Skills shortage could stymie future growth

Two stories are featured in this issue which serve to highlight not only the fine contribution made to this industry by two of the trucking industry's leading players but also a serious problem facing the sustainability of the service side of the industry. Let's visit first the opening of the new Mercedes-Benz Commercial Vehicles Durban dealership - a R55-million investment by NMI-Durban South Motors which is owned jointly by Barloworld Motors and The Akoo Family Trust. Guest of honour and the man who officially opened this facility was none other than Dr Klaus Maier, whose official tile on his business card reads: Executive Vice President, Commercial Vehicle Division, Head of Business Unit Trucks, Europe/Latin America, DaimlerChrysler AG. Break this down an in essence we're dealing here with a 'groot maga' in the DaimlerChrysler AG worldwide organisation.

Commenting on the dealership, Maier gave it high praise saying he wished they had something similar in Germany. This was a great tribute to the vision of our local businessmen. He then went on to comment that this was his first visit to South Africa and what he had observed was that this truly is an international market. "I say this because during my short stay here, I have seen all the brands of the world operating here. I won't say you need all the brands but they are here - and there's still more to come. It is obvious to me that this is a place where everyone likes to sell trucks." You're so right Dr Maier. Everyone does like to sell trucks here - and you're also right in saying there will be more to come. Tata, for one, is planning to launch its Novus range of heavy commercial vehicles which it previewed at Auto Africa last year. And with the way China is going, I reckon it's only a matter of time before FAW takes off from its perch in Kempton Park with some new models in the heavy segment. But that's just a guess.

The point is, from a mere seven players during the sanctions era, this has expanded to the point where we are one of the few markets in the world which can boast - if that's an accurate sentiment - of having the products of every truck manufacturing continent represented here. South Africa truly has become an important market on the international stage and this not only for truck sales. The full extent of how this market is viewed was brought home when a senior member of Hino's management team told FleetWatch during a visit to Japan that they would be looking at South Africa to gauge how the Hino 700 Series fared against other makes from around the world. If it did well here, that could well act as the catalyst for Hino to enter the home markets of those competitors. So it's not only sales that companies look at - although this is Nissan Diesel Japan's most important export market and the second biggest export market for CKD units for Mercedes Benz.

But, here's the crunch. While manufacturers and suppliers have been doing a great job of either getting into or expanding their presence and operations in this market, the industry as a whole has failed dismally in gearing up to service the expansion and growth by attracting youngsters into the industry. There is a dire skills shortage - not only of diesel mechanics but right across all disciplines - and it's common to the entire industry. And if one thinks it's bad now, consider this: At the Car of the Year banquet held in Johannesburg earlier this year, Ronnie Watson, CEO of Wesbank, predicted that the growth in vehicle sales across the board will continue to rise with vehicle sales reaching 573 000 this year - up 19% over last year's sales of 482 233 which, in itself, was a highly unexpected 26% rise over 2003 sales. He then predicted that sales will reach 630 000 in 2006 and that this growth trend will continue for the next five years, with vehicle sales attaining the level of 900 000 by 2010. Watson placed his upbeat comments on vehicle sales within the context of what he believes will happen to the South African economy over the next five years. He predicted that by the year 2010, the taxi recap programme will have been bedded down. Our inflation rate will be 3%, having stayed within the range of 3 - 5% for the last five years. The economy will continue to grow between 4% and 5% for the next five years and will break the 6% barrier in 2010. "Black economic empowerment will have been a stunning success with the black middle class becoming the powerhouse of our economy. Unemployment will be reduced and the rate of HIV infection will have been turned and will be declining. Basic sanitation and water will be available to all and our water will remain among the purest in the world," he said.

At the end of his upbeat speech, Watson asked a most pertinent question: "Is your business geared up and optimistic about the future?" One thing is for certain, while manufacturers and suppliers will welcome the news of rising sales, the South African trucking industry as a whole is nowhere near geared up to handle such an optimistic future. It is not even geared up to handle present demands. It's great news that growth lies ahead but the bad news is that all these new vehicles are going to have to be serviced - and we're battling to deal with even the current vehicle population. This was confirmed by Ronald Vinayaka, service manager of the new Durban dealership who said that he was feeling the pinch of the skills shortage. "We have 15 diesel mechanics but I need 20," he told me.

Let's cross over now to Rosslyn outside Pretoria when Nissan Diesel SA has opened a new training Academy. Like the new Durban dealership, Nissan Diesel also gets a firm pat on the back for this fine initiative. However, while welcoming the Academy, Peter English, dealer principal of McCarthy Commercial Vehicles in Boksburg North and chairman of the Nissan Diesel Dealer Council, expressed grave concern to FleetWatch about the number of people entering the industry - or more accurately, not entering the industry. "The major problem is that we are not attracting young people. We need to promote this industry as one that not only provides a job but rather a career," he said. It is my opinion that this industry - along with the government - has made a grave mistake by not zoning in on the present and future skills and training needs of what is an essential industry to the smooth running of this country. The economy can grow; truck sales can grow but if we don't have trained staff to man and service the growth of the trucking side of the economy, we'll end up with huge bottlenecks in commercial supply chains which could well stymie South Africa's predicted growth. Exaggeration? Not so. Just look at the current state of Spoornet to prove my point. We need to make this industry attractive to youngsters - and the need is urgent!

Patrick O'Leary
Managing Editor