Employers across Michigan’s automotive workforce are preparing for future skills gap challenges as the industry continues to shift to meet consumer demands while facing global competition.

The window into staffing needs in the heart of U.S. automotive manufacturing may be a mirror of nationwide conditions.

The Michigan Automotive Workforce Needs Assessment conducted by the Center for Automotive Research found that 29% of the state's employers expect significant or extensive skills gaps in the next one to three years. Employers in downstream businesses, like vehicle and parts sales, repair and maintenance, and logistics, reported the highest expectations for future skills gaps.

The transition to electric vehicles was ranked as one of the biggest impacts on the workforce, most respondents saying it currently poses challenges, but many said they're hopeful that in the future it would create more opportunities than challenges.

Digital and soft skills were noted as critical needs among current employees, as well as a demand for a diverse set of skills, including advanced software and programming, automation and robotics operation, and vehicle diagnostics and repair.

When it came to hiring, 43% of businesses reported moderate skills gaps when bringing on employees, the downstream sector reporting the largest share of significant upskilling needs.

The top role in demand across all sectors is general technicians. Respondents emphasized the need for stronger industry-education alignment and support for technical programs and training that is up-to-date with emerging technologies.