Michigan Business Beat | Elizabeth Krear, CAR, Automotive Workforce Faces Growing Skills Gaps in '26

Chris Holman welcomes back Elizabeth Krear, President and CEO of the Center for Automotive Research (CAR) in Ann Arbor, MI, for an update on Michigan's automotive workforce. Krear discusses highlights from last month's CAR Management Briefing Seminars (MBS) in Ann Arbor and Ypsilanti, plus new CAR research showing nearly one in three automotive employers expect significant workforce skills gaps within the next three years. New CAR research finds that Michigan's automotive workforce challenges are closing in fast, driven by electrification, automation, digitalization, policy shifts, and global competition. The Michigan Automotive Workforce Needs Assessment gathered confidential survey and interview feedback from 67 businesses across 20 Michigan counties, spanning upstream, core, and downstream automotive sectors. Key finding: 29% of employers expect significant or extensive skills gaps in the next 1-3 years, while 43% expect moderate gaps. "Michigan's automotive leadership depends on the ability to anticipate workforce needs before they become constraints," said Krear. "This assessment gives employers, educators, workforce partners, and policymakers a clearer view of where skills gaps are emerging and where coordinated action can strengthen Michigan's competitiveness." Key Findings: Downstream businesses—vehicle and parts sales, repair and maintenance, and logistics—face the greatest projected pressure, including the largest share expecting extensive gaps. Digital and soft skills are critical needs. Employers point to data management, AI, and software development, alongside communication, professionalism, agility, and problem-solving. Automotive talent needs are increasingly interdisciplinary, requiring advanced software/programming skills, automation and robotics operation, and more. Full findings, methodology, and implications for Michigan's automotive supply chain: cargroup.org/publication/workforce-needs-assessment-partf/ The Center for Automotive Research (CAR) is an independent, non-profit organization conducting industry-driven research on Technology & Manufacturing, Energy & Sustainability, and Labor, Economics, and Policy. CAR has served as a trusted automotive industry resource for over twenty years. www.cargroup.org » Visit MBN website: www.michiganbusinessnetwork.com/ » Subscribe to MBN's YouTube: www.youtube.com/@MichiganbusinessnetworkMBN » Like MBN: www.facebook.com/mibiznetwork » Follow MBN: X.com/MIBizNetwork/ » MBN Instagram: www.instagram.com/mibiznetwork/