The collision repair industry could soon be facing a deep workforce shortage. While experts expect the industry to grow in the short and long term, shop owners have expressed concerns about a need for more skilled labor, particularly with more vehicles deploying tech-based features like advanced driver-assisted systems (ADAS) and battery-electric vehicles (BEVs).
Recent studies by CCC Intelligent Solutions said the shortages are hitting collision shop’s bottom lines. The study found a 4.9% year-over-year wage increase, partially due to a shorter availability of workers. Individual shops are already spotting the education gaps between younger technicians and the current strains in the repair industry.
“This is going to be a real struggle for the industry, to keep and get people that are willing to learn new technology,” John Ling, the owner of NEK Collision Repair in Lyndonville, VT, told Autobody News. “It’s always been a hands-on work industry, and now it’s going to be a technical industry.”
However, Scholarship America believes it has a solution.
The Minnesota-based organization, which started in 1958, has awarded more than $5 billion of scholarships to more than 3.1 million students across the U.S. since its inception. Scholarship America works with member companies, offering students from diverse backgrounds financial rewards to limit the high costs of higher education. The organization has worked with manufacturers like Mercedes-Benz and Toyota on previous projects. During their four-year programs, students in Toyota’s program received scholarship rewards between $5,000 to $20,000.
The organization made its pitch to auto manufacturers and vehicle maintenance companies in a recent blog post for the National Automobile Dealers Association (NADA). The organization explained that targeted scholarships can help businesses train future technicians, upskill existing employees, and establish a philanthropic presence in their communities.
“Investing in educational support like scholarships for your employees can have a two-fold benefit: you're assuring new members of the workforce that they can continue to grow, learn, and develop on the job,” explained Claire Berge Schmidt, associate vice president of marketing for Scholarship America. “And, by supporting them as they complete certifications, acquire new skills and move up the career ladder, you're also upskilling your own workforce.”
Many students, particularly those from low-income families and historically marginalized communities, face the tough choice of taking on debt or working full-time jobs alongside their studies, Schmidt explained. Scholarship programs aimed at historically underfunded groups could provide a pathway into the automotive workforce while alleviating some burdens of student loans.
For private businesses, Scholarship America hopes the upfront costs of early-career investment could alleviate the financial hardships associated with wage inflation and worker shortages.
“In addition, by creating scholarships for employees' families, you're also providing a benefit that can help them as they move further into their career and as their own kids grow up,” Schmidt added. “No other benefit keeps on giving quite like a scholarship program.”
More than 3.4 million students are expected to graduate from American high schools each year between 2025 and 2028, according to the National Center for Education Statistics. According to Scholarship America, the hope is that automotive companies at all levels will recognize the benefits of supporting future technicians, help close the skills gap and give back to the communities that support their business.
Ben Shimkus