Addressing the auto care labour market: Is global talent the answer?

April 22, 2025

At the 2025 AIA Canada National Conference at the Canadian Auto Care Industry Conference (CAIC), attendees gained valuable insight into the labour market through a panel discussion focused on workforce challenges. Moderated by James Channer, CEO of InMotion Brands, the panel featured industry leaders Paul Prochilo, CEO of Simplicity Car Care, Karim Mouldi, president of Canari International Recruitment, and Susan Mowbray, partner at MNP. Together, they discussed a pressing question: Is immigration the answer to the skills shortage?

From left to right: James Channer, Karim Mouldi, Tony Kuczynski, Susan Mowbray, Paul Prochilo

The Canadian auto care industry is facing significant workforce challenges, particularly in securing skilled and specialized automotive service technicians. While job vacancy rates have declined, and unemployment has risen slightly—factors that would typically indicate a larger talent pool—businesses continue to struggle to find qualified workers.

The real issue is the shortage of individuals with the necessary skills and training to fill these jobs. Demographic shifts play a major role, as the retirement of baby boomers is creating a talent gap that younger generations are not filling at the same rate. Generation X and millennials represent smaller cohorts, with fewer individuals pursuing careers in the trades. Additionally, apprenticeship completion rates remain low, with approximately half of apprentices not finishing their programs.

Over the next five or six years, Canada is expected to be short about 30,000 technicians. As vehicle technology advances and repairs become increasingly complex, the need for properly trained professionals will only grow, underscoring the urgency of addressing this skills gap.

Immigration: Is it the solution?

Immigration has been considered the ideal strategy to address the skills gap. Historically, around one-third of vacancies have been filled by temporary foreign workers. However, recent regulatory changes have made this solution more complex, expensive, and unpredictable.

Recent federal regulations have reduced the share of temporary foreign workers a business can hire from 20 per cent to 10 per cent, shortened work permits to just one year, and added a wage premium of 20 per cent above the median salary for foreign hires. These policy changes pose substantial challenges, particularly for smaller businesses and those operating outside major metropolitan areas, where access to skilled labour is already limited.

“You cannot hire an employee from abroad unless you pay 20 per cent more than the average salary. When that salary is over $33 to $36 per hour—and other employees from within Canada are paid less—it unfortunately does not make much economic sense. Unfortunately, it kills many business owners’ enthusiasm towards hiring international employees.” said Karim Mouldi.

Additionally, the process of obtaining work permits now requires a minimum lead time of six months, further complicating hiring timelines. With costs exceeding $10,000 per worker, the financial burden is significant, particularly given the uncertainty surrounding skill levels and cultural fit upon arrival. Despite these challenges, businesses continue to depend on immigration to fill highly specialized roles when qualified local talent is unavailable.

Additional considerations when hiring global talent

While immigration remains a critical part of the solution, it has challenges. Beyond bureaucratic complexity and cost, businesses must also consider:

Recruitment process due diligence: Thoroughly vetting candidates abroad is essential. Some organizations have successfully partnered with international evaluators who physically assess technicians’ skills before they arrive.

Adaptation and cultural integration: Even the best technicians might struggle if they feel isolated, homesick, or overwhelmed with the stress of adapting to a new place. To combat this, some companies are creating support systems to help foreign workers adjust—like pairing them up with other new hires or offering housing help.

Retention strategies: Several businesses have adopted innovative measures such as housing arrangements that promote socialization among foreign workers or mentorship programs to ensure new hires feel integrated into both the company and Canadian culture.

Be prepared for the risk of it not working out: The regulatory system assumes that foreign workers will remain with their sponsoring employer. However, if a hire turns out to be a poor fit, employers have limited options, often leading to sunk costs.

Strategies for businesses to keep in mind amid labour challenges

Solving the auto care industry’s skills shortage requires a multifaceted approach. While global talent recruitment plays a role, businesses must also adopt long-term strategies such as apprenticeships and process adaptation to ensure sustained success.

Invest in apprenticeship programs

Apprentices are the industry’s future. Yet, the auto care sector struggles with a 50 per cent dropout rate. Businesses need to invest in both apprenticeship recruitment and leadership development to ensure apprentices are mentored, supported, and see a clear path to success.

Improve internal processes

Reviewing workflow, task allocation, and efficiency can alleviate pressure on short-staffed teams. Organizing work to maximize existing talent and adopting process innovations can improve productivity without overburdening employees.

“Take inventory of your own system and processes. Remove your constraints, and do not wait for the government to intervene. You will never hit optimization if you do not rethink how you do business.” said Paul Prochilo.

Leadership accountability

Employers should assess their internal leadership’s ability to mentor and develop talent effectively. Poor leadership is a key driver of apprentice attrition. Implementing leadership certification or training can ensure frontline managers are equipped to support their teams.

Macro policy advocacy

The industry must actively advocate for immigration policies that reflect real labour market needs. Current policies do not adequately account for the essential nature of automotive repair in sustaining transportation infrastructure. Engaging with policymakers through associations can help shape immigration frameworks that better serve the industry.

“Part of the issue is the way jobs are evaluated. If you look at the points system—are they [jobs in the industry] considered high-skill jobs? The system has been created by academics who do not understand how industries fit together and what is required of those to work in automotive.” said Susan Mowbray.

Diversify recruitment approaches

There is no silver bullet. Businesses should diversify by tapping into local talent, reskilling workers, collaborating with vocational institutions, and strategically using immigration for specialized roles.

Moving forward

Businesses should not see immigration as a quick fix but as a component of a long-term, multifaceted strategy to ensure long-term business success. Recruiting is not about finding a perfect solution but deploying multiple tactics and constantly adapting. For organizations willing to innovate and invest in both people and processes, there is a path forward.

This blog has been created based on the panel discussion, Labour market: Is immigration an answer to labour challenges? which was moderated by James Channer, who was joined by Karim Mouldi, Paul Prochilo, and Susan Mowbray, at the 2025 edition of the AIA Canada National Conference at the Canadian Auto Care Industry Conference.