Workforce Development Month, celebrated each September, is the perfect opportunity to recognize and honor the behind-the-scenes people and partnerships driving economic opportunity and mobility across the country. Auto production, for example, is America’s top manufacturing sector, and it supports nearly 9.7 million American jobs. This doesn’t happen by accident—it’s the result of decades of deliberate investment in the automotive industry workforce.
Workforce training in the U.S. automotive sector has never been more vital. Vehicles and the technology within them are rapidly changing, and the U.S. needs a workforce that can adapt just as quickly. From 2023 to 2033, the Bureau of Labor Statistics (BLS) projects that there will be approximately 209,800 openings for automotive manufacturing technicians (including service technicians) each year, largely due to retirement and replacement needs. Companies need to find creative ways to engage with the next generation of workers to ensure this gap is filled with individuals who are proficient in the skills the modern vehicle demand like tool and die, mechatronics, and even coding. Preparing the U.S. workforce is essential for ensuring both the American auto industry and the United States’ economic competitiveness.
In fact, there are key players investing in the American automotive industry—Japanese-brand automakers. Today, these automakers play a crucial role in U.S. workforce development, propelling the industry forward. They were early to understand the imperative of more effective workforce training and were among the first in the U.S. to notice the preparation gap created by 21st-century technological advancements and see the need for more standardized technical skills. Japanese-brand automakers are also stepping up to the plate to provide the next generation with the skills necessary for the advancement of the American auto industry.
A recent white paper authored by The Progressive Policy Institute (PPI) and Opportunity America entitled, Employer-Driven Workforce Development, details exactly how Japanese-brand automakers model the necessary engagement to power the industry, specifically through six varieties of employer engagement which include: serving on an advisory committee at an educational institution, helping to craft workforce education curriculum, collaborating with educators to upskill incumbent workers, partnership with a training provider to recruit students and offer support, contributing financially, and through providing opportunities for work-based learning at the company. Each of these types of employer engagement showcase the depth and breadth of Japanese-brand automakers investment in their workforce.
In addition to the engagement listed above, Japanese-brand automakers recognize that graduates from community and technical colleges are vital to filling the skills gap in the workforce, as they are often well-equipped to handle the complexities of modern automotive technologies, including electric vehicle (EV) systems, advanced diagnostics, and manufacturing automation. These colleges are a proven pathway for workers to acquire industry-specific certifications, and more than 50% of automotive technicians and engineers in the U.S. receive their postsecondary education at community and technical colleges. Japanese-brand automakers collaborate closely with these schools to provide hands-on training and certification opportunities.
What’s more, Japanese-brand automakers invest in education and training at all levels, from pre-K to middle school to four-year universities, all the way through advanced technical training. With the goal to create a talent pipeline that prepares students not just for careers in automotive but other STEM related careers. Some investments come in the form of time, personnel, or space, such as allowing use of employers’ equipment or facilities, providing instructors, guest lecturers, and other human resources, and furnishing colleges with data on industry trends, graduates’ incomes, and managers’ satisfaction with the new hires’ skills. Other investments are monetary, such as sharing operating costs or cooperating to build new educational infrastructure or even paying some or all students’ tuition and fees. This blended model of investment leads to well-rounded, prepared individuals who enter the workforce feeling capable and confident no matter their career path.
On top of these workforce development efforts, Japanese-brand automakers’ core economic investments set them apart as a driving force of the American auto industry. As a group, these manufacturers tout $66.4 billion in cumulative manufacturing investments since 1982, over $4 billion in cumulative research and development (R&D) capital investments since 1977, and over $1 billion in charitable donations since entering the market in 1957. Not to mention, that today they provide for over 110,000 direct jobs in the U.S. and support over two million.
This data tells a compelling story–that’s over two million Americans who can put food on the table for their families and likely millions more whose lives have been touched by this immense effort. The impact of these manufacturers is tangible and felt deeply in the communities in which they operate.
The decades of engagement to develop the U.S. workforce by Japanese-brand automakers can and should be used as a template for other industries as the need for highly skilled workers grows increasingly important within the American automotive industry.