Used car dealers 508 40.9% 5.1% 0.6% 53.3%

PowerSport dealers 584 42.3% 21.2% 1.0% 35.4%

Parts stores 554 44.0% 22.2% 3.4% 30.3%

Mechanical repair 2,855 59.9% 4.9% 0.2% 35.0%

Collision repair 1,143 47.7% 15.8% 0.3% 36.1%

Auto glass 240 70.0% 4.6% 0.4% 25.0%

Motor vehicle towing

308 38.0% 14.3% 0.0% 47.7%

Automotive rental and leasing

685 35.6% 13.0% 0.9% 50.5%

Auto recyclers 86 45.3% 17.4% 0.0% 37.2%


Most businesses in the automotive sector have fewer than 10 employees. This is consistent across all sub-sectors except new car dealers.

Following the 2008 economic downturn the number of new car dealers in BC declined by approximately 10%8 which is consistent with the national trend. At the same time, the number of used vehicle dealers increased nationally which may indicate that some new car dealers began exclusively selling used cars.

8 Statistics Canada. Table 080-0023 - Annual retail store survey, financial estimates by North American Industry

Classification System (NAICS) and store type, annual (dollars unless otherwise noted).


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Figure 3-6: Distribution of establishments by sub-sector9

The majority of businesses (57%) in the sector are engaged in providing repair and maintenance services. This includes mechanical, collision and glass repair. Retail sales which includes vehicle sales and parts accounts for 28.5% of businesses. Rental, leasing and support services are the remaining 14.5%.

3.3 BUSINESS PROFILES

Profiles of the typical establishments were developed for Vehicle Dealers, Mechanical Repair Shops, Collision Repair Shops and Glass Repair Shops based on information gathered through the employer survey, Statistics Canada and Industry Canada. Insufficient data was available to develop profiles for the other sub-sectors.

Vehicle Dealers

This sub-sector includes new and used car dealers. New car dealers tend to be larger and as a group their operations are more similar than used car dealers so only one profile is provided. Used car dealers are a more diverse group and have been divided into two groups based on revenues to reflect this diversity.

9 Statistics Canada Table 551-0002, Establishment counts from Canada Business Register, 2012

New car dealers, 6.3%Used car dealers, 6.8%PowerSport dealers, 7.9%Parts stores, 7.5%Mechanical repair, 38.4%Collision repair, 15.4%Auto glass, 3.2%Motor vehicle towing, 4.1%Automotive rental and leasing, 9.2%Auto recyclers, 1.2%


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Table 3-7 Profile of typical vehicle dealers in BC

New Car Dealers Used Car Dealers

Revenues > $2 million

Revenues < 1 million

Revenues > 1 million

Number of employees 20 or more Less than 10 10 or more Time in business 10 years or more One third less than

10 years 10 or more years

Business model Mix of corporations and franchises

Mix of corporation, partnerships and sole proprietorships

Corporation

Number of locations Multiple One One Trades and Technical 10 to 20 2 4 Other shop staff 3 to 5 2

2

Parts 4 1 3 Sales and Customer Service

6 2 5

Administrative 5 1 5 Management 4 1 3 Apprentices 3 2 1

Source: Employer survey, MNP analysis

The majority (72.5%10) of new car dealers employ more than 20 people with the typical dealership having between 20 and 49 employees. Most positions are full-time but some sales and administrative staff may work part-time.

New car dealers tend to offer a range of services including used vehicle sales, parts, collision repair and mechanical repair and maintenance and this is reflected in the size and greater diversity of their workforce.

The sale of new vehicles requires a licensing agreement with the manufacturer which effectively restricts entry into this market. As a result, most businesses in this group have been in operation for more than a decade.

Used car dealers are primarily small businesses employing fewer than 10 people (88%11) and have revenues of less than $1 million. They are less diversified in terms of their service offerings than new car dealers but may offer collision or vehicle repair and maintenance services.

Used car dealers with revenues of more than $1 million tend to be more diversified in their service offerings and have been in business longer than those with revenues less than $1 million. There are fewer barriers to entry in this group which means that there is a mix of length of time that businesses have been in operation for.

10

Statistics Canada. Table 551-0002 - Canadian business patterns, location counts, employment size and North American Industry Classification System (NAICS), national industries, by Canada and provinces, semi-annual (number)

11 Statistics Canada. Table 551-0002


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Mechanical Repair

The mechanical repair sub-sector is characterized by small shops which are broken into two groups based on revenues.

Table 3-8 Profile of typical mechanical repair shops

Revenues Less than $1 million Greater than $1 million Number of employees Less than 10 More than eight Time in business Half less than 10 years 10 or more years Business model Mix of corporation and sole proprietors Corporation Number of locations One One Trades and Technical 5 10 Other Shop staff 1 1.5 Parts 1 1 Sales and Customer Service 0 0 Administrative 2 4 Management 1 1 Apprentices 1 2 Source: Employer survey, MNP analysis

Mechanical repair shops tend to specialize in offering mechanical repair services and rarely provide other services.

There are few barriers to entry for mechanical repair shops and this is reflected in the tendency towards small shops and the mix of length of time in business.

Mechanical repair shops tend to employ fewer than 10 people (92%12), the majority of which are trades and technical staff. In many of these shops the owner is also one of the tradespeople and staff often have multiple roles.

Employment tends to be full-time and very few part-time positions are offered.

12

Statistics Canada. Table 551-0002


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Collision Repair

The collision repair sub-sector is characterized by a mix of small and medium-sized shops. These are broken into three groups based on revenues and profiled in Table 3-9.

Table 3-9 Profile of typical collision repair shops

Revenues

Less than $1 million $1 million to $2 million Greater than $2 million

Number of employees Less than 10 5 to 20 5 to 20 Time in business 25 or more years 25 or more years 25 or more years Business model Corporation or sole

proprietorship Corporation or sole

proprietorship Corporation or sole

proprietorship Number of locations One One Multiple Trades and Technical 4 8 to 12 10 to 15 Other Shop staff 1 3 4 to 6 Parts 1 1 2 Sales and Customer Service

0 1

Administrative 2 2 to 4 5 or 6 Management 1 1 or 2 1 Apprentices 1.5 2.5 2.5 Source: Employer survey, MNP analysis

Like mechanical repair, collision repair shops tend to specialize and do not offer other services. If another service is offered, it is most likely glass repair.

The majority of the staff are tradespeople and as the scale of the operation increases the ratio of support staff to tradespeople is relatively stable.

Most positions tend to be full-time, however, in larger operations there are some part-time administrative and customer service roles.

Collision repair is characterized by shops that have been in business for more than 25 years. Most expansion is through the opening of additional locations as opposed to new entrants. This is likely a reflection of the barrier to entry created by the Insurance Corporation of BC’s (“ICBC”) accreditation program. To become accredited takes approximately two years and non-accredited shops receive lower rates from ICBC. Accredited shops perform 93% of ICBC’s auto body work suggesting that accreditation gives a shop an advantage in attracting customers.13. This coupled with the lower rates non-accredited shops receive puts new businesses at a disadvantage and effectively restricts entry into the collision repair market.

13

Ministry of Finance, Review of Insurance Corporation of British Columbia, August 2012


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Glass Repair

Glass repair is characterized by small shops and is broken into two groups based on revenues.

Table 3-10 Profile of typical glass repair shops

Revenues

Less than $1 million Greater than $1 million Number of employees two to four Less than 10 Time in business 10 years or more 25 years or more Business model Corporation or franchise Corporation or franchise Number of locations One One or two Trades and Technical 1 to 3 5 to 8 Other shop staff 0 0 Parts 0 0 Sales and Customer Service 1 1 Administrative 1 1 Management 1 1 Apprentices 2 0 Source: Employer survey, MNP analysis

Glass repair shops are small operations which have less than 10 employees, most of whom are tradespeople or technical staff.

This sub-sector has more franchise operations than either mechanical repair or collision repair.

Glass repair shops often offer residential and/or commercial glass services in addition to automotive glass.

Like collision repair, most shops have been in business for over a decade. ICBC’s Glass Express program may have a similar influence on entry into this market that which the accreditation program has on collision repair.


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4. WORKFORCE CHARACTERISTICS

In this section we develop demographic profiles of the workforce by occupation using 2006 Census data. Occupational groupings are based on the Standard Occupational Classification 1991 and are grouped into six categories based on skill and required education levels. These are trades, sales and service, finance and administration, truck drivers and managers.

Those working in the BC automotive sector are somewhat younger, are more likely to be male, are less likely to have a university education and are less likely to be immigrants or visible minorities than the overall provincial labour force (see Table 4-1). There are differences by occupation and region and these are discussed below.

Table 4-1 Demographic characteristics by region, BC and Automotive Sector

BC Automotive Sector

Mainland/ Southwest

Vancouver Island/ Coast

Interior Northern BC

Mainland/ Southwest



Age group

15 to 24 15.2% 15.8% 16.4% 17.0% 16.8% 16.5% 16.9% 25.1%

25 to 44 45.5% 38.8% 38.2% 42.0% 44.9% 39.9% 41.5% 39.9%

45 to 54 23.8% 26.5% 26.8% 24.7% 23.1% 27.4% 25.6% 22.2%

55 to 64 12.9% 15.9% 15.2% 13.0% 12.3% 13.4% 12.9% 9.9%

65+ 2.6% 3.1% 3.3% 3.2% 2.9% 2.8% 3.3% 2.4%

Education

Less than high school 11.0% 13.2% 16.6% 23.3% 12.1% 13.0% 17.3% 23.1%

High school 28.6% 27.4% 29.3% 31.5% 31.7% 32.6% 33.6% 32.3%

Trades certification 9.6% 12.9% 14.9% 14.8% 23.1% 29.7% 28.3% 24.5%

College diploma 25.0% 24.4% 24.1% 20.9% 24.7% 20.5% 18.1% 16.8%

BA or above 27.0% 20.2% 12.9% 10.5% 8.4% 3.9% 2.5% 2.9%

Male 52% 51% 53% 56% 80.8% 80.0% 78.5% 73.4%

Visible minority 35.3% 6.8% 4.2% 3.6% 31.1% 3.2% 2.1% 1.5%

Immigrant 39.2% 15.2% 11.0% 10.1% 34.1% 9.8% 8.0% 6.7%



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Trades

Trades account for 42% of the automotive sector workforce. In this group are those whose primary responsibilities are the servicing and repairing of vehicles. Automotive Service Technicians includes motor vehicle mechanics, technicians, and mechanical repairers. Motor Vehicle Body Repairers are those employed repairing damaged vehicles.

Table 4-2 Demographic characteristics by region, trades

Automotive Service Technicians Motor Vehicle Body Repairers

Mainland/ Southwest



Mainland/ Southwest



Age group

15 to 24 13.4% 16.6% 14.1% 22.6% 9.4% 12.6% 10.1% 0.0%

25 to 44 47.3% 40.6% 47.4% 46.0% 54.4% 57.9% 51.5% 67.4%

45 to 54 25.3% 26.7% 25.9% 18.5% 24.4% 26.3% 24.2% 23.9%

55 to 64 12.7% 13.9% 11.5% 10.5% 10.5% 3.2% 14.1% 8.7%

65+ 1.3% 2.2% 1.1% 2.4% 1.3% 0.0% 0.0% 0.0%

Education

Less than high school 6.9% 4.9% 8.0% 12.7% 12.8% 14.4% 8.7% 7.5%

High school 15.1% 13.0% 14.2% 13.4% 13.8% 23.3% 15.4% 15.1%

Trades certification 42.9% 52.6% 56.3% 50.7% 43.4% 46.7% 47.1% 54.7%

College diploma 30.1% 28.0% 19.9% 22.5% 26.6% 13.3% 28.8% 22.6%

BA or above 5.0% 1.5% 1.7% 0.7% 3.4% 2.2% 0.0% 0.0%

Male 98.9% 98.3% 100.0% 98.2% 98.3% 97.8% 91.2% 100.0%


Immigrant 27.7% 8.8% 13.4% 7.0% 31.5% 16.0% 9.8% 0.0%


Employees in the trades are almost exclusively male.

Automotive Service Technicians are more likely to be over age 55 than Motor Vehicle Body Repairers. This may reflect differences in the nature of the work that provides more opportunities for Automotive Service Technicians to do less physically demanding work.

Automotive Service Technicians tend to have at least a high school credential and most have a trade certification or college diploma.

Motor Vehicle Body Repairers are less likely to have a trade certificate or above than Automotive Service Technicians; however, the data presented likely understates the education levels of the current workforce. In 2001 ICBC introduced its accreditation system which requires certification of technicians so over time this would be expected to lead to increased levels of certification in this occupation.


21

Sales, service, finance and administrative occupations

Sales and service occupations represent 21% of the sector’s workforce and include those whose primary responsibilities are retail sales and customer service. Finance and administration are approximately 17% of the workforce and include those whose occupations are clerical involving general office duties or related to accounting, bookkeeping or financing.

Table 4-3 Demographic characteristics by region, Finance, Administration, Sales and

Service Occupations

Sales and Service Finance and Administration

Mainland/ Southwest



Mainland/ Southwest



Age Group

15 to 24 28.3% 27.8% 31.2% 50.5% 17.2% 9.8% 13.2% 12.8%

25 to 44 35.0% 38.0% 37.3% 18.6% 48.6% 44.2% 41.5% 53.0%

45 to 54 19.3% 18.4% 17.7% 19.6% 21.0% 30.9% 29.7% 24.8%

55 to 64 14.4% 13.6% 12.2% 8.2% 10.7% 13.6% 13.4% 9.4%

65+ 3.0% 2.1% 1.5% 3.1% 2.6% 1.5% 2.2% 0.0%

Education

Less than high school 17.2% 18.8% 23.1% 35.6% 10% 13% 12% 17%

High school 44.5% 48.8% 52.4% 40.6% 40% 46% 47% 38%

Trades certification 8.6% 9.7% 9.2% 10.9% 11% 12% 13% 10%

College diploma 20.2% 17.5% 12.6% 12.9% 28% 25% 25% 27%

BA or above 9.4% 5.2% 2.7% 0.0% 10% 4% 3% 7%

Male 83.8% 82.2% 78.9% 73.3% 35.2% 35.7% 31.0% 19.4%


Immigrant 25.0% 8.4% 5.2% 4.8% 22.5% 8.0% 7.4% 7.5%


Like trades, education levels reflect the job requirements.

The majority of those employed in finance and administration are women and this group tends to be more likely to have university level credential than other occupations in the sector.

Like finance and administration, sales and service employs more women than other occupations in the sector.

Those working in sales and service occupations are the youngest group and have among the lowest levels of education. This may be a reflection of the age profile and


22

many people in this group are likely in entry level positions and to be in the process of obtaining credentials.

Truck drivers

Truck drivers represent about 3% of the workforce and include those who drive delivery vehicles and tow trucks.

Table 4-4 Demographic characteristics by region, Truck Drivers

Truck Drivers

Mainland/Southwest Vancouver Island/Coast Interior Northern BC

Age group

15 to 24 16.2% 6.3% 10.4% 18.8%

25 to 44 49.5% 50.0% 37.3% 43.8%

45 to 54 25.7% 34.4% 25.4% 12.5%

55 to 64 5.7% 9.4% 19.4% 12.5%

65+ 2.9% 0.0% 7.5% 12.5%

Education

Less than high school 23.6% 33.3% 37.1% 63.2%

High school 41.5% 24.2% 32.9% 10.5%

Trades certification 14.2% 21.2% 14.3% 26.3%

College diploma 13.2% 21.2% 15.7% 0.0%

BA or above 7.5% 0.0% 0.0% 0.0%

Male 98.1% 81.8% 97.1% 100.0%

Visible minority 18.3% 0.0% 0.0% 0.0%

Immigrant 23.9% 0.0% 5.3% 10.5%


This group has lower levels of education than other occupations in the sector which is consistent with the educational requirements for these positions.

This group also tends to have a larger proportion of people aged 65 and over than other occupations.

Managers

This category includes those employed as supervisors and managers. The sample was too small to break down by region. This group has a similar age profile to those employed in sales and approximately 39% are women. In this group, 42% have a non-trades related post-secondary credential which is significantly higher than in other occupations.


23

Tenure in industry and occupation

Employees in the automotive sector tend to be long tenured as shown in Table 4-5.

Table 4-5 Employee tenure in industry and occupation

Tenure in industry Tenure in occupation

Less than 2 years

2 to 10 years

More than 10 years

Less than 2 years

2 to 10 years

More than 10 years

Trades 7% 35% 58% 11% 36% 52%

Technical 5% 24% 71% 5% 38% 57%

Customer Service 6% 24% 71% 12% 71% 18%

Sales* 20% 40% 40% 17% 83% 0%

Administrative 33% 33% 28% 26% 37% 37%

Tow Truck driver* 0% 57% 43% 0% 71% 29%

Business manager 8% 15% 77% 15% 15% 69%

Other management / administration

18% 24% 59% 24% 35% 41%

Source: Employee survey

*Small sample so results should be interpreted with caution.

The majority of employees in trades and technical occupations have been in the industry and their occupation for more than 10 years. There is some indication that people have moved into these occupations from other occupations in the industry.

Those in administrative and other management positions tend to have lower tenure in both the industry and their occupation than those in other positions. This is likely due to a large number of these positions being entry level and the skill set associated with them being more transferable to other industries.

Business managers are more similar to trades and technical occupations in that the majority have been in the industry for more than 10 years. The distribution of tenure in this occupation is consistent with career progression in the industry.


24

5. RECRUITMENT AND RETENTION

5.1 RECRUITMENT

In this section we review the results of the employer survey with respect to recent experience with recruitment, expectations about future recruitment and perceptions around recruitment challenges. We find that:

Recruitment is an issue for most employers and they expect this to continue to be a challenge going forward.

Trades and service advisor/estimators are the occupations most difficult to recruit.

Lack of workers with the necessary skills in the industry, wages and competition from other industries were the most commonly identified barriers to recruiting.

Recruitment experience

Figure 5-1 Difficulties recruiting, by sector and region

Source: Employer survey

The majority of employers surveyed reported that they had experienced difficulty in recruiting during the past 24 months.

Respondents in the Interior were the most likely to report difficulty recruiting, followed by the Thompson Okanagan, Mainland/Southwest and Vancouver Island/Coast.

Similar levels of difficulty were reported across sectors.

Industry wide shortage of workers with the necessary skills (32%), lack of skills related to the industry (30%), wages (28%) and competition from outside the industry (25%) were the primary reasons employers gave for having difficulty recruiting.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Vancouver Island/Coast

Mainland/Southwest

Thompson/Okanagan

Interior

All regions

Vehicle dealers

Mechanical repair

Collision repair

Glass repair

other

All sectors

Difficult Somewhat difficult Not at all difficult


25

Expectations about future recruitment14

Table 5-2 Occupations expected to be difficult to recruit in the future, by sector

Vehicle Dealers

Mechanical Repair

Collision Repair

Glass Repair

Other

Automotive Service Technician X X X X X

Motor Vehicle Body Repairer X X X

Painter X X X

Glass Technician X X

Estimator/service advisor/customer service representative X X X X X

Apprentice X X X X X


Trades and estimator/service advisor/customer service representative were the positions that were consistently identified across all sectors and regions as being difficult to recruit and employers expect to continue having difficulty recruiting in these areas.

Glass technicians were only perceived as being difficult to recruit in the Thompson/Okanagan and this is expected to continue to be the case in the future both in this region and in the Vancouver Island/Coast region

In the Mainland/Southwest employers are expecting business managers to be difficult to recruit in the future.

Estimator/service advisor/customer service representative are not expected to be difficult to recruit in the Thompson/Okanagan in the future.

The most commonly cited reasons for expectations around future recruiting difficulty were too few people entering the industry (57%), aging population (26%) and competition from outside the industry (25%).

5.2 RETENTION

In this section we review the results of the employer survey with respect to experience with retention of employees and intentions to remain in the industry over the next five years. We find that

Employers have generally been successful in retaining employees but a sizeable number of employers intend to leave the industry within the next five years.

Trades are the most difficult employees to retain and as we discuss in the next section this group is the most likely to intend to leave the industry in the next five years.

14

For the purposes of this analysis a position was considered difficult to recruit if it was identified by at least 25% of total respondents as being difficult to recruit or at least 25% of respondents from a given sector identified it as difficult to recruit or if it was ranked in the top five among all respondents.


26

Barriers to retention are wages and lack of career growth opportunities.

Retention experience

Figure 5-3 Success retaining employees by type and region


Employers reported high levels of success in retaining employees and this was consistent across all sectors.

The least success in retaining employees was in the Interior. Retention of apprentices and non-journeymen employees in the Interior was well below that in other regions, while retention of journeymen was only slightly lower. Inability to retain apprentices may be due to the availability of training as employers in the Interior were the most likely to cite lack of training opportunities as a barrier to recruiting.

Among sectors, vehicle dealers reported less success in retaining employees than other sectors. This was most striking with respect to apprentices where 43% of vehicle dealers reported being unsuccessful compared to 12% in other sectors.

Barriers to retention were wages, lack of career growth opportunities and poor work performance. For businesses employing less than 10 people, benefits were the second most commonly identified barrier along with performance. For businesses employing more than 10 people, hours of work was cited almost as frequently as lack of career growth and performance.

The positions employers identified as the most difficult to retain were Motor Vehicle Body Repairers (14%), Automotive Service Technicians (12%), Detailers (10%) and Painters (10%). This was consistent across regions.

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%


Mainland/Southwest

Thompson/Okanagan

Interior


Mainland/Southwest

Thompson/Okanagan

Interior


Mainland/Southwest

Thompson/Okanagan

Interior

Ap

pre

nti

ces

Jou

rney

men

Oth

er

Successful Somewhat successful Unsuccessful


27

Intentions to remain in the industry

Figure 5-4 Employer intentions to leave the industry


Approximately 25% of employers are planning on leaving the industry in the next five years. This includes both those planning to retire and those who are selling their business but not retiring.

Of those planning on retiring or selling their business only 35% have a succession plan in place. The most common succession plan is to sell the business to family member or existing employee.

5.3 EMPLOYEE SATISFACTION

In this section we review the results of the employee survey with respect to their satisfaction with various elements of their job and their intention to remain in the industry over the next five years. We find that:

The barriers to retention identified by employers are consistent with employee satisfaction levels with various aspects of their jobs.

Trades are the group most likely to intend to leave the industry over the next five years.

Employee satisfaction Career advancement was identified as having the highest levels of dissatisfaction across occupations as shown in Figure 5-5.

0% 20% 40% 60% 80% 100%

Vehicle dealers

Mechanical repair

Collision repair

Glass repair

Other

Total

Yes No Don't know


28

Figure 5-5 Satisfaction with career advancement by occupation group


For trades, pay was as unsatisfactory as career advancement while for other occupations dissatisfaction with pay was much lower as shown in Figure 5-6.

Figure 5-6 Satisfaction with pay by employee group


Availability of training both technical and non-technical received relatively high levels of dissatisfaction from occupation groups other than trades. This was highest among management where 33% expressed dissatisfaction with technical training availability and 25% expressed dissatisfaction with the availability of non-technical training.

0% 20% 40% 60% 80% 100%

Trades

Technical

Sales and customer service

Administration

Management

Satisfied Somewhat Satisfied Not Satisfied

0% 20% 40% 60% 80% 100%

Trades

Technical

Sales and customer service

Administration

Management

Satisfied Somewhat Satisfied Not Satisfied


29

Job security and career choice received the highest levels of satisfaction across occupations with over close to 90% of respondents expressing satisfaction with job security and 80% expressing satisfaction with career choice.

The majority of employees would recommend their occupation (82%). Trades and technical staff were less likely than other groups to recommend their occupation (60%) and those working in collision repair were the least likely to recommend their occupation (47%). Reasons given include pay, health concerns and the cost of tools.

Employee intentions

Figure 5-7 Employee future intentions by occupation


* Small sample so results should be interpreted with caution.

Most employees intend to remain in the industry over the next five years.

Those in trades and technical occupations are the most likely to be planning on leaving the industry and wages were the primary reason given for this. Motor Vehicle Body Repairers are much more likely to intend to leave the industry than those employed in other trades.

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Trades

Technical

Customer Service

Sales*

Admin

Tow Truck driver*

Business manager

Stay in Industry Retired Leave


30

6. CERTIFICATION AND TRAINING

In this section we review the results of the employee and employer surveys with respect to support for certification, training needs, training supports provided, barriers to training and preferred modes of training. We find that:

The majority of employers believe certification is important and provide supports to their employees to obtain training.

Technical skills were consistently identified as training needs across sectors and employee groups.

Business managers were the only group who felt that they were lacking skills to do their jobs.

Lack of time for training and availability of training were identified as the primary barriers to training.

Certification

Figure 6-1 Importance of certification to employers, by sector


Employers reported strong support for certification of their employees.

Support for certification was highest among collision repair and mechanical repair and lowest among glass repair and other. This is likely a reflection of the market conditions these businesses operate in. To receive accreditation from ICBC requires that staff have certification and due to concerns about manufacturers’ warranties most customers prefer licensed technicians perform maintenance and repair.

0% 20% 40% 60% 80% 100%

Vehicle dealers

Mechanical repair

Collision repair

Glass repair

Other

Important Somewhat important Not important


31

Formal education requirements

Table 6-2 Recommended level of formal education, by occupation

High School

Trades certification

College diploma

Other

Automotive Service Technician X Driver`s license Motor Vehicle Body Repairer X Driver`s license Painter X Driver`s license Glass Technician X Driver`s license Detailer and other shop staff X Driver`s license Shop supervisor X Estimator/service advisor/customer service representative

X Understanding of technical aspects and repairs

Sales X Driver X Driver`s license (Class

depends on vehicle) Dispatcher X Receptionist X Accountant/bookkeeper X Business manager X Business administration

courses or credential plus experience in the industry

Source: Working in Canada, Service Canada Job Futures Quebec

Recommended formal education requirements vary according to the occupational category. For most positions not requiring a trade certification or specific technical knowledge such as accounting, experience and knowledge of the industry is as important as formal education levels.

Among employees working in trades, approximately 25% of the workforce has less formal education than required15. Those working as Automotive Service Technicians tend to have higher levels of education than those working as Motor Vehicle Body Repairers. This was most apparent in the Vancouver Island/Coast region where 27.7% of Motor Vehicle Body Repairers had education levels below a trades certification. Given ICBC’s accreditation requirements this gap is expected to close.

Among those working in clerical and administrative roles less than 10% do not have the recommended level of formal education.

Sales and service occupations are the group where the largest gap in formal education exists. In the Mainland/Southwest 17% of employees in this group have less than high school while in Northern BC 36% of employees have less than high school. For these occupations, industry knowledge is as important formal education.

15

Statistics Canada, Census 2006, highest level of education obtained.


32

Training needs16

Table 6-3 Employer identified training needs by sector

Vehicle dealers

Mechanical repair

Collision repair

Glass repair

Other

Technical skills X X X X X

Oral communication X X

Critical thinking (assess validity of information)

X X X

Problem solving X X X X

Decision making X X X X

Task planning and organization X X

Work flow coordination X X

Working with others X

Computer usage (keyboarding skills, software)

X X

Digital technology (diagnostic equipment, multimeters, calculators)

X X


Technical skills were consistently identified across all sectors as a training need. Problem solving, decision making and critical thinking were also a need identified in most sectors.

Oral communication was identified as a training need outside the Mainland/Southwest and in glass repair and the other sector.

Critical thinking was identified as more of a need in the Mainland/Southwest than in other regions.

16

A skill was identified as a training need for employers if at least 25% of respondents within a sub-sector identified it as needing to be improved or it was ranked in the top five within a sub-sector. The same criteria was used for employees based on their occupation.


33

Employees, with the exception of Business Managers felt that they were not lacking any job related skills and their training needs are consistent with those identified by employers as shown in Table 6-4.

Table 6-4 Employee identified training needs, by occupation

Trades Technical Sales/ Customer Service

Admin-istrative

Tow Truck driver*

Business manager

Other manage-ment/ admin-istrative

Technical skills X X X X X X

Reading comprehension X

Oral communication X X


X X X X

Problem solving X X X X

Decision making X X

Task planning and organization

X X X

Work flow coordination X X X

Providing guidance and/or direction

X X X

Applying policies and procedures

X X X

Computer usage (keyboard skills, software)

X X X X X X X

Digital technology (diagnostic equipment, multimeters, calculators)

X X X X


* Small sample so results should be interpreted with caution

Those employed in the trades were less likely to identify problem solving and critical thinking as a training need relative to other occupations. Computer usage was also less of a training need for this group than other occupations.

Business managers had the broadest range of identified training needs including both technical and management skills.

Across sectors, those employed by vehicle dealers were the least likely to identify technology or computer usage as training needs but more likely to identify reading and writing. This is consistent with the more diversified nature and size of vehicle dealers which means that there is likely more automation and written communication required.


34

Training Supports

Table 6-5 Employers reporting a training plan and budget, by sector


About half of employers report having a training plan but only one-third report having a training budget.

Mechanical repair shops are the most likely group to have a training plan and budget while glass repair shops are the least likely.

Regionally, businesses in the Mainland/Southwest were the most likely to have a training plan and budget followed by those in the Thompson/Okanagan. Businesses in the Interior are more likely to have a plan and less likely to have a budget than those in the Vancouver Island/Coast region.

Employers perceptions of the impact government funding would have on their ability to provide training was mixed. Almost 76% of mechanical repair shops felt it would improve their ability to provide training while just under half of other sub-sectors felt this way.

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Vehicle dealers

Mechanical repair

Collision repair

Glass repair Other Total


35

Over 90% of employers reported that they provided training incentives. The types of training incentives provided are reported in Table 6-6.

Table 6-6 Share of employers providing training incentives, by type of incentive and

sector

Vehicle dealers

Mechanical repair

Collision repair

Glass repair

Other Total

Pay the full amount of course fees

44.8% 42.9% 57.1% 35.0% 53.8% 57%

Pay for time off to take training 31.0% 26.5% 43.9% 25.0% 51.3% 42%

Raise salary/wage upon completion of training

31.0% 22.4% 25.5% 30.0% 25.6% 30%

Pay travel expenses 24.1% 20.4% 27.6% 10.0% 33.3% 28%

Allow employees to take on new responsibilities or tasks upon completion

13.8% 29.6% 19.4% 15.0% 28.2% 27%

Pay for technical training taken by employees from outside suppliers

10.3% 28.6% 20.4% 10.0% 15.4% 24%

Give employees a promotion upon completion of training

3.4% 5.1% 10.2% 10.0% 10.3% 9%

Pay some share of course fees 6.9% 5.1% 4.1% 5.0% 15.4% 7%

Encourage employees to take technical training but do not pay for it

0.0% 1.0% 2.0% 5.0% 7.7% 3%

Do not provide training incentives

6.9% 0.0% 1.0% 10.0% 2.6% 2%


Employers in the glass repair sector are the least likely to provide training incentives. This may be due to on-the-job training being the primary form of training in the sector and the lack of training available.

Employers in collision repair are the most likely to pay for courses and provide paid time off. This is likely a reflection of ICBC’s accreditation requirements.

Close to one-third of employers provide raises upon completion of training but very few offer promotion.

Barriers to training

Employers identified lack of training availability (29%) and lack of time for workers to participate in training (27%) as the greatest challenges they face in providing training. This was mirrored by the employees who cited lack of time as the biggest barrier to training (27%), followed by lack of availability either in their region (26%) or at a convenient time (24%).

Approximately 19% of employers identified employee resistance to training as a barrier and this was primarily in the mechanical repair and collision repair sectors.


36

Training Modes

Table 6-7 Employee perception of the effectiveness of training modes, by occupation

Trades Technical Customer Service/

Parts

Admin Tow Truck Driver*

Business Manager

Other management/ administrative

Instruction from co-workers

X L X L X X L

On-the-job X X L X X X L

Apprenticeship X X n/a n/a L X n/a

In-house training L L L L X X L

Short course L X X X X

On-site supplier X L L n/a L

Full-time post secondary education

L L n/a n/a L X

e-learning L X L X X

Private training facility

X n/a L X

Continuing Education

L n/a L X

Mobile training L X n/a L n/a

Distance education

X n/a L X n/a


* Small sample so results should be interpreted with caution

X – rated as effective; L- rated as less effective, blank – rated as not effective; n/a – not applicable

How employees perceive the effectiveness of alternative training modes varies by occupation. Those occupations where most of the training is provided through formal education channels tend to rate this method as effective, while those where hands-on-training is the norm tend to rate formal education as less effective.

On-the-job training and instruction from co-workers were the most effective training methods for all occupations.

Formal education such as post-secondary was also perceived as effective by those in occupations where post-secondary is the recommended credential. These employees were less likely to rate instruction from co-workers and on-the-job training as effective.

For those in trades and technical occupations, formal education channels were not considered effective

Like perceptions of effectiveness employees’ preferred modes of training vary based on their occupation.

Those employed in trades and technical occupations prefer on-the-job training, in-house training, short courses and training provided through an education institution.

Those in non-trades occupations identified on-line training as their preferred mode followed by on-the-job training, in-house training and training provided through an education institution.


37

Technological change

Both employers and employees felt that technological change was creating a need for training in the industry. The technologies identified were:

Hybrid technologies

Electric cars

Metal composition

Avoidance technologies

Panel bonding

Electrical and electronic systems and diagnostics

New paint products


38

7. WORKFORCE PROJECTIONS

In this section we review the key determinants of employment in the automotive sector, industry and demographic trends which will affect labour demand and supply in the sector and projections for the sector’s labour demand and supply between 2012 and 2020.

Employment in BC’s automotive sector is closely related to the number of vehicles on the road and population growth as shown in Figure 7-1. In BC, there is one vehicle on the road for every two people aged 15 and over and this relationship has been stable over time.

Figure 7-1 Change in population, licensed passenger vehicles and automotive sector

employment 1999-2011

Source: BC Statistics, ICBC

7.1 AUTOMOTIVE SECTOR TRENDS

Industry trends affecting the BC automotive sector are the same as those affecting the sector in other Canadian jurisdictions. These include:

Increasing age of vehicles. This increase in vehicle age is related to the increasing reliability of vehicles and the tendency to drive fewer kilometres. Between 1990 and

0.0

20.0

40.0

60.0

80.0

100.0

120.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Ind

ex

20

07

=10

0

BC Automotive Sector Employment BC Population Licensed Passenger Vehicles


39

2010 the average age of passenger vehicles in BC rose from 8.25 to 9.6917. Average kilometres driven per vehicle in Canada decreased from 17,000 to 15,336 between 2000 and 200918 driven largely by increases in the price of fuel. These trends have a number of implications for employment in the industry. First, the demand for advanced diagnostic skills is expected to be lower as reliability increases while that for maintenance and minor repairs will grow. Secondly, older vehicles are more likely to have maintenance performed at independent shops19 so demand for small maintenance shops is likely to grow while that for dealership maintenance services is expected to follow the growth in the number of new cars on the road.

More total losses. There is evidence that scrappage rates are increasing in Canada. According to Automotive Industry Association of Canada’s 2012 Outlook scrappage rates have been rising since 200820. This corresponds to increases in the price of used auto parts of around 50%21 which suggests that scrap values are increasing. This trend is negatively impacting the demand for collision repair and this is expected to continue.

Technology. The market for hybrid and electrical vehicles is growing. Between 2007 and 2008 the share of passenger vehicles on the road in BC that were hybrids increased from 0.4% to 1%22. This trend is expected to continue as federal and provincial tax incentive programs continue and United States’ Corporate Average Fuel Economy regulations (“CAFE”) come into effect in 2016. While the CAFE regulations only apply to vehicles sold in the United States, the vehicle selection in Canada mirrors that available in the United States. The increase in prevalence of hybrid and electrical vehicle technologies means Automotive Service Technicians and maintenance staff will require additional training.

Car sharing. A longer term trend that may affect the future growth of the number of vehicles in urban areas is car sharing. This is becoming increasingly popular in metro Vancouver and is available in Victoria and Kelowna. The likely effect of this trend is to reduce the growth rate of vehicles in urban areas which will have a similar impact on the demand for sales, repair and maintenance services in these areas.

While overall employment in the automotive sector in BC is expected to continue to rise as the number of cars on the roads rise, the composition of the workforce is expected to change.

Relatively fewer Automotive Service Technicians with advanced diagnostic skills will likely be needed while demand for installers and maintenance staff will grow.

17

La Coporation des concessionaires d’automobiles du Quebec. Âge moyen des véhicules par province - juillet 2010. (http://www.ccaq.com/fr/la-ccaq/statistiques.statistiques-pour-le-quebec-.php)

18 Natural Resources Canada. Canadian Vehicle Survey 2009 Summary Report. 2011

19 Automotive Industries Association of Canada. 2012 Outlook Study: A Comprehensive Review of the Automotive

Aftermarket Industry in Canada. November 2012.

20 Ibid.

21 Statistics Canada. Table 332-0006 - Wholesale services price index, by North American Industry Classification System (NAICS),

monthly (index, 2008=100)

22 ICBC. Quick Statistics. August 2012.


40

Demand for collision repair services is not expected to grow as long as scrap values remain high which means employment in this sector may decline.

7.2 DEMOGRAPHIC TRENDS

Two demographic trends have implications for the automotive sector.

Increasing urbanization. BC’s population is concentrated in large urban centres. Based on the 2011 Census 67.1% of the population lives in the Lower Mainland, Fraser Valley or Victoria areas and an additional 7.4% of the population lives in the Kelowna or Nanaimo areas. Between 2006 and 2011 90% of growth in BC’s population was in these five areas. This is consistent with overall Canadian growth trends that indicate that while the population has been relatively stable outside urban areas, the proportion of the population in these areas is falling as growth is concentrated in urban areas23. This suggests that outside the southern regions of the province growth in the demand for automotive sector services will be flat and it may become increasingly difficult to fill vacant positions locally.

Aging population. The population of BC is aging. According to the 2011 Census the median age of the population has risen from 40.8 in 2006 to 41.9 and 25% of the working age population is between 45 and 5424. For the first time the number of people 0 to 14 is less than those aged 65. This suggests that there will be increasing demand for workers in all sectors as older workers retire which may lead to increasing competition if the labour supply does not increase due to immigration.

7.3 PROJECTIONS

Workforce projections are based on regional forecasts from the BC Labour Market Scenario Model for the period 2010-2020. This model incorporates statistical data including the labour force survey, population projections and the Census; economic projections from the Ministry of Finance Budget and Fiscal Plan; the nature of major projects in development and coming on-stream during the outlook period; and consultation with industry. The projections presented here were done in 2011 using the most recent data available at the time25 and are based on 3-digit National Occupation Codes (NOC). This is the most detailed level at which the forecasts are differentiated.

The two sources of demand used in the projections are

New jobs – those created by growth due to increased demand in the sector.

Replacement jobs – those created by vacancies due to retirements and workers leaving the sector.

The two sources of supply in the projections are

23

Statistics Canada. Canada’s Rural Population Since 1851: Population and Dwelling Counts. February 2012.

24 BC Statistics, 2011 Census Fast Facts: Toddlers and Teetotallers, May 2012.

25 The key data sources are Labour Force Survey, Census 2006, BC Statistics population estimates and projections,

BC Ministry of Finance Budget and Fiscal Plan 2011/12 to 2013/14, BC Economic Accounts, and BC Major Projects Inventory.


41

New entrants – young people leaving the education system and entering the labour market for the first time

Migration of workers – experienced workers entering the labour market from other sectors, provinces or countries

Regional projections are presented based on development region boundaries. The North Coast, Nechako and Northeast have been grouped into Northern BC and the Cariboo, Kootenay, and Thompson/Okanagan have been grouped into Interior.

Automotive Service Technicians (NOC 732)

This category includes automotive service technicians, truck and bus mechanics, mechanical repairers and motor vehicle body repairers. The forecasts suggest that the tight labour market which exists in all regions of the province for Automotive Service Technicians (“AST”) will persist for the forecast period and this is similar to the forecast for other trades occupations including construction trades. Most openings in the province will be to replace workers who are retiring or leaving the sector and these positions will be filled by a combination of migration and young people entering the workforce for the first time. Regional forecasts are presented below.

Figure 7-2 Forecast workforce gap, Automotive Service Technicians, Mainland/Southwest

2012-2020

Lab

ou

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up

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Surplus equal to 2% of workforce will gradually decline due to increases in demand, increasing numbers of retirements and fewer workers entering the field

After 2016 a persistent shortage of approximately 1% of the workforce is projected

New workers are expected to come from entry into the labour force by young people and migration from other sectors or regions.

Source of Openings Source of Workers

New jobs Replacement New entrants Migration

39.3% 60.7% 48.3% 51.7%

Source: BC Labour Market Scenario Model

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2012 2014 2016 2018 2020


42

Figure 7-3 Forecast workforce gap, Automotive Service Technicians, Vancouver

Island/Coast 2012-2020

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up

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Ga

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Shortage equal to 1% to 2% of the AST workforce is forecast to persist until 2016.

By 2017 the number of AST’s will equal the number of positions.

Slowing growth in demand and increases in workers entering the field are forecast to close the gap.



24.0% 76.0% 52.0% 48.0%


Figure 7-4 Forecast workforce gap, Automotive Service Technicians, Interior, 2012-2020

Lab

ou

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up

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Ga

p

Surplus of 1% is forecast to turn into a shortage of about 1% of the workforce.

Growth in new jobs is forecast to decline so most openings will be due to retirement.

Entry of workers into this field is forecast to be stable.

Most new workers will be new entrants to the labour force.



24.4% 75.6% 62.7% 37.3%


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Figure 7-5 Forecast workforce gap, Automotive Service Technicians, Northern BC, 2012-

2020

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Ga

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Shortage of 2% of the workforce will gradually close as growth in new jobs declines.

Surplus of 2% to 3% is forecast by 2016.

The majority of openings are forecast to be due to replacement.

Most new workers will be young people entering the workforce



35.2% 64.8% 59.6% 40.4%


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0

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2012 2014 2016 2018 2020


44

Retail Salespersons and Sales Clerks (NOC 642)

This category includes rental agents, new and used vehicle salespersons, counter clerks and other customer service staff involved in retail activities. The skills associated with these positions are readily transferable to other industries and the automotive sector will be competing with other industries to attract these workers. The forecasts presented here are for these occupations across industries in the province. A tight labour market will develop primarily due to increases in new jobs. Most new workers will be young workers entering the labour force for the first time.

Figure 7-6 Forecast workforce gap, Retail Salespersons and Clerks, Mainland/Southwest,

2012-2020

Lab

ou

r s

up

ply

Ga

p

Surplus of 2% of the workforce will decline and become a 1% shortage by 2017.

Most openings will be new jobs.

Over half of new workers will be new entrants to the

labour force.



43.7% 56.3% 63.6% 36.4%


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0

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1500

2000

2012 2014 2016 2018 2020


45

Figure 7-7 Forecast workforce gap, Retail Salespersons and Clerks, Vancouver

Island/Coast, 2012-2020

Lab

ou

r s

up

ply

Ga

p

Shortage of 0.7% of workforce will increase until 2014 after which it will decline and disappear by 2017.

Most openings will be to replace retiring workers while new workers will be first time entrants to the labour force.



16.4% 83.6% 72.7% 27.3%


Figure 7-8 Forecast workforce gap, Retail Salespersons and Clerks, Interior, 2012-2020

Lab

ou

r s

up

ply

Ga

p

Small shortage is forecast to begin in 2014 and will persist.

Most openings will be replacement positions.

The primary source of new workers will be first time entrants to the labour force.



21.8% 78.2% 78.0% 22.0%


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Figure 7-9 Forecast workforce gap Retail Salespersons and Clerks, Northern BC, 2012-

2020

Lab

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up

ply

Ga

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Shortage will move to surplus by 2015.

The majority of openings will be replacement positions.

New workers come primarily from new entrants to the labour force.



35.6% 64.4% 82.1% 17.9%


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2012 2014 2016 2018 2020


47

Administrative Positions (NOC 141 and 143)

This category includes general office staff such as receptionists and finance, insurance and related staff. Like sales, these occupations are not unique to the automotive sector and the skills are readily transferable to other industries. Most new positions in these occupations will be to replace workers who are retiring or leave the position. With the exception of the Mainland/Southwest region, the majority of new workers will be young people entering the labour force.

Figure 7-10 Forecast workforce gap, Administrative Positions, Mainland/Southwest, 2012-

2020

Lab

ou

r s

up

ply

Ga

p

Surplus representing 2% of the workforce will gradually decline and turn into a shortage of 11%.

Most new positions will be to replace workers who have retired.

The majority of new workers are forecast to be young workers entering the labour force for the first time.



41.8% 58.2% 54.9% 45.1%


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2012 2014 2016 2018 2020


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Figure 7-11 Forecast workforce gap, Administrative Positions, Vancouver Island/Coast,

2012-2020

Lab

ou

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up

ply

Ga

p

Shortage will increase to 1.7% of the workforce in the near term before disappearing by 2017.

The majority of new positions are expected to be replacement.

Most new workers will be young people entering the

labour force.



21.4% 78.6% 59.0% 41.0%


Figure 7-12 Forecast workforce gap, Administrative Positions, Interior, 2012-2020

Lab

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up

ply

Ga

p

Shortage of approximately 0.8% is forecast by 2014.

New openings will be due to replacement of workers who retire or leave the position.

Most new workers will be young people entering the labour force.



26.4% 73.6% 60.2% 39.8%


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Figure 7-13 Forecast workforce gap, Administrative Positions, Northern BC, 2012-2020

Lab

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Shortage of 1.5% will become a surplus of 1.8% by 2016.

Most new positions will be due to replacement.

New entrants to the labour force will be the primary source of new workers.



35.4% 64.6% 66.5% 33.5%


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2012 2014 2016 2018 2020


50

Transport Truck Drivers (NOC 741)

This category includes transport truck drivers, special purpose drivers of heavy trucks and tow truck drivers. Like administrative and retail sales the skills associated with this occupational grouping are transferable to industries outside the automotive sector so the forecasts here are for the BC labour force as a whole. The labour market for truck drivers is forecast to be tight between 2012 and 2020. Most openings are forecast to be replacement and will be filled by a mix of young workers entering the labour force and migrants from other occupations and regions.

Figure 7-14 Forecast workforce gap, Truck Drivers, Truck Drivers, 2012-2020

Lab

ou

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up

ply

Ga

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Surplus of 2% of the workforce will decline and become a shortage by 2016.

Most openings will be replacement.

New workers will include both migrants and young people entering the workforce for the first time.



34.7% 65.3% 48.6% 51.4%


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2012 2014 2016 2018 2020


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Figure 7-15 Forecast workforce gap, Administrative Positions, Vancouver Island/Coast,

2012-2020

Lab

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up

ply

Ga

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Shortage equal to 1.7% of the workforce will decline and disappear by 2017.

New openings will be replacements with relatively few due to growth in demand.

Slightly more new workers will be migrants than new entrants to the labour force.



16.1% 83.9% 46.6% 53.4%


Figure 7-16 Forecast workforce gap, Truck Drivers, Interior, 2012-2020

Lab

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up

ply

Ga

p

Small shortage (less than 1% of the workforce) will persist

New openings will be replacements with relatively few openings due to growth in demand.

New workers will include both migrants and young people entering the workforce for the first time.



21.4% 78.6% 50.2% 49.8%


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Table 7-17 Forecast workforce gap, Truck Drivers, Northern BC, 2012-2020

Lab

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Shortage of 2% of workforce will disappear and be replaced by a surplus of over 2%.

Most openings will be replacement

Slightly more new workers will be migrants than new entrants to the labour force.



36.3% 63.7% 43.8% 56.2%


Management Occupations

Management positions in the automotive sector are filled by people who have progressed through lower level occupations in the industry. The tight labour market conditions that currently exist for these occupations and the expectation that other occupations will continue to face similar conditions suggests that labour market current conditions for management employees will persist.

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8. SITUATIONAL ASSESSMENT

The primary challenges facing the automotive industry in BC are attraction and recruitment of new employees. The current tight labour market is expected to continue for the foreseeable future which means the industry needs to develop recruitment strategies to ensure adequate supply of new workers are entering the industry. In this section we review the strengths, weaknesses and opportunities for the industry with respect to recruitment and retention.

Strengths

Industry stability. The automotive sector in BC is a mature industry and is less cyclical in nature than industries such as residential construction. This means that there will not be rapid expansion but rather employment growth is expected to continue to follow that of vehicles on the road and population.

Job Security. The stability of the industry means that job security is relatively high.

Availability of local employment opportunities. The industry in BC is primarily a service industry which supports other sectors. As such, local employment opportunities exist in each region meaning that potential employees may not need to move to find employment.

Weaknesses

Wages. Wages in the industry tend to be less than those paid in other industries with high levels of trades occupations as shown in Table 8-1 which compares the wage ranges for selected trade occupation in BC and Alberta. Automotive trades have a wider range than most other trades and median wages that are lower than all other trades except carpenters and plumbers. This suggests that the earnings of automotive trades are less than those in other trades. Compared to their counterparts in Alberta they also earn less. Further evidence of this is found in the $25 median wage reported by Automotive Service Technicians and Motor Vehicle Body Technicians who completed their training between July 1 2009 and June 10, 2010. Those who completed construction trades during the same period have median wages ranging between $28 and $30 per hour26.

26

BC Statistics. 2011 Apprenticeship Student Outcomes Survey Report of Findings.


54

Table 8-1 Wage ranges, selected trade occupations, BC and Alberta

BC Alberta

Low Median High Low Median High

Automotive Service Technician/ Motor Vehicle Body Repairer

$12.75 $25.64 $35.00 $16.00 $25.64 $38.00

Truck Drivers $13.00 $23.00 $31.32 $16.25 $24.00 $35.00

Carpenter $14.50 $23.00 $31.95 $15.00 $25.00 $35.00

Electricians $15.00 $26.00 $35.00 $18.00 $31.00 $42.00

Plumber $16.00 $24.68 $33.00 $17.00 $26.00 $40.00

Pipefitters $16.83 $27.50 $39.00 $20.00 $30.00 $43.70

Heavy Equipment Operator $18.00 $26.75 $32.83 $17.00 $26.00 $35.00

Other construction trades, installers, repairers and servicers

$18.00 $30.00 $36.00 $22.00 $32.00 $45.00

Heavy Equipment Mechanic $20.52 $29.77 $38.00 $20.00 $31.00 $42.00

Source: Statistics Canada Labour Force Survey

Career path/advancement. The industry is primarily made up of small shops employing less than 10 people which makes it difficult to provide career advancement opportunities within an organization. While employers reported providing a career path, employees expressed dissatisfaction with what was provided.

Physical nature of work and health issues. Automotive trades require physical strength and stamina and this may be a factor in the decision of older workers to leave these occupations. The physical demands and exposure to chemicals were cited as contributing factors by employees considering leaving the industry and those unwilling to recommend their occupation.

Opportunities

Succession planning. This can be used to encourage retention and provide career opportunities for employees.

Develop a system for matching apprentices with employers. Currently students completing a foundation program receive limited support in finding potential employers with which to do an apprenticeship. Developing a system of matching foundation graduates with employers will facilitate the matching process and may improve placement rates.

Develop a job board for the automotive sector. Currently employers use an assortment of mediums and word-of-mouth to advertise vacancies. The most common methods were word-of-mouth (76%) and referral by friends, colleagues or employees (74%). Creation of a centralized job board would expand the reach of postings and has the potential to provide a larger pool of applicants.

Develop career paths. Employees reported the primary reasons they chose their occupation were opportunity to use their skills and knowledge (32%) and familial connections (20%). A family connection was strongest for those employed in the trades or management. Among those in occupations that require limited training and no certification such as installers or tow truck drivers availability of a job was a primary consideration. Those in sales, administration and management positions were more


55

likely to cite opportunities for career advancement as a primary consideration. These relationships can be leveraged to build career paths which illustrate the opportunities within the industry for potential employees. This may encourage people with a family connection to stay in the industry and will make the sector more attractive to those who do not have a family connection.

Job security and industry stability can be used to compensate for lower wages. Industries such as mining pay higher wages to make up for dangers, health effects and instability in the sector. Wages are lower in the automotive sector than in resource extraction industries but job security is relatively high meaning that earnings may be higher over the long term. This can be used as part of a recruitment program directed at students in trades.

Diversify the workforce. First Nations, women, immigrants and visible minorities are under-represented in the automotive sector. These groups represent the fastest growing sectors of the labour force so marketing of the industry targeted to these groups can be used as part of a strategy to address recruitment issues.

Facilitate training through alternative delivery mechanisms. Lack of time and availability of training were cited as the primary barriers to engaging in training. Options to overcome this include developing short courses delivered online which employees could take during slow periods or having temporary replacement staff come in so employees can engage in training. Where regional availability is the primary problem, funding mechanisms can be developed to either provide training in the area or subsidize travel costs for employees to receive the training in other regions.

Encourage knowledge transfer. Many older technicians find the physical demands of mechanical and collision repair are too strenuous. These technicians can be used to provide mentoring/training to younger technicians in a number of ways including:

o Delivery of short courses through an online format. o Working casually or part-time to allow full-time technicians to engage in training.


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9. CONCLUSIONS

The BC automotive sector is experiencing a tight labour market which means that it may be difficult to find suitable staff, employers can expect recruitment to take extended periods of time and positions may go unfilled. Regions outside the Mainland/Southwest report greater difficulty in recruiting staff and the most difficult positions to recruit are skilled trades and service advisors/estimators. These conditions are expected to persist going forward and are consistent with what is expected in other industries that employ a large number of trades such as construction. This means that competition from other industries will continue to pose a challenge to employers in the automotive sector.

Employers report high levels of success in retaining employees across occupations; however, 25% of employers are intending to leave the industry over the next five years and very few have a succession plan. Almost half of those intending to leave the industry are from mechanical repair and glass repair which are sub-sectors characterized by small shops. This suggests there is a risk that the size of the sector and consequently employment may shrink if those leaving are unable to find buyers for their businesses.

Training also presents a number of challenges for the sector, particularly for tradespeople, service advisors/estimators and business managers. Changing vehicle technologies mean that technicians must engage in ongoing technical training to keep current and service advisors need to regularly update their knowledge. For business managers, training needs included both technical and management skills. The most significant barriers to engaging in training were lack of availability and lack of time. This suggests that there is a need for alternative methods of delivering training in the sector.

Recommendations

The automotive sector in BC is largely composed of small businesses employing fewer than 10 people. This means that individual businesses are unlikely to be able to dedicate resources to the development of human resource strategies and training plans. To facilitate this we recommend the sector:

Develop a knowledge base of best practices where employers can share the strategies that they have used around recruitment, retention and training as well as the outcomes. Shared learning will assist in the transfer of knowledge and development of effective recruitment and retention strategies.

Develop tools for matching employers and employees including apprentices.

Develop career paths within the industry and communicate these both within the industry and to potential employees.

Develop succession planning supports for small businesses.

Develop effective online tools to facilitate technical training and management training.

Facilitate knowledge transfer from experienced technicians to apprentices by providing options for older technicians as either mentors or as part-time casual employees providing relief while full-time technicians engage in training.

Expand the diversity of the workforce by developing outreach programs targeting women, First Nations and immigrants.

Labour Market Information Research Report: BC Automotive Industry

57 57

APPENDIX A – DESCRIPTION OF SURVEY SAMPLE

Regional boundaries are based on the BC’s development regions. The Interior includes the Northeast, North Coast, Nechako, Cariboo and Kootenay development regions.

Sector definitions are as follows:

Vehicle dealers – new and used car dealers, motorcycle dealers

Mechanical repair – mechanical repair shops, quick lube service

Collision repair – collision repair shops

Glass repair – glass repair shops

Other – Towing, automotive rental and leasing; parts and accessories and automotive recycling and dismantling.

Occupational groupings are as follows:

Trades – Automotive Service Technicians, Motor Vehicle Body Repairers, Glass Technicians and Painters

Technical – Installers and servicers

Customer Service – Estimator, Service Advisor, Parts and Customer Service Representative

Sales – Retail sales (including vehicle sales), Outside sales and Account Managers

Administrative – Dispatcher, Reception, bookkeeper

Tow Truck Driver – Tow Truck Driver

Business Manager – Shop or Business Manager

Other management Administrative


58 58

Employer survey distribution of sample by region and business type


Mainland/ Southwest

Thompson/ Okanagan

Interior Unknown Total

Vehicle dealers 7% 34% 7% 10% 41% 12% Mechanical repair 16% 55% 7% 4% 18% 23%

Collision repair 12% 29% 12% 9% 38% 40% Glass repair 10% 5% 25% 10% 50% 8% Other 15% 41% 3% 10% 31% 16%

Total 13% 35% 10% 8% 34% 100%

Sample size =243

Employee survey distribution of sample by region and occupation


Mainland/ Southwest

Thompson/ Okanagan

Interior Unknown Total

Trades 12.0% 47.4% 38.5% 8.7% 31.3% 30.0%

Technical 4.0% 2.6% 34.6% 17.4% 31.8% 13.8%

Customer Service 12.0% 21.1% 11.5% 0.0% 26.3% 11.9%

Sales 4.0% 2.6% 0.0% 13.0% 16.7% 3.8%

Administrative 24.0% 5.3% 7.7% 21.7% 21.1% 11.9%

Tow Truck Driver 20.0% 2.6% 0.0% 0.0% 14.3% 4.4%

Business Manager 12.0% 7.9% 7.7% 13.0% 15.4% 8.1%

Other Management Administrative

12.0% 10.5% 0.0% 26.1% 27.8% 11.3%

Sample size = 160

59


APPENDIX B – TRAINING INVENTORY BY REGION

Table 9-1 Automotive training at public institutions in BC, Mainland/Southwest

BCIT

(Burnaby)

Kwantlen Poly-technic

(Richmond)

University of the Fraser Valley

(Chilliwack)

Vancouver Community College

(Vancouver)

Vancouver Island University

(Nanaimo)

Automotive Transmission Service Tech

No No No No No

Automotive Glass Technician No No No Apprenticeship No

Automotive machinist No No No No No

Automotive Painter No No No Apprenticeship No

Automotive Refinishing Prep Foundation No Foundation Foundation, Apprenticeship and High School

No

Automotive Service Technician Foundation, Apprenticeship, Co-op and Ford ASSET

Foundation, Apprenticeship and ACE IT

Foundation and Apprenticeship

Apprentice/e-pprentice, Foundation, 2 year Diploma

Apprenticeship

Logistics and distribution 2 No No No No No

Logistics and distribution 3 No No No No No

Motor Vehicle Body Repairer Foundation No No High School, Apprentice/e-prentice, Foundation

No

Motorcycle Mechanic Apprenticeship and Foundation

No No No No

Parts and Warehousing person 1 No Foundation No No No

Partsperson 2 No No No No No

Partsperson 3 No No No No No

Recreation Vehicle Service Technician

No No No No No

Source: MNP Research

http://www.kwantlen.bc.ca/trades.html

http://www.kwantlen.bc.ca/trades.html

http://www.ufv.ca/Trades.htm

http://www.ufv.ca/Trades.htm

http://www.vcc.ca/index.cfm

http://www.vcc.ca/index.cfm

http://www.viu.ca/

http://www.viu.ca/

60


Table 9-2 Automotive training at public institutions in BC, Vancouver Island/Coast

Camosun College

(Victoria)

North Island College

(Campbell River)

Vancouver Island University

(Nanaimo)

Automotive Transmission Service Tech No No No

Automotive Glass Technician No No No

Automotive machinist No No No

Automotive Painter No No No

Automotive Refinishing Prep No No No

Automotive Service Technician Foundation and Apprenticeship Foundation Apprenticeship

Logistics and distribution 2 No No No

Logistics and distribution 3 No No No

Motor Vehicle Body Repairer No No No

Motorcycle Mechanic No No No

Parts and Warehousing person 1 No No No

Partsperson 2 No No No

Partsperson 3 No No No

Recreation Vehicle Service Technician No No No

Source: MNP Research

http://camosun.ca/

http://www.nic.bc.ca/

http://www.viu.ca/

61


Table 9-3 Automotive training at public institutions in BC, Interior and Northern BC

College of New

Caledonia (Prince George)

College of the Rockies

(Cranbrook)

Northern Lights College

(Dawson Creek)

Northwest Community

College

(Terrace)

Okanagan College

(Kelowna)

Selkirk College

(Grand Forks)*

Thomson Rivers

University

(Kamloops)

Automotive Transmission Service Tech

No No No No No No No

Automotive Glass Technician No No No No No No Glazier

Automotive machinist No No No No No No No

Automotive Painter No No No No Foundation and Apprenticeship

No No

Automotive Refinishing Prep No No No No Foundation and Apprenticeship

No No

Automotive Service Technician Foundation and Apprenticeship


Foundation (FSJ/DC) and Apprenticeship



No Apprenticeship

Logistics and distribution 2 No No No No No No No

Logistics and distribution 3 No No No No No No No

Motor Vehicle Body Repairer Foundation No No No Foundation and Apprenticeship

No No

Motorcycle Mechanic No No No No No No No

Parts and Warehousing person 1

No No No No No No Apprenticeship

Partsperson 2 No No No No No No Apprenticeship

Partsperson 3 No No No No No No Apprenticeship

Recreation Vehicle Service Technician

No No No No Foundation and Apprenticeship

No No

Source: MNP research

http://www.cotr.bc.ca/

http://www.cotr.bc.ca/

http://www.nlc.bc.ca/Home.aspx

http://www.nlc.bc.ca/Home.aspx

http://www.nwcc.bc.ca/About/index.cfm



http://www.okanagan.bc.ca/

http://www.okanagan.bc.ca/

http://selkirk.ca/

http://selkirk.ca/

http://www.tru.ca/trades.html



62


Other training facilities

ICBC Training Facility – offers a selection of courses for the Collision repair industry which support the ICBC accreditation program.

Automotive Service Training Centre (Surrey, BC) – offers pre-apprenticeship training for motor vehicle body repairers, automotive service technicians and refinishing prep technicians. Other courses include automotive diesel technician, automotive service operations, auto body estimating, automotive service consultant, auto parts and warehousing, dispatching and transportation, sales and leasing and financing and leasing.


63

APPENDIX C – FUNDING SOURCES

Employer funding sources

Program Effective Dates Description Eligibility Limits Source

Apprenticeship Job Creation Tax Credit

May 1, 2006 – ongoing

Employer receives 10% of wages and salaries during the first two years of an apprenticeship

Red Seal programs Up to $2,000 per year

Government of Canada

Basic Training Tax Credit

January 1 2007 – December 31, 2014

Employer receives up to 20% of salary or wages paid to an apprentice during the first 24 months of the apprenticeship

Non-red seal apprenticeships Maximum is $4, 000 per year

BC government

Completion Tax Credit


Employer receives 15% of salary or wages paid to an apprentice who completes level 3 or above

Non-Red Seal and Red Seal Programs Up to $2,500 for level 3

Up to $3,000 for level 4 or level 5

BC government

Enhanced tax credit (basic)


Employer receives 50% of basic tax credit

Employers of First Nations and persons with disabilities who are eligible for the basic training tax credit, the completion tax credit or the federal apprenticeship job creation tax credit.

Up to $2,000

(Up to $6,000 in total)

BC government

Enhanced tax credit (Level 3)


Employer receives 50% of completion tax credit for level 3.

Up to $1,250


BC government

Enhanced tax credit (level 4 or 5)


Employer receives 50% of completion tax credit for level 4 or 5.

Up to $1,500


BC government

Source: Canada Revenue Agency, Province of British Columbia


64

Employee Funding

Program Description Eligibility Limits Source

Apprenticeship Incentive Grant

Apprentices can receive $1,000 per year taxable cash grant

Completion of first or second level of a Red Seal trade

$2,000 per person per program, maximum of two programs


Apprenticeship Incentive Grant

Apprentices can receive $2,000 taxable cash grant

Completion of apprenticeship training and have received journeyperson certification

Certification received on or after January 1, 2009


Basic tax credit Apprentices receive a tax credit. Eligible in the year level 1 or level 2 is completed of a BC recognized non-Red Seal Program.

$1,000 BC government

Completion tax credit

Apprentices receive a tax credit upon completion of level 3 or 4

Red Seal and non-Red Seal programs $2,000 credit for level 3

$2,500 credit for level 4 or 5.

BC government

Enhanced tax credit Apprentices receive an additional tax credit over and above other tax credits.

First Nations of persons with disabilities who received a federal apprenticeship incentive grant.

$1,500 for completion of level 1 or 2 of a non-Red Seal program

$500 for completion of level 1 or 2 of a Red Seal program

$3,000 for completion of level 3

$3,750 for completion of level 4 or above

BC government

Canada Student Loans and Grants

Student loans and grants are provided based on assessed financial need and are repayable upon completion of program. Grants do not need to be repaid.

Foundation, diploma or certificate programs which run 12 weeks in a 15 week period and is offered through a designation post-secondary institution.

Up to $320 per week of full-time study

Governments of Canada and BC


65

Program Description Eligibility Limits Source

Secondary student apprenticeship scholarship

Scholarship for apprentices who began their training in high school

Youth apprentices or trainees registered with the ITA prior to graduation who

Graduated with a C+ or better in all grade 12 numbered courses

Reported 900 or more hours to the ITA within six months of graduation

Completed all four SSA courses within three months of graduation

$1,000 BC government

Employment Program of BC

Program to assist unemployed individuals find sustainable employment.

Apprentices who meet Employment Insurance eligibility

Cost of basic expenses required to obtain employment.

BC government

Source: Canada Revenue Agency, Province of British Columbia


66

APPENDIX D – SELECTED OCCUPATIONAL PROFILES

Occupational profiles are based on material gathered from Working in Canada27 and Human Resource and Skills Development Canada’s essential skills profiles.

AUTOMOTIVE SERVICE TECHNICIAN (NOC 7321)

27

http://www.workingincanada.gc.ca/home-eng.do

Required Education:The recommended education, or a desired level of skill or knowledge, for

apprentices entering this occupation is Grade 12 or equivalent including

English 12, Apprenticeship and Workplace Math, or Trade Mathematics 11

and Applied Physics, or Science and Technology 11.

Summary: Automotive Service Technicians examine, test and repair the parts and systems on cars and light trucks. Their work

also involves reassembling and testing repaired items against manufacturers' standards and performing preventative maintenanc e

such as wheel alignments, oil changes and tune-ups. They may be employed by automotive repair shops, dealerships, automotive

specialty repair shops, and motor vehicle body repair companies.

Certification / Pre-requisites:

• Nationally designated trade under the Inter-provincial Red Seal program

• Completion of an employer-sponsored apprenticeship program or

challenging the certif ication (for individuals who have extensive

experience working in the occupation).

• Youth can begin the apprenticeship progress while in high school

through ACE IT or Secondary School Apprenticeship (SSA) programs.

• Individuals who do not have required work experience or employer

sponsorship may enrol in a Foundation program directly with the training

provider.

Required Competencies (personal attributes, skills and knowledge):

• Good hand-eye coordination

• Mechanical aptitude

• Time management skills

• Logical thinking and decision making skills

• Communication skills

• Computer skills

• Ability to continue learning as technology

advances

• Driving skills and a valid driver’s licence

Wages: $45,000 - $70,000 per year ($12.75 – $35 per hour)

Physical requirements:

• Must be able to lif t heavy weights

• Requires ability to move in, around and under

vehicles

• Senses of sight, sound, smell and touch are

important


67

MOTOR VEHICLE BODY REPAIRERS (NOC 7322)

Required Education:The recommended education, or a desired level of skill or knowledge,

for apprentices entering this occupation The required education level

for individuals entering this trade occupation is Grade 12 or

equivalent including English 12, Apprenticeship and Workplace Math,

or Trade Mathematics 11 and Applied Physics, or Science and

Technology 11.

Summary: Motor vehicle body repairers repair and replace damaged vehicle body parts and interior f inishings; repaint body

surfaces; and may replace automotive glass. They may be employed in dealerships, collision repair shops and automobile apprai sal

centres.


• Nationally designated trade under the Inter-provincial Red Seal

program

• Completion of an employer-sponsored apprenticeship program or

challenging the certif ication (for individuals who have extensive

experience working in the occupation).


• Good knowledge of autobody repair techniques

• Up-to-date on technological developments

• Attention to detail, colour sense, organization

• Good customer service skills

• Ability to analyze and solve problems

• Ability to work in a noisy and dirty setting, strenuous

physical ef fort, uncomfortable positions, dust and

paint allergies, etc

Wages: $40,000 – $56,0000 per year ($16.00-$31.00 per hour)


• Must be able to lif t heavy weights

• Requires ability to move in, around and under

vehicles

•Good sense of sight, hearing and feel and good

dexterity


68

BUSINESS MANAGER (NOC 0621)

Required Education:• Completion of secondary school is

required.

• A university degree or college

diploma in business administration

may be required.

Summary: Business Managers plan, organize, direct, control and evaluate the operations of repair and maintenance

shops/garages or dealership’s repair departments. They supervise a team of technicians, or other staf f in the repair department or

organization and are responsible for managing work load, inventory, and client service.


• Several years of related industry

experience at increasing levels of

responsibility are usually required


• Oral communications skills

• Thinking skills (problem solving, critical thinking, decision making)

• Prof iciency in computer use (i.e. Word processing, databases, spreadsheets etc)

• Document comprehension and use (i.e. information f rom automotive

manufacturers’ reports and bulletins, graphs, lists, tables, blueprints, schematics,

drawings, signs, labels etc.)

• Numerical acumen, including money math, scheduling or budgeting and

accounting math, measurement and calculation and numerical estimation

Wages: unavailable


• Must be able to lif t lif t, carry, and use heavy parts and equipment

• Limb co-ordination to perform activities such as answering the phone, typing in

information on the computer etc.


69

ACCOUNTING AND RELATED CLERKS (NOC 1431)

Required Education:• Completion of secondary school is usually

required.

• Completion of college or other courses certif ied by

the Certif ied General Accountants Association of

Canada, Canadian Securities Institute or Canadian

Bookkeepers Association may be required.

Summary: Accounting and related clerks calculate, prepare and process bills, invoices, accounts payable and receivable, budgets

and other f inancial records according to established procedures. They are employed throughout automotive sector.


• Some accounting clerks must be bondable.


• Technical knowledge including the use of databases,

spreadsheets, sof tware etc

• Good numeric acumen (i.e. identifying transaction errors and

reconcile accounts etc)

• Familiarity and competency with accounting concepts and the

main accounting sof tware programs

• Good organizational skills, attention to detail, problem-solving

skills, communication skills

• Ability to work on a team

• Good writing skills and document use

• Ability to learn continuously (i.e. keep current with changes to

accounting sof tware, Canada Revenue Agency guidelines and

generally accepted accounting principles)

Wages: $12.28 - $27.00 per hourPhysical requirements:

• N/A


70

TRUCK DRIVERS (NOC 7411)

Required Education:• Candidates can work in this occupation without any

specif ic training

• Depending on the situation, employers require a high

school diploma, and knowledge of or training in

mechanics

• Many employers provide on-the-job training

Summary: Truck drivers operate heavy trucks to transport goods and materials over urban, interurban, provincial and international

routes. They may also act as delivery drivers for parts, tools or drive vehicles between dealerships. In the automotive sector they are

employed by towing companies, automotive recyclers, dealerships, repair shops and parts and accessory stores


• Valid driver’s license of the appropriate class for the

vehicles driven

• Excellent driving record


• Essential skills include reading, writing, numeracy, thinking and

communication skills

• Occupational safety and accident prevention

• Load balancing and occasionally computers

• Customer relations

• Patience, maturity, self-reliance, resourcefulness, prudence and

resistance to fatigue and stress are the other desired qualities

Wages: $13.00 – $31.32 per hour

Physical requirements:• Must be able to lif t heavy weights

• Good vision and hearing

71


RETAIL SALES (NOC 6421)

Required Education:• High school completion

• Most employers provide on-the-job training

Summary: Sales people rent sell or lease tools, parts, vehicles and equipment directly to consumers.


• None but knowledge of the industry is an asset


• Essential skills include reading, writing, numeracy, thinking and

communication skills

• Review and completion of order forms and delivery information

• Customer relations

• Digital technology and computer usage

• Working with others

• Continuous learning of new products and features

Wages: $10.25 – $22.00 per hour

Physical requirements: N/A

72


APPENDIX E SURVEY QUESTIONNAIRES

Page | 1

Automotive Retailers Association – Employer Survey

ABOUT THE SURVEY The survey is being conducted by MNP LLP (“MNP”) on behalf of the BC Automotive Sector and the Automotive Retailers Association (“ARA”). The survey is part of a comprehensive analysis of the labour market for the automotive sector and the results will be used to develop strategies to support the recruitment and retention of skilled labour in the Automotive Sector. Your participation is voluntary and all information collected will be treated as confidential. All completed surveys received by MNP prior to January 28, 2013, will be entered into a draw for a chance to win one of three iPODs. A representative from MNP will contact you if your name has been drawn. About MNP MNP is one of the largest chartered accountancy and consulting firms in Canada, providing client-focused accounting, taxation and consulting advice. National in scope and local in focus, MNP has proudly served individuals and public and private companies for more than 65 years. For more information, visit www.mnp.ca

INSTRUCTIONS If your business has multiple locations, please complete one survey for each location. You have three options for completing this survey: 1. Online

Go to (https://www.surveymonkey.com/s/ARA_Employer_Survey) If you are completing the survey online, the information you input enters our database as soon as you enter it. If you need to change your response before completing the survey use the prompts (prev) to go back to the response you need to change. The survey should take approximately 20-30 minutes to complete.

2. Paper Complete the attached survey and FAX it to 604-685-8594 ATTN: Automotive Survey OR seal it in an envelope marked confidential and mail it to: Automotive Sector Survey c/o MNP 2300, 1055 Dunsmuir St Vancouver, BC V7X 1J1

3. Telephone Call 1-877-688-8408 or email [email protected] to arrange a time to complete the survey

To make completion easier, we suggest that you take the time to gather your data and thoughts on the questions and then complete the survey. All completed surveys received by MNP prior to January 28, 2013 will be entered into a draw for a chance to win one of three iPODs. A representative from MNP will contact you if your name has been drawn.

http://www.mnp.ca/about

https://www.surveymonkey.com/s/ARA_Employer_Survey

mailto:[email protected]

Page | 2


ORGANIZATIONAL PROFILE 1. Which of the following describes the main activity of your business? Please check all that apply

Franchise/New car dealer

Used car dealer

Recreational vehicle dealer

Motorcycle dealer

Automotive mechanical repair

Quick lube service

Body and collision repair

Glass repair

Parts and accessories wholesale and distribution

Automotive recycling and dismantling

Towing


Retail trade including department and warehouse stores

Other (please specify: ______________________________)

2. Which of the following describes your type of organization ownership?

Sole Proprietorship

Partnership

Corporation

Franchise

Other (please specify: _________________________________)

3. How many locations does your business have?

____________ Number

4. In what year was your business established?

____________ Year

5. Over the last 12 months, what were the gross revenues for your location’s business?

Under $250,000

$250,000 to $499,999

$500,000 to $999,999

$1,000,000 to $1,999,999

$2,000,000 and over

6. Which of the following best describes your expectation for your business over the next 12 months?

Revenues will decrease

Revenues will be similar to the previous 12 months

Revenues will increase moderately

Revenues will increase significantly

Page | 3


7. How many people (including yourself) are employed in your business?

1

2-4

5-9

10-19

20-49

49 or more

8. How many employees do you currently have for each of the positions below? PLEASE INCLUDE OWNERS ONLY ON THE OWNER LINE. Please record EACH EMPLOYEE IN ONLY ONE POSITION. If an individual performs multiple duties, please count the individual in the area where they spend the largest amount of time.

Position # Full-time (>30

hours per week)

# Part-time (<30

hours per week) # Male # Female

Automotive service technician

Automotive mechanical installers and

servicers

Vehicle body repairers/bodyman

Technician

Painter

Glass technician

Recreation vehicle service technician

Shop supervisor

Detailer

Other shop floor staff

Estimator/service advisor/customer

service representative

Partsperson/warehousing

Parts delivery driver

Retail salesperson (including vehicle

sales)

Outside/wholesale salesperson

Automotive recycler/dismantler

Tow truck driver

Page | 4


Position # Full-time (>30

hours per week)

# Part-time (<30

hours per week) # Male # Female

Dispatcher

Receptionist

Fleet manager

Accountant/bookkeeper

Account manager

Other management/administrative

Store/business manager

Owner

Apprentice

9. For each position where you currently have employees, please indicate how many of your

employees have the following qualifications.

Position Apprentices Journeyperson Other


Automotive mechanical installers and servicers

Vehicle body repairers/bodyman Technician

Painter

Glass technician


Shop supervisor



10. For each position where you currently have employees, please indicate how employees are

paid.

Position Flat rate by the

job

By the number of hours worked

Salary Commission Other


Page | 5


Position Flat rate by the

job


Salary Commission Other

Automotive mechanical installers and

servicers


Painter

Glass technician


Shop supervisor

Detailer


Estimator/service advisor/customer service

representative



Retail salesperson (including vehicle sales)



Tow truck driver

Dispatcher

Receptionist

Fleet manager


Account manager



Owner

Apprentice

Page | 6


RECRUITMENT 11. Which of the following recruitment strategies does your business use? Please select all that

apply

Word of Mouth

Referral by friends, business colleagues and employees

Postsecondary institutions/school campus recruiting

Career fairs

Newspaper advertising

Websites (i.e. employment and labour internet postings)

Industry, Trade and Professional Associations

Other (please specify: _________________________________)

12. Which occupations/positions have you been recruiting in the past 24 months? Please select all that apply.




Painter

Glass technician


Shop supervisor

Detailer


Estimator/service advisor/customer service representative






Tow truck driver

Dispatcher

Receptionist

Fleet manager


Account manager



Apprentice (please specify position _____________________________)

13. On a scale of 1 to 5, where 1 is not at all difficult, 3 is somewhat difficult, and 5 is very difficult,

how difficult has it been for you to recruit the employees necessary to successfully operate your business in the past 24 months?

1 – Not at all difficult

2 3 – Somewhat

difficult 4

5 – Very difficult

N/A

Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

14. Which occupations/positions have been particularly difficult for you to recruit? Please select

up to three occupations/positions.




Painter

Glass technician


Shop supervisor

Page | 7


Detailer








Tow truck driver

Dispatcher

Receptionist

Fleet manager


Account manager




15. Which of the following do you believe are the most significant barriers to recruiting employees

at your business? Please select up to three barriers.

Pay

Benefits

Hours of work

Working conditions

Job security

Cost of tools

Competition from within the automotive industry

Competition from other industries

Poor image of the sector

Lack of skills related to the industry

Lack of training available in the area

Unwillingness of qualified workers to move to the region

Industry wide shortage of workers with necessary skills

Other (please specify _____________________________________________________) 16. Which occupations/positions do you anticipate will be challenging to recruit in the future?

Please select up to three occupations/positions that you anticipate being difficult to recruit in the future.




Painter

Glass technician


Shop supervisor

Detailer








Tow truck driver

Dispatcher

Receptionist

Fleet manager


Account manager




17. What are the reasons you expect these occupations to be difficult to recruit for? Please select

all that apply.

Page | 8


Aging population

Too few people entering the industry

Lack of suitable training in the occupation

Competition from within the automotive industry

Competition from outside the automotive industry

Unwillingness of qualified workers to relocate to the region

Changing technology

Other (please specify _________________________________)

RETENTION Please use a scale of 1 to 5, where 1 is not at all successful, 3 is somewhat successful and 5 is very successful to answer the following three questions. 18. How successful has your organization been in retaining journeypersons?

1 – Not at all successful

2 3 –

Somewhat successful

4 5 – Very

successful N/A

Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

19. How successful has your organization been in retaining apprentices?


2 3 –

Somewhat successful

4 5 – Very

successful N/A

Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

20. How successful has your organization been in retaining other employees?


2 3 –

Somewhat successful

4 5 – Very

successful N/A

Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

21. Which occupations/positions have been particularly difficult for you to retain? Please select up

to three occupations/positions that have been difficult to retain.




Painter

Page | 9


Glass technician


Shop supervisor

Detailer








Tow truck driver

Dispatcher

Receptionist

Fleet manager


Account manager




22. Which of the following do you believe are the most significant barriers to retaining employees at your business? Please select up to three barriers.

Pay

Benefits

Hours of work

Working conditions

Poorly equipped for the work place

Lack of career growth opportunities

Lack of training opportunities

Lack of mentoring

Shortage of work

Poor work performance

Additional training required

Do not want to stay in the region

Other (please specify _____________________________________________)

None

TRAINING 23. Does your organization have a training plan?

Yes

No

Don’t Know

24. Does your organization have a training budget?

Yes

No

Don’t Know 25. Which of the following incentives do you provide to your employees? Please check all that

apply

Pay for time off to take training

Pay the full amount of course fees

Pay some share of course fees

Page | 10


Pay travel expenses

Give employees a promotion upon completion of training

Raise salary/wage upon completion of training

Pay for technical training taken by employees from outside sources

Encourage employees to take technical training but do not pay for it

Allow employees to take on new responsibilities or tasks upon completion of training

Other (please specify ____________________________________________)

Do not provide training incentives

Don’t know

26. Which, of the following does your organization provide to encourage or support development of its employees? Please check all that apply

Provides a career path

Provides career planning

Provides on-the-job training

Provides mentoring for newer workers

Provides formal technical training directly through the company

Pays for technical training taken by employees from outside sources

None of the above

Other (please specify ____________________________________________)

Don’t know

27. What types of skills does your staff need to improve? Please select the three skills your staff need the most improvement in.

Technical skills

Numerical calculations

Measurement

Reading comprehension

Writing

Oral communication


Problem solving

Decision making


Work flow coordination



Working with others


Digital technology (diagnostic equipment, multimeters, calculators, internet etc)

Other (please specify ________________________________________________)

Don’t know 28. What do you believe are the greatest training challenges at your location? Please select up to

three challenges.

Lack of training programs in the area

No budget to provide training

Lack of time for employees to participate in training

Page | 11


Lack of access to online delivery of training material

Employee resistance to training

No method for assessing training needs

Other (please specify _______________________________________________)

None

29. Does your organization provide support for staff to receive formal certification in their

occupation.

Yes

No

Don’t Know Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

30. On a scale of 1 to 5, where 1 is very little extent, 3 is some extent, and 5 very great extent, to

what extent would the availability of government funding to support employee training improve your organization’s ability to provide staff training?

1 – Very little extent

2 3 – Some

extent 4

5 – Very great extent

N/A

Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Please use a scale of 1 to 5, where 1 is strongly disagree, 3 is somewhat agree and 5 is strongly agree to answer the following two questions. 31. It is important to me and my organization that my staff has formal certification for their

position.

1 – Strongly disagree

2 3 – Somewhat

agree 4

5 – Strongly agree

N/A

Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

32. There is a major need for training and skills upgrading as a result of technological change in

my industry.

1 – Strongly disagree

2 3 – Somewhat

agree 4

5 – Strongly agree

N/A

Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Page | 12


SUCCESSION PLANNING Succession planning is a process which identifies how a business will be transferred or sold to new management. 33. Do you plan to retire or sell your business in the next 5 years?

Yes

No

Don’t Know 34. Do you have a succession plan in place?

Yes

No

Don’t Know If you answered yes to Question 34, please describe your succession plan. ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

DEMOGRAPHICS

35. Are you:

Male

Female

36. What age group do you fall into:

15 to 24 years

25 to 54 years

55 to 64 years

65 years or older

37. Which of the following associations are you a member of? Please check all that apply

Confidentiality

MNP is committed to maintaining the security, confidentiality and accuracy of the personal information we collect to provide the highest level of service to our clients. Our privacy policy adheres to both the guidelines and principals underlying the Personal Information Protection and Electronic Documents Act, as well as our own commitment to ensuring that clients are comfortable providing us with personal information. The MNP Privacy Policy can be viewed at mnp.ca.

MNP is acting as an independent third party in this study. The results will be reported collectively and in aggregate with no ability to identify individual respondents or businesses. All information provided to MNP, including completed surveys, will be used only for the purpose of this study. Individual survey responses will not be shared with project partners, and will be retained by MNP only until the final report has been accepted by the Steering Committee. Upon acceptance, all information will be destroyed.

By completing this survey you are consenting to the collection of personal information by MNP. This information will be used only for the purposes of this study and will not be disclosed to anyone, including study partners, for any reason without your further prior consent.

Page | 13


Automotive Retailers Association (ARA)

New Car Dealers Association

BC Automobile Association (BCAA)

Chamber of Commerce

Canadian Federation of Independent Business (CFIB)

Other (Please specify ___________________________)

RECOMMENDATIONS 38. To improve participation, recruitment and retention, in BC’s automotive industry, what actions

would you recommend be undertaken by: a. The BC Automotive Industry?

b. BC Employers?

c. The Provincial Government?

39. Do you have any final comments or recommendations?

40. If we have any further questions, may we contact you?

Yes

No

41. Thank you for participating in this important survey. Based on the information we gather from these surveys, we anticipate undertaking future work to help the sector address human resource issues. Would you be willing to participate in the second phase by providing further input and recommendations to solutions?

Yes

No. 42. If you answered yes to Question 41, please provide your name and contact information.

Please note: Your contact information will only be used to contact you regarding human resources issues in the automotive sector.

Lastly, to ensure that you are entered into a lottery for a chance to win one of three iPODs, please complete the contact information section below.

Contact Name:

Preferred method of contact (email and/or phone):

Page | 14


CONTACT INFORMATION

Name:

Organization:

Region:

Vancouver Island/Coast Mainland/Southwest Thompson/Okanagan Kootenay Cariboo Northern BC

Telephone:

Email:

Date:

THANK YOU FOR YOUR PARTICIPATION IN THIS IMPORTANT STUDY

Page | 1

Automotive Retailers Association – Employee Survey

ABOUT THE SURVEY The survey is being conducted by MNP LLP (“MNP”) on behalf of the BC Automotive Sector and the Automotive Retailers Association (“ARA”). The survey is part of a comprehensive analysis of the labour market for the automotive sector and the results will be used to develop strategies to support the recruitment and retention of skilled labour in the Automotive Sector. Your participation is voluntary and all information collected will be treated as confidential. All completed surveys received by MNP prior to January 28, 2013, will be entered into a draw for a chance to win one of three iPODs. A representative from MNP will contact you if your name has been drawn. About MNP MNP is one of the largest chartered accountancy and consulting firms in Canada, providing client-focused accounting, taxation and consulting advice. National in scope and local in focus, MNP has proudly served individuals and public and private companies for more than 65 years. For more information, visit www.mnp.ca

INSTRUCTIONS You have three options for completing this survey: 1. Online

Go to (https://www.surveymonkey.com/s/ARA_Employee_Survey) If you are completing the survey online, the information you input enters our database as soon as you enter it. If you need to change your response before completing the survey use the prompts (prev) to go back to the response you need to change. The survey should take approximately 20-30 minutes to complete.

2. Paper Complete the attached survey and FAX it to 604-685-8594 ATTN: Automotive Survey OR seal it in an envelope marked confidential and mail it to: Automotive Sector Survey c/o MNP 2300, 1055 Dunsmuir St Vancouver, BC V7X 1J1

3. Telephone Call 1-877-688-8408 or email [email protected] to arrange a time to complete the survey

To make completion easier, we suggest that you take the time to gather your data and thoughts on the questions and then complete the survey. All completed surveys received by MNP prior to January 28, 2013 will be entered into a draw for a chance to win one of three iPODs. A representative from MNP will contact you if your name has been drawn.

http://www.mnp.ca/about

https://www.surveymonkey.com/s/ARA_Employer_Survey

mailto:[email protected]

Page | 2


EMPLOYMENT

1. Which of the following describes the main activity of the business you work for? Please check all that apply

Franchise/New car dealer

Used car dealer

Recreational vehicle dealer

Motorcycle dealer

Automotive mechanical repair

Quick lube service

Body and collision repair

Glass repair

Parts and accessories wholesale and distribution

Automotive recycling and dismantling

Towing


Retail trade including department and warehouse stores

Other (please specify: ______________________________)

2. Which of the following best describes your current employment status?

Employed, full-time (30 or more hours per week)

Employed part-time (less than 30 hours per week)

Temporary or seasonally employed

Apprentice

Other (please specify____________________)

Don’t Know

3. Which of the following best describes your occupation?




Painter

Glass technician


Shop supervisor

Detailer








Tow truck driver

Dispatcher

Receptionist

Fleet manager


Account manager




4. Why did you choose this occupation?

Family business or familial connection

Image or status of the industry

Opportunities for career advancement

Job security

Salary

Flexible work arrangements

Ability to use your knowledge and skills

Page | 3


Mentoring opportunities

Other (please specify _______________________________________________)

5. On a scale of 1 to 5, where 1 is very unlikely, 3 is somewhat likely, and 5 is very likely, how likely is it that you would recommend your occupation to others currently thinking about career choices?

1 – Very unlikely

2 3 – Somewhat likely

4 5 – Very likely

N/A

Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6. How many years have you been employed in this industry?

Less than 2 years

2 years to 5 years

5 years to 10 years

10 years to 20 years

More than 20 years

Don’t know

7. How many years have you been employed in your current occupation?

Less than 2 years

2 years to 5 years

5 years to 10 years

10 years or more

Don’t know

8. How are the majority of your earnings paid to you?


Flat-rate by the job

Salary (a set weekly or monthly rate)

A base pay plus flat-rate by the job or sale

Commission

Other (please specify ______________________)

Don’t know / refused

9. Please rate your overall satisfaction (on a scale of 1 to 5, where 1 is not at all satisfied, 3 is somewhat satisfied, and 5 is very satisfied) with each of the following:

Not at all satisfied

Somewhat satisfied

Very

Satisfied N/A

Your current pay 1 2 3 4 5 N/A Please provide a brief explanation of why you are satisfied or dissatisfied.

Page | 4


Not at all satisfied

Somewhat satisfied

Very

Satisfied N/A

Your benefits package 1 2 3 4 5 N/A

Please provide a brief explanation of why you are satisfied or dissatisfied. The availability of technical training

1 2 3 4 5 N/A

Please provide a brief explanation of why you are satisfied or dissatisfied. The availability of non-technical training

1 2 3 4 5 N/A

Please provide a brief explanation of why you are satisfied or dissatisfied. Your career advancement opportunities

1 2 3 4 5 N/A

Please provide a brief explanation of why you are satisfied or dissatisfied. Your career choice 1 2 3 4 5 N/A Please provide a brief explanation of why you are satisfied or dissatisfied. Your job security 1 2 3 4 5 N/A Please provide a brief explanation of why you are satisfied or dissatisfied. 10. Do you have access to high speed internet?

At work

At home

Both at work and at home

Don’t know

No access to high speed internet

EXPERIENCE & TRAINING 11. Does your employer provide encouragement or support for training and or certification for

employees?

Yes

No

Don’t Know Please explain. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

12. Does your employer ….Please check all that apply

Pay you for your time while training

Page | 5


Allow you unpaid time off for training during your regular work hours

Pay for the full amount of your course fees

Pay some share of your course fees

Pay your travel expenses

Raise your salary upon completion of training

Give you a promotion upon completion of training

Allow you to take on new responsibilities and tasks

Provide some other incentive

Not aware of any incentives

Provide no incentives



13. In the last 24 months, have you or are you currently participating in any job related training and/or apprenticeship programs necessary for your current position?

Yes

No

Don’t Know/No Response

(IF NO, PLEASE SKIP TO QUESTION 16)

14. In what kind of training program(s) and/or apprenticeship(s) are you or have you participated?

Please list all training and/or apprenticeship programs attended, currently attending, or completed:

Name of training/apprenticeship

program Location Currently attending

Year of completion (if

applicable)

A Yes

No

B Yes

No

C Yes

No

D Yes

No

15. For each of the following types of training you have taken, please rate the degree (on a

scale of 1 to 5, where 1 is not at all effective, 3 is somewhat effective, and 5 is very effective) to which you felt it was effective in enabling you to do your job.

Not at all effective

Somewhat effective

Very

effective N/A

On-the-job training 1 2 3 4 5 N/A Please provide a brief explanation of why it was or wasn’t effective. In-house training, such as formal classes provided at the work site

1 2 3 4 5 N/A

Page | 6


Not at all effective

Somewhat effective

Very

effective N/A

Please provide a brief explanation of why it was or wasn’t effective. Manufacturer or parts supplier provided training at the work site

1 2 3 4 5 N/A

Please provide a brief explanation of why it was or wasn’t effective. Manufacturer or parts supplier funded training at an educational institution or private training facility

1 2 3 4 5 N/A

Please provide a brief explanation of why it was or wasn’t effective. Short course, such as a weekend or week-long Course

1 2 3 4 5 N/A

Please provide a brief explanation of why it was or wasn’t effective. Full-time course at an educational or training institution

1 2 3 4 5 N/A

Please provide a brief explanation of why it was or wasn’t effective. Apprenticeship training 1 2 3 4 5 N/A Please provide a brief explanation of why it was or wasn’t effective. Mobile training programs offered by colleges/universities

1 2 3 4 5 N/A

Please provide a brief explanation of why it was or wasn’t effective. After-hours continuing education course at an educational or training institution

1 2 3 4 5 N/A

Please provide a brief explanation of why it was or wasn’t effective. Interactive distance learning, such as satellite courses but not e-learning

1 2 3 4 5 N/A

Please provide a brief explanation of why it was or wasn’t effective. E-learning or online training 1 2 3 4 5 N/A Please provide a brief explanation of why it was or wasn’t effective. Quality of instruction from co-workers

1 2 3 4 5 N/A

Please provide a brief explanation of why it was or wasn’t effective.

Page | 7


16. Do you feel that you are lacking any specific job-related skills?

Yes

No

Don’t Know/No Response

17. Which of the following skill areas would you like to improve? Please select up to three areas you would like to improve.

Technical skills

Numerical calculations

Measurement

Reading comprehension

Writing

Oral communication


Problem solving

Decision making


Work flow coordination



Working with others


Digital technology (diagnostic equipment, multimeters, calculators, internet etc)


Don’t know 18. How much upgrading of your knowledge or skills with respect to new vehicle technologies

will you need over the next few years?

No upgrading

Some upgrading

Considerable upgrading

Don’t know

(IF ANSWERED „NO UPGRADING‟, PLEASE SKIP TO QUESTION 20) 19. In what areas related to new vehicle technologies do you anticipate requiring knowledge

or skills upgrading? ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________

20. Which of the following factors keep you from taking job related training? Please check all

that apply

Employer will not allow time away from work

Lack of time outside of working hours

Not aware of any programs offered at a convenient time or on a convenient day

Programs are too far for you to travel

Not aware of any programs offered in your region

Page | 8


Lack of financial support from your employer

Available training is poor quality

Lack of appropriate equipment on which to train

No interest in taking job-related training

Other (please specify _____________________)

No preventing factors


21. If you were going to take job related training, how would you prefer to receive job related training? Please check all that apply

On-the-job training

In-house training, such as classes provided where you work

Training provided through an educational institution or private training facility and funded by a manufacturer or parts supplier

Weekend or week-long course

Full-time course at an educational or training institution

Mobile training programs offered by colleges/universities

Mobile training programs offered by manufacturers or parts suppliers

Continuing education course offered at an educational or training institution in the evening or on weekends

Interactive distance learning such as satellite courses

Online training

Other (please specify _________________________________________)

I do not need any technical training

Don’t know

FUTURE PLANS

22. In five years time where do you see yourself?

Working in the same job for the same company or at a different company

Working at a higher level job within my company

Working at a higher level job at a different company

Owning and operating my own business in the same industry

Retired

Working outside of the industry I am currently in

Other (please describe _______________________________________________)

Don’t know / refused IF ANSWERED “WORKING OUTSIDE OF THE INDUSTRY I AM CURRENTLY IN”, PLEASE ANSWER

THE FOLLOWING TWO QUESTIONS:

23. What are some of the reasons for you wanting to pursue work outside of the industry in which you are currently employed? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________

24. What would encourage you to stay in the industry?

More employer-funded training

Page | 9


Better benefits

Better image or status of the industry

Better career advancement opportunities

Mentoring opportunities

Higher salary

Other (please specify __________________________________)

DEMOGRAPHICS

25. What age group do you fall into:

15 to 24 years

25 to 54 years

55 to 64 years

65 years or older

26. What is the highest level of formal education that you have completed?

Less than Grade 12

High school diploma or equivalent

Some post-secondary trades-specific training

Completed apprenticeship or trades certificate or diploma

Some post-secondary non-trades-specific training

College non-trades-specific diploma, degree or certificate

University certificate or diploma below a bachelor’s level

Bachelor’s degree or above

Other (Please specify __________________________)


27. Which of the following categories best describes the income bracket you currently fall under (before deductions)?

Less than $20,000

Confidentiality

MNP is committed to maintaining the security, confidentiality and accuracy of the personal information

we collect to provide the highest level of service to our clients. Our privacy policy adheres to both the

guidelines and principals underlying the Personal Information Protection and Electronic Documents Act,

as well as our own commitment to ensuring that clients are comfortable providing us with personal

information. The MNP Privacy Policy can be viewed at mnp.ca.

MNP is acting as an independent third party in this study. The results will be reported collectively and in

aggregate with no ability to identify individual respondents or businesses. All information provided to

MNP, including completed surveys, will be used only for the purpose of this study. Individual survey

responses will not be shared with project partners, and will be retained by MNP only until the final report

has been accepted by the Steering Committee. Upon acceptance, all information will be destroyed.

By completing this survey you are consenting to the collection of personal information by MNP. This

information will be used only for the purposes of this study and will not be disclosed to anyone, including

study partners, for any reason without your further prior consent.

Page | 10


$20,000-$39,999

$40,000-$59,999

$60,000-$79,999

$80,000 or above

Don’t know

28. Are you:

Male

Female Lastly, to ensure that you are entered into a lottery for a chance to win one of three iPODs, please complete the contact information section below.

CONTACT INFORMATION

Name:

Organization:

Region:


Mainland/Southwest

Thompson/Okanagan

Kootenay

Cariboo

Northern BC

Telephone:

Email:

Date:

THANK YOU FOR YOUR PARTICIPATION IN THIS IMPORTANT STUDY


Prepared by