Tariffs are Trumped by training and recruitment fears for motor sector

As negotiations continue over tariffs affecting British cars imported to the US, there is little doubt the automotive industry is facing a bumpy ride ahead.

Cars are the biggest single UK export item to the US, accounting for sales in excess of £6bn. This includes luxury brands such as Bentley, Aston Martin and Jaguar Land Rover. In March, as news of President Trump’s 25 per cent tariff broke, Tata, JLR’s Indian owner, announced they were pausing shipments of their British made cars to the US. While this trade row rumbles on, the outcome of Trump’s levies on industry jobs, manufacturing and the wider economy will be significant.

In my view, an even bigger threat to our motor industry is racing towards us: training and recruitment is our principal issue across all of the motor trade. Around 50,000 people in this country are directly employed in the motor trade – two per cent of Scotland’s total workforce. It is a vital part of our economy, yet we are losing motor technicians at an alarming rate. Figures revealed in February by the Institute of Motor Industry (IMI) showed a six per cent drop in automotive apprenticeship starts for the academic year to 2024. Furthermore, the IMI predict 160,000 vacancies in the sector will require filling by 2031.

​The number of automotive apprentices is falling (Picture: stock.adobe.com)

Nowadays garage technicians are highly skilled with electronics expertise. Many have transferable skills attractive to other industries. And therein lies a problem. There is a talent drain to growth sectors, such as renewables and telecoms, where government subsidies are propelling their expansion. Offshore windfarms, for example, are appearing across the UK at a regular rate, offering a higher wage to engineering recruits thanks to subsidies. Currently, the Scottish Government gives around £7,400 to train a motor apprentice, but in England and Wales this exceeds £20,000. It is a huge disparity and the skills gap is only increasing.

Of course, this issue is not just restricted to Scotland. In February, Labour pledged £2.5bn to support Britain’s steel industry. The motor industry contributes two per cent to overall UK GDP and employs around 800,000 people, yet we get nothing like that sort of investment. Whether you’re driving to and from work, taking your children to school or collecting the weekly shop, the importance of the motor vehicle to our daily life is without question. As someone who grew up in rural Ayrshire, I can vouch for this. Having a car was crucial to get anywhere and do anything.

The SMTA represents 1,300 members ranging from a small rural garage to some of the biggest brands in the country. Our members can and will provide the best training they can whilst ploughing valuable resources into recruiting talent. But paying technicians and sales staff higher salaries will only drive up the cost of the services they provide.

Our political leaders must recognise the importance of the motor industry and help us prepare for the future. Otherwise, I fear we will be stuck in the slow lane for some considerable time to come.

Alan Gall is Chief Executive of the Scottish Motor Trade Association