The skilled labor work force is decreasing rapidly. There is undeniably a shortage of highly skilled workers. In fact, the U.S. Department of Labor (DOL) states the United States is experiencing a shortage of service industry workers. Many businesses that use skilled labor are complaining about the changing environment of their businesses and the need for skilled labor. U.S. companies are faced with the skilled workers they do have getting older and retiring, the fact that younger people are less interested than they used to be in going into a skilled trade, and that many of their employees are poorly trained. Moreover, the cost to train these workers is increasing and the rising cost is difficult for many small businesses to handle.

The DOL estimates automotive technicians held about 790,000 jobs in 1998. The department also reports that auto body repair workers held 227,000 positions and that approximately 22 percent of all automotive repair industry workers were self-employed. Currently, the auto industry is looking for 60,000 automotive technicians nationwide, according to the National Automobile Dealers Association.

The automotive service industry needs highly skilled workers who are educated in a variety of areas such as mathematics, electronics and computers; and who have good reading and analytical skills needed to work on today's sophisticated vehicle components. It is important for an automotive industry trainee to have knowledge of how an automobile works. The DOL states, “The growing complexity of automotive technology necessitates that cars be serviced by skilled workers, contributing to the growth in demand for highly trained mechanics and technicians.” The department also suggests the outlook is good for employees who have formal training and the demand for trained workers is expected to increase.

According to a report conducted by the National Association of Counties, 75 percent of the largest counties in America reported that they face a labor shortage of skilled workers. Eighty-five percent reported the shortage has increased over the last five years and 97 percent characterize the shortage as serious to very serious.

The cost to train mechanics and technicians can be high, but it is imperative for the automotive service industry to have highly skilled workers. Training can come from many areas, such as community colleges, technical schools and on-the-job training programs. The labor shortage in the United States is growing. There are jobs available in skilled trades but no one to fill them. Many businesses say they are having a hard time finding skilled workers and that training is an option, but one that takes time and money. The time it takes to train the average repairperson is three to four years.

The Skilled Workforce Enhancement Act, H.R. 877
U.S. Rep. Mark Foley, R-Fla., has introduced H.R. 877, the Skilled Workforce Enhancement Act (SWEA) of 2001. This act was introduced in the previous Congress, but was not passed. The measure has been introduced again and has 46 cosponsors (at print time). This bill would give businesses the tools they need to afford training. If enacted, SWEA will give small businesses with highly skilled workers of 250 or fewer employees a federal tax incentive to train employees. The training would consist of on-the-job training and classroom instruction in apprenticeship-training programs certified by the U.S. Secretary of Labor or a program administered by an employer, industry or trade group. The credit amount would be $15,000 per apprentice per year for up to four years.

The legislation requires training to provide an overview of the trade; instruction of fundamental, intermediate and advanced skills used in the trade; and training in skills required for the trade such as mathematics or computer knowledge. In addition, the bill requires training on specified tools and equipment, on-the-job training and the use of tests and assessment plans. MoOther Federal Legislation
The Small Employer Tax Relief bill, H.R. 1037, was introduced by U.S. Reps. Donald Manzullo, R-Ill., and Nydia Velázquez, D-N.Y. H.R. 1037 provides tax relief for small businesses and simplifies the tax code. “For years, the tax code has punished small employers by taxing them at higher individual rates ... this comprehensive bipartisan tax relief bill starts to level the playing field,” says Manzullo. Among its highlights, the bill would:

• Accelerate health insurance deduction for the self-employed to 100 percent
• Increase expensing to $50,000
• Repeal the individual Alternative Minimum Tax
• Allow small businesses to use the cash method of accounting without limitation
• Provide tax credits for small business investments in new environmentally friendly technologies
• Provide training for highly skilled workers
• Eliminate capital gains and penalties on home offices.

According to Velázquez, ranking member of the Small Business Committee and cosponsor of H.R. 1037, “This bipartisan legislation will provide critical tax relief, simplification and taxpayer protection for small business owners.&3148; (See her guest editorial.)

In conclusion, since the automotive industry is reliant on quality of workmanship, highly skilled workers are vital. The demand for these workers is increasing as is the training needed for today's sophisticated automobiles. Congress is aware of the growing problem arising from the lack of highly skilled workers and, as representatives of an industry in need of these workers, independent automotive repairers need to show their support.

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