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How Skilling Programmes Can Address The Auto Industry’s Changing Market Dynamics

As automation and the dynamics of digital disruptions impact automotive jobs, skilling and relearning are emerging as the main mantras for workers to remain future-ready.

Photo Credit : Reuters,

The era of longstanding academic skills is over. Welcome to the epoch of lifelong upskilling, relearning and reskilling! This paradigm transition is a ground reality in myriad domains, including automotive, which has witnessed a shift from manual to automatic, autonomous and electric vehicles (EVs). 

Given this dynamic scenario, the biggest impact is now unfolding vis-à-vis automotive jobs. Today, tacit understanding abounds among all stakeholders that disruptions in employment functions and opportunities will remain a permanent feature in automotive. Consequently, the capabilities and skills of people working in the industry will define how seamlessly it operates. 

Impact of Automation

To comprehend Industry 4.0 implications on the shop floor, a comparison of eras is helpful. Earlier, workers were present in large numbers. Due to automation, semi-skilled workers are being replaced by a huge percentage of skilled engineers. With machines and designs programmed and controlled via computers, jobs linked to the maintenance of automation systems will keep growing. Unlike manual roles, these are more service-oriented and allied to support functions. 

For years, the automotive sector has been a frontrunner in manufacturing research and development. Backed by annual R&D spends of more than $55 billion, automotive remains a key driver of innovation. Auto players keep investing continuously in developing safer and greener vehicles manufactured with innovative technologies and materials. 

Cognisant of its evolving manufacturing dynamics, auto companies have been investing consistently in and implementing distinct measures for developing the skills of their workforce across the world. As a result, training is provided in-house by companies and industry bodies, even via collaboration with relevant government ministries and through vocational education and training institutions. 

Considering the profound transformation currently underway, auto entities need to place greater emphasis on how they attract, recruit, train, reskill and upskill workers. Periodic training of workers along with refreshers courses is important for upgrading the capabilities of workers whereby they can manage new tools and technologies. An ambience of constant skilling is necessary for workers to possess the appropriate skill sets in driving consistent innovation as well as for greater productivity and sustainability at all times. 

The automotive sector comprises complex supply chains. Over the years, these have metamorphosed into a global production network. Although only a select set of companies and countries pilot the production of vehicles, the sectoral value chain remains far-flung across the globe. Herein, a significant number of companies manage the design, development, manufacture, marketing and sales, repairing and servicing of automobiles and automotive components. 

On average, every manual vehicle contains 20,000-plus parts. These are sourced by OEMs (original equipment manufacturers) from thousands of diverse suppliers. But all this is set to change. In recent years, overall production and sales of traditional automobiles have been relatively stagnant. 

Conversely, the global EV segment has been recording rising growth within a comparatively short period. Global warming and increasing pollution levels, among others, have been resulting in higher emission targets, fiscal incentives and procurement programmes to boost the lure of EVs. The growing deployment of EV infrastructure has exerted immense influence on the faster development of EVs. 

The advent of EVs and digitalisation has led to a new era of advanced automotive manufacturing technologies. These include integrating advanced analytics, sensor technologies, artificial intelligence, the Internet of Things, blockchain, cloud computing, machine learning, robotics, 3D printing and more. 

Mobility Services and TVET

Significantly, the auto industry pioneered the industrial use of robots, including ‘cobots’ (collaborative robots) that work alongside people on the factory floor. Together with allied technologies such as exoskeletons – robotic suits used to minimise the strain on workers from repetitive tasks – automation is being extended by robots to welding, painting and production process tasks. Not surprisingly, among manufacturing verticals, the sector is the largest user of robots, behind 30% of the overall installations. 

The impact of tech disruptions on employment also depends on its stage of development in the sector. In emerging nations like India, a large percentage of workers are still employed in roles such as assembly and painting. These low-cost, low-skilled jobs may be replaced or transformed at a faster pace through automation than those of highly qualified workers. 

Meanwhile, as the auto industry transitions from ownership to hiring and shared mobility, more jobs will emerge in developing/providing services and products facilitating future-ready mobility solutions. Against this backdrop, digitalisation and allied tech advances are a special hurdle for SMEs, especially the smaller ones, who may not be ready or willing to deploy the same. Sooner or later, such SMEs will be marginalised.  

Once again, the necessity of lifelong learning and reskilling in augmenting employees’ capabilities to ensure sustainable work opportunities come to the fore. As per the Future of Jobs Report 2018 from the World Economic Forum, the automotive industry will see higher demand for process automation specialists, scientists and data analysts as well as industrial and production engineers, among cohorts of highly-skilled workers. 

Shortages of core and technical skills are, however, posing a challenge for the industry, affecting their competitiveness while eroding the employability of workers. This highlights the criticality of training and reskilling for both employers and employees. 

For employers, increased investment in work-linked learning and training of new workers will be required together with the upskilling and reskilling of the existing workforce. For workers, continuous training and lifelong learning will be vital for finding secure employment in the auto sector or other domains. Industry and government ministries can collaborate closely in creating initiatives promoting sector-relevant skills training to boost the employment quotient of workers. 

Conventionally, automotive has relied on TVET (Technical and Vocational Education and Training) systems to offer an adequate supply of workers with industry-centric skills. Nevertheless, considering the dynamic nature of labour market requirements, it is imperative to boost the relevance of TVET curricula by embedding digital and core skills into it to the best extent possible for retaining future-readiness. 

Thanks to the proven benefits for all automotive stakeholders, companies must consider skilling and learning expenditure as investments, not costs. In the case of SMEs who cannot absorb skilling costs, industry players within the value chain should jointly bear or subsidise such expenses, given the common benefits for all. 

Finally, the industry should ascertain that migrant workers are part of the reskilling programmes. Ever since the mass production of automobiles began in the early 1900s, the sector has been drawing droves of migrant workers. Presently, migrants account for a major percentage of the auto workforce. 

Ultimately, whatever the workers’ category, training through various modes, including apprenticeship courses, will be indispensable in keeping employees up to speed on the evolving job functions and their requisite skills. That is the only viable solution for the industry to always stay future-ready. 


Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house


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Skilling Automation ASDC Nikunj Sanghi ASDC

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