Good morning, Madam Chair.
Our chairman of the board, Robert Pitt, and I, are very pleased to be here this morning on behalf of the 4,000-member locations and branches that belong to the Automotive Industries Association of Canada, to discuss Canada's labour market development agreements.
For 72 years our association, also known as AIA, has been representing the interests of Canada's automotive service and repair industry, a $19.4-billion industry that employs 420,000 Canadians across the country, mostly in small and medium-sized enterprises. We represent almost 50% of all workers in Canada's combined automotive sector. Our industry is composed of companies like Canadian Tire, Kal Tire, Valvoline, Gates, and NAPA Auto Parts. Our members manufacture, distribute, retail, and install, automotive replacement parts, accessories, tools, and equipment.
There are over 22 million registered vehicles on our roads, with the average being over nine years old. Therefore, AIA members are delivering an important and valuable service in every community across the country, every day, year-round. We keep Canadians and their vehicles safe.
In that capacity, AIA is committed to promoting, educating, and representing all members in all areas that impact the growth and prosperity of our industry. This includes one of the most important challenges facing our industry today: the need to attract and retain more qualified and skilled workers and provide them with continuous, up-to-date training.
In 2013, AIA and the Canadian Automobile Dealers Association, the Canadian Vehicle Manufacturers' Association, and the Global Automakers of Canada, conducted a study entitled “Performance Driven: An Update on the Labour Market Opportunities and Challenges for Canada's Motive Power Repair and Service Sector”. The study focused on identifying the major human resources challenges faced by the Canadian automotive companies and what is restricting our growth and our prosperity. While the study identified a broad range of issues affecting the competitiveness of companies, it also found that one of the largest challenges is the supply of a qualified labour force. The study showed that there are just over 11,800 unfilled positions in our industry today, with over 25% of employers in Canada's automotive service and repair industry reporting having one or more unfilled positions.
The economic consequences for our industry, and for Canada as a whole, will be significant if these challenges are not addressed. Skill shortages will damage the productivity of the automotive repair and service industry and the Canadian economy as a whole. Vehicles are imperative to Canadian families and to the workforce. According to J.D. Power and Associates, 30% of Canadians rely on their vehicle to earn a living every day, making it essential that skilled technicians are available for the required maintenance and repairs of our growing and aging vehicle fleet.
A national skills shortage is dramatically impacting our industry and steps must be taken, both in the short term and the long term, to address the growing gap between supply and demand. Over the past five years, the number of workers entering the automotive industry as graduates of pre-apprentice or apprenticeship programs has dropped by over 2,500. The number of apprentices has also dropped from just over 13,000 in 2009 to just over 9,000 today; a loss of another 4,000 workers. Our study showed that this labour trend will continue, with demand significantly outpacing supply over the next five years.
Compounding the issue is that 20% of employers in the service and repair sector are telling us that they are preparing to fill vacancies due to retirement in the next five years. This will mean not only more unfilled positions but also a loss of long-term, experienced workers.
So, what can be done?
I'll now turn it over to our chairman, Mr. Robert Pitt.