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1 A U T O M O T I V E I dustry Sapshot Growth Patter Two primary compoets of the automotive idustry are automotive services ad maufacturig (Source: U S Bureau of Ecoomic Aalysis) With respect to 2001 Gross Domestic Product (GDP), the auto repair, services, ad parkig compoet of the overall idustry was $111 4 billio i curret dollars, while the motor vehicles ad equipmet compoet was $99 5 billio i curret dollars (Source: U S Bureau of Ecoomic Aalysis) Selected occupatios, such as automotive techicias ad mechaics, automotive body ad related repairers, ad automotive glass istallers ad repairers are expected to icrease i employmet by at least 10% durig the 2000 to 2010 time period (Source: U S Bureau of Labor Statistics) Employmet growth will cotiue to be cocetrated i motor vehicle dealerships ad idepedet service repair shops (Source: Occupatioal Outlook Hadbook, )

2 2 O ccupatioal Outlook The followig automotive idustry occupatios are expected to icrease employmet by at least 10% (262,000) durig the 2000 to 2010 time period: (Source: U S Bureau of Ecoomic Aalysis) Please ote occupatios chose based o >10% projected growth rates

3 3 T ypes of Jobs Created Part-time vs Full-time: (Source: As of 2002, per Curret Populatio Survey of U S Bureau of Labor Statistics) Of the 1,219,000 workers employed i motor vehicles ad equipmet maufacturig, 1,198,000 (98 3 %) work full-time, while 21,000 (1 7 %) work part-time Of the 1,784,000 workers employed i automobile ad repair services, 1,569,000 (87 9 %) work full-time, while 215,000 (12 1 %) work part-time Skill Sets: Most ew sales workers receive extesive o-the-job traiig, begiig with metorig from sales maagers ad experieced sales workers I large dealerships, begiers receive classroom traiig to lear the models for a sale, methods for approachig prospective customers, egotiatio techiques, ad ways to close sales For traiee positios, dealerships icreasigly prefer to hire automotive service techicia graduates of postsecodary automotive traiig programs Good readig ad basic math skills are required to study techical mauals, keep abreast of ew techology, ad lear ew service ad repair techiques as vehicle compoets ad systems become icreasigly sophisticated Productio workers accout for three out of five motor vehicle ad equipmet maufacturig jobs They receive most of their traiig o the job or through appreticeship programs W orkforce Issues Recruitmet ad retetio of employees, educatio ad traiig of curret ad potetial employees, ad promotio ad image i support of recruitmet, educatio, ad traiig were all cited by executives as challeges that affect the ability to develop a world-class automotive workforce Automotive idustry leaders idetified the followig challeges that affect recruitmet ad retetio: the eed for a more diverse workforce, the ability to retrai ad upgrade the skill sets of the existig workforce, ad the desire to improve the quality of work life for all employees Automotive idustry leaders shared that icreasig skill requiremets i the areas of mathematics, sciece, physics, ad keyboardig are creatig additioal challeges that affect i-house educatio ad traiig efforts Icreasigly, the idustry is fidig it ecessary to icorporate Eglish as a Secod Laguage ad basic remediatio ito educatio ad traiig programs Automotive idustry leaders idicated that educatig parets, teachers, couselors, ad studets regardig quality career opportuities ad career paths withi the automotive idustry is essetial to improvig promotio ad image efforts All busiess segmets maufacturig, wholesale, retail, ad the aftermarket cited a poor idustry image as a stumblig block that ihibits their ability to brig ew workers ito the idustry

4 4 H What is the High-Growth Job Traiig Iitiative? The High-Growth Job Traiig Iitiative is a strategic effort to improve the public workforce system s resposiveess to the eeds of the labor market so that the workforce ivestmet system ca become demad-drive The Iitiative is specifically desiged to build collaboratios amog employers, idustry leaders, busiess associatios, educators, traiers, the commuity ad techical college system, ad the public workforce system The purpose of these parterships is to support models that operatioally demostrate how a demad-drive workforce system ca more efficietly serve the workforce eeds of busiess while also effectively help workers fid good jobs at good wages igh-growth Job Traiig Iitiative I our efforts to meet the workforce demads of the 21 st cetury ecoomy, the U S Departmet of Labor s Employmet ad Traiig Admiistratio (ETA) is coductig forums with various targeted highgrowth idustries The Executive Forums are opportuities for seior executives ad huma capital experts to commuicate the critical workforce issues facig their idustry ETA coducted a Automotive Idustry Executive Forum i partership with 19 automotive idustry CEOs to discuss the critical workforce issues facig the automotive idustry o October 30, 2002 Executives from the followig automotive compaies ad orgaizatios atteded the Executive Forum: America Hoda Motor Compay, Ic BMW US Holdig Corporatio Brookdale Dodge DaimlerChrysler Corporatio Dreher-Holloway Motors Ford Motor Compay Fracis Tuttle Techical Ceter Geeral Motors Corporatio Holiday Chevrolet-Olds Mercedes-Bez USA, LLC Natioal Automobile Dealers Associatio Subaru of America, Ic Toyota Motor Sales, U S A Ic Uio Park Potiac-Hoda- BMW-GMC Truck-Volvo-Ford- Jaguar, Ic Volkswage of America, Ic Wiscosi Automobile & Truck Dealers Associatio To follow up, the Employmet ad Traiig Admiistratio ad public workforce system represetatives met with 28 Seior Huma Resource vice presidets ad corporate staff o April 16, 2003, to discuss the critical workforce issues facig their idustry The followig are the automotive compaies ad orgaizatios represeted at this Workforce Developmet Forum: America Hoda Motor Compay, Ic Automotive Service Excellece Automotive Youth Educatioal Systems BMW of North America DaimlerChrysler Corporatio Geeral Motors Corporatio Mercedes-Bez USA, LLC Mitsubishi Motor Sales of America, Ic Natioal Automobile Dealers Associatio Nissa North America Shell Lubricats-Jiffy Lube Iteratioal Sap-o Icorporated SPX Corporatio Subaru of America, Ic Toyota Motor Sales, U S A Ic Volkswage of America, Ic

5 5 Next Steps ETA is addressig the workforce issues of the automotive idustry from a atioal perspective by coductig Executive Forums with differet sectors of the automotive idustry to gather relevat iformatio from iformed groups i a disciplied maer These forums will provide ETA ad the public workforce system with the opportuity to gai further uderstadig of the overall critical workforce eeds of the idustry After meetig with idustry leaders, ETA will develop ad solidify strategic alliaces with busiess, educatio, ad workforce leaders who are proactively focused o the workforce issues cofrotig the automotive idustry ad egage them i developig iovative approaches to addressig their eeds ETA is parterig with employers ad educatio providers to develop ad model skills traiig solutios atioally that ca be replicated ad sustaied throughout the state ad local public workforce system These approaches will help esure that workers have the right skills for the right jobs at the right time T he ETA I Actio Automotive Youth Educatioal Systems (AYES) Iitiative Challege With the icreased pace of techological chages i recet years ad the lack of awareess about career opportuities i the automotive field, it has become icreasigly difficult for the automotive idustry to fid qualified body ad service techicias The umber of ew graduates from secodary ad associate degree automotive programs does ot come close to meetig the demad for the 12,000 to 15,000 additioal techicias who are eeded atiowide each year Addressig the Challege The AYES iitiative addresses this workforce challege by supportig the developmet ad growth of select, idustry-stadard automotive techicia traiig programs at techical high schools, with the support of parterig automotive maufacturers, local dealers, ad high schools AYES ecourages studets to pursue careers i the excitig ad challegig fields of automotive service techology ad collisio repair/refiish ad prepares them for etry-level techicia positios or challegig academic optios with automotive programs that offer professioal certificatio by the Natioal Istitute for Automotive Service Excellece (ASE) AYES emphasizes applied academics ad cotextual classroom learig ad provides participatig studets with metored worksite iterships Sustaiable Impact AYES esures sustaiability through its strog, dyamic parterships amog automotive maufacturers, automotive dealers, ad high-performig high schools A $600,000 grat from the Employmet ad Traiig Admiistratio (ETA) will allow AYES to certify 5,000 additioal studets through these parterships, while icreasig the umber of programs offered atiowide These federal grat fuds are leveraged by at least $1,050,000 i direct ad i-kid support from AYES, participatig high schools, automotive maufacturers, ad sposorig state ad local dealers associatios This sigificat idustry support clearly demostrates the value of the Iitiative for the idustry ad promotes opportuities for the expasio, replicatio, ad log-term impact of AYES

6 A U T O M O T I V E N atioal Programs A dditioal Resources Olie Tools Career Oe-Stop (www CareerOeStop org) The Career Oe-Stop is a resource for busiesses ad job seekers It cotais liks to America s Job Bak, America s Service Locator, ad America s Career IfoNet Appreticeship There are curretly 260 appreticeship programs throughout the atio focusig o automotive services Job Corps Job Corps provides traiig i 63 automotive-related programs, icludig Auto Body/Collisio Repair, Automotive Trasmissio, ad Diesel Mechaics I Program Year 2001, 1,714 Job Corps studets graduated from automotive-related programs www doleta gov www oetceter org Other Tools Toll-Free Help Lie US2-JOBS ( ) (TTY) The Toll-Free Help Lie provides up-to-date iformatio about the full rage of workforce services for workers ad busiesses as well as aswers to employmet ad traiig questios C otact the BRG For more iformatio o the activities ad services of the ETA s Busiess Relatios Group (BRG), please cotact: U S Departmet of Labor Employmet ad Traiig Admiistratio Busiess Relatios Group 200 Costitutio Ave, NW Room S-4206 Washigto, DC (202) busiessrelatios@dol gov Updated July 2003