Thank you very much, Mr. Chair.
I will deliver my remarks in English; however, I am happy to respond in French as well.
Good afternoon, everyone.
My name is Jean-Francois Champagne,
I'm the president of the Automotive Industries Association of Canada or, as we're also very well known, AIA Canada.
I’m joined today by Steve Leal, an AIA board member and the president and CEO of Fix Network, a global leader in collision, glass and mechanical repair services operating over 2,000 points of service worldwide.
AIA represents Canada’s automotive aftermarket industry, an essential service industry that includes the manufacturing of replacement parts, distribution networks, and service and repair shops. We are responsible for keeping Canada’s 26 million vehicles on the road in a safe condition. Our industry almost exclusively comprises small and medium-sized enterprises.
I'd like to focus my comments today on two key issues: competitiveness and labour shortages. While this may be the substance of my remarks, we're happy to answer other questions the committee members may have related to the items being covered in this important study.
Canada’s automotive aftermarket industry punches well above its weight when it comes to its economic impact. We employ nearly half a million Canadians and we contribute $32 billion annually to the economy.
Independent repair shops are in every riding across Canada, with nearly 25,000 facilities across the country. That would compare to about 4,500 automaker-authorized dealerships. These independent shops ensure that Canadians in every community—including small and remote—have reasonable and timely access to essential repair services for their vehicle.
Despite a healthy number of employees working in the sector today, our members are worried about labour shortages and skills shortages. The need for qualified automotive service technicians vastly outpaces the supply. Automotive service technicians are one of the top five most in-demand trades in the country. To keep pace with the current demand for labour, in four years Canada needs to certify 11,000 apprentices.
Further, new technology in vehicles is creating a skills shortage. Modern vehicles are essentially wirelessly connected computers on wheels and are serviced very differently from their predecessors. To service them, automotive tradespeople need new skills and competencies. This is particularly true when it comes to electric vehicles, which require skills related to high-voltage systems and things such as battery removal.
Skills training systems that exist today are not flexible and responsive enough to keep pace with emerging vehicle technology. Industry, with government support, can help raise awareness about how technology is changing the type of work that automotive tradespeople do. This in turn can help attract more students to the industry at a younger age and more people from non-traditional groups, such as women and new Canadians.
Collaboration can also allow for more training that bridges the gap between what workers need, such as up-to-date equipment and tools, and what the current training system offers. AIA has been working with governments and post-secondary institutions to provide this support, and I would be happy to cover this in the Qs and As more specifically.
We have people challenges, but we also have a policy challenge that has yet to be addressed by parliamentarians, and that is providing consumers with the right to repair their vehicles at the auto repair shop of their choice.
Vehicles are increasingly becoming like cellphones, connected wirelessly at all times. Every new vehicle sold in Canada generates copious amounts of data on how the vehicle is performing. Increasingly, the ability to service a vehicle depends on an auto repair shop's having access to this data. Currently, automakers—not vehicle owners—are the owners of the vehicle data. If our industry is to remain competitive, automakers should be required to provide access to this data so that consumers can continue to choose where they get their car serviced. Without intervention, automakers will continue to control the terms through which independent auto repair shops access necessary data. This means potential shop closures, compromising thousands of jobs. For the consumer, it means limited access and higher costs.
The current voluntary agreement between automakers and the aftermarket works well for traditional cars, but not for modern vehicles. Consumers need to be protected by legislation to reflect this new reality. More importantly, you should know that 83% of Canadians agree that automakers should be required by law to share data with independent repair shops.
If you want an example of why we need right to repair legislation in this country, let's look no further than EVs—electric vehicles. The government has made it clear that accelerating EV purchases is a major priority in order to help reduce emissions. Right now, our businesses would struggle to service EVs, as the automakers have made it increasingly difficult for our shops to access the data needed to do so. EV adoption, particularly on the scale desired by government, simply will not happen unless our businesses are able to service these vehicles.
Lawmakers around the world have recognized the importance of the right to repair, including legislation that gives consumers the right to repair their vehicles. Canada cannot afford to be left behind. Government must act quickly to advance right to repair principles through forthcoming legislative efforts. Addressing these issues will allow our small and medium-sized enterprises to remain competitive and to continue to serve as the primary provider of essential services for vehicle repair for Canadians.
Thank you for your time. I'm looking forward to answering your questions.
Thank you.