Machinery dealerships facing critical labour shortage

A staffing survey, conducted by CNH Industrial of its dealerships has revealed that the premises are facing a huge challenge in finding and retaining skilled staff, with demand for apprentices and experienced tradespeople exceeding supply.

CNH Industrial Managing Director for Agriculture, Brandon Stannett, said the purpose of the survey was to collect feedback in relation to the resources available at dealer locations, with a particular focus on staffing levels around parts and service, as part of an ongoing strategy aimed at tackling the labour shortage issue.

“The results haven’t come as a surprise to us – we are well aware of the difficulties our dealerships have, particularly in smaller and more remote locations, in recruiting and retaining skilled staff,” he said.

“But the survey has confirmed where the greatest need is within our dealerships, and it highlights the importance of greater investment in a larger pool of qualified technicians and spare parts experts,” Stannett added.

“In smaller towns, our dealerships are often one of the biggest employers, so it’s not only farmers who are potentially losing out from labour shortages, but rural and regional communities and their economies as well.”

The survey was completed by dealer locations accounting for about 90 per cent of the entire Case IH and New Holland dealer network across Australia. Of the respondents, 97 per cent said they had advertised for staff in the period from July 20, 2020, to June 21, 2021, seeking to fill almost 800 positions. But as at July 1 this year, half of these positions remained vacant.

Participating dealerships confirmed technician availability in the market was the single biggest need and the most difficult to source, with the pool of suitable employees very limited in rural and regional areas. A total of 90 per cent of respondents had advertised for additional technicians since July 2020, but at the end of June 2021, only 41 per cent of these positions had been filled.

When it came to securing apprentices, 76 per cent of respondents had advertised for new first-year apprentices since July 2020, and by the end of June 2021 just 69 per cent of the roles were filled.

At state level, there are obvious differences in supply and demand of the labour and skills needed.  NSW, followed by WA, were the states that found it hardest to source staff according to the survey, with more than 50 per cent of advertised positions remaining open. Stannett said further data was needed to understand why that was the case. 

“The key metric though when it comes to qualified service technicians is the relative spread of the unfilled positions with the variance of the highest ‘fill rate’ versus the lowest being between 45 per cent and 59 per cent, showing the demand is largely the same wherever you are,” he said.

“Service technicians are where the Case IH and New Holland dealer network’s greatest need is and if that need becomes too great, it can obviously impact a workshop’s capacity to service customers, putting a lot of pressure on dealerships at particularly busy times of year, such as now during harvest,” Stannett said.

He said parts interpreters and salespeople were also in significant demand, with fill rates of 58 per cent for advertised sales positions, and 44 per cent for parts positions.

“It’s clear these areas need to be addressed too, as they are just as critical in the life cycle of a machine.”

CNH Industrial is currently investigating a range of initiatives to help solve the labour shortage crisis. At the same time, the company is continuing to develop trainees within its manufacturing facilities at Mannum in South Australia, and Cowra, NSW, supporting employment in these locations.

CNH Industrial also supports dealership trainee programs and has run a dedicated Case IH and New Holland apprenticeship program through Riverina TAFE for almost five years.

Stannett said the company is keen to seek assistance from government for additional programs and incentives for growth in regional employment and apprenticeships.

“This is all part of a multi-tiered plan we are developing alongside dealers, and with the support of the wider industry, government, training bodies and other stakeholders,” he said.

“We’re a proud organisation that provides critical products to the agricultural industry and combined with our independent, locally-owned dealerships that support those products, we’re up to the challenge of supporting initiatives to grow our most important resource: people.”