Sector Skills Assessment for the Automotive Retail Sector – Northern Ireland
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Sector Skills Assessment for the Automotive Retail Sector – Northern Ireland November 2010 Prepared by: IMI Research Department Fanshaws Brickendon Hertfordshire SG13 8PQ Tel: 01992 511 521 E mail: [email protected] www.motor.org.uk/research 2 Contents List of Tables and Figures............................................................................. 4 List of Tables .............................................................................................. 4 List of Figures ............................................................................................. 6 Introduction .................................................................................................... 7 Key Findings ............................................................................................... 7 Drivers of skill demand ...................................................................................................... 7 What is driving change? .................................................................................................... 8 Current skills priorities ....................................................................................................... 9 Anticipating what lies ahead ........................................................................................... 10 Section 1 – What Drives Skills Demand? ................................................... 11 Sector Definition ....................................................................................... 11 Structure of the Sector ............................................................................ 12 Vehicle Manufacturer Influence on Skills in the Sector .................................................. 12 Sector Size by Business Units ................................................................ 13 National and Regional Trends ................................................................. 14 Geographic Diversity of Businesses in the Sector ............................... 15 Distribution of Businesses in the Sector by Size and Sub-sector ....... 16 Employment Characteristics ................................................................... 20 Geographic Diversity of Employment in the Sector ........................................................ 21 Distribution of Employment by Sub-Sector ..................................................................... 24 UK Automotive Retail Occupational Workforce Profile ........................ 25 Gender Profile of the UK Automotive Retail Sector .............................. 28 Ethnicity Profile of the UK Automotive Retail Sector ............................ 29 Migrant Workers within the UK Automotive Retail Sector .................... 29 Age Profile of the UK Automotive Retail Sector .................................... 30 Key Drivers of Business Competitiveness............................................. 33 General ........................................................................................................................... 33 Economic Conditions of the Sector ................................................................................. 34 International Productivity Comparisons .......................................................................... 39 Vehicle Sales Market ...................................................................................................... 41 Section 2 - What is Driving Change? ......................................................... 46 Economic Outlook .................................................................................... 46 The Global Economy ...................................................................................................... 46 UK Economy ................................................................................................................... 46 Government Policy ................................................................................... 49 The Vehicle Scrappage Scheme .................................................................................... 50 Environment and the Green Agenda .............................................................................. 50 Vehicle Excise Duty and Company Car Tax ................................................................... 51 Changes to the VAT Rate ............................................................................................... 52 1 Government Investment and Subsidies .......................................................................... 52 Regulation ................................................................................................. 53 MoT Test ......................................................................................................................... 54 Block Exemption Regulation ........................................................................................... 54 Super Complaint – National Consumer Council ............................................................. 55 Self-Regulation of the Industry – Sector Response .............................. 55 Industry Recognised Standards (BSI) ............................................................................ 56 Consumer Behaviours and Preferences ................................................ 56 Fuel prices....................................................................................................................... 57 New Vehicle Technology ......................................................................... 58 Low carbon internal combustion engine vehicles ........................................................... 58 Section 3 - Current Skill Needs ................................................................... 62 Background .............................................................................................. 62 Skills in the Automotive Retail Sector .................................................... 64 Current Skill Levels in the Sector in Terms of Formal Qualifications Held ........................................................................................................ 66 High Level Skills - Level 4 qualifications and above ....................................................... 68 Intermediate Level Skills - Level 3 qualifications and trade apprenticeships ................. 69 Trade Apprenticeships .................................................................................................... 70 No Qualifications Held .................................................................................................... 71 Qualifications of the self employed ........................................................ 72 Highest Level of Qualification Held Over Time ...................................... 73 Recruitment, Skills Shortages and Skill Gaps ....................................... 74 General ........................................................................................................................... 74 Implication for Skills ................................................................................ 75 Vacancies and Recruitment difficulties .................................................. 75 National Employer Skills Surveys ........................................................... 79 Skill Gaps ........................................................................................................................ 80 IMI Employer skill survey 2010 ................................................................ 83 Overview of Skill Levels, Requirements and Gaps in the Sector ......... 85 General ........................................................................................................................... 85 Category of Skill Needs ........................................................................... 86 Management and Leadership Skills ................................................................................ 86 Technical Skills ............................................................................................................... 87 Basic and Employability Skills......................................................................................... 87 Generic Skills .................................................................................................................. 88 Section 4 – Future Skill Priorities, Anticipating What Lies Ahead ........... 89 Transformation of the Market .................................................................. 89 Transformation of the Current Personal Transportation Fleet ............. 89 Other Advancements in Vehicle Technology ......................................... 91 Employment Forecasts for the Sector .................................................... 91 Automotive Retail Sector Employment Projections – UK ..................... 91 2 Workforce Projection ....................................................................................................... 91 Automotive Retail Sector Employment Forecasts – Nations ............... 92 UK Nations Comparison ................................................................................................. 92 Perspectives on Future Labour Requirements in Northern Ireland ................................ 93 Scenarios for the Automotive Retail Industry 2020 ............................... 95 Scenario One – World Markets in 2020 .......................................................................... 95 Scenario Two – National Enterprise in 2020 .................................................................