Employment opportunities for heavy equipment automotive engineers are influenced by the number of heavy vehicles registered in New Zealand, the agriculture industry, fluctuating petrol and diesel prices and a decrease in the demand for vehicle parts.

Demand for experienced workers due to growth in heavy vehicles

In June 2006, the Department of Labour reported a need for experienced heavy equipment automotive engineers due to an increase in the number heavy vehicles in New Zealand. From 1998 to 2003 the number of registered trucks grew by 2.2% each year. And the Ministry of Transport expects the number of heavy vehicles in New Zealand will rise by 38% between 2000 and 2015.

This growth in heavy vehicles is due to an increasing need for land freight transport. New Zealand’s low population density, geography and commodity-based economy makes it highly dependent on road transport. Heavy vehicle transport is also seen as an important intermediary between air, rail and shipping transport, and this sector plays an important role in export trade.

Exports influence demand for heavy equipment automotive engineers

The agriculture industry is a key user of heavy vehicles, particularly tractors, bailiffs and mowers. Farm incomes influence the number of heavy vehicles farmers buy and whether they regularly repair their vehicles. Farm incomes are currently growing due to farmers exporting more goods at a higher price. Between February 2006 and February 2007, there was a 9.7% increase in the sale of commodities such as milk and meat. However, the agriculture industry and farm incomes are cyclic due to changing market needs, the exchange rate and the weather.

Fluctuating fuel prices

The heavy equipment industry is also influenced by diesel prices. High fuel prices means owners and drivers of heavy equipment are spending more on diesel and less on the regular maintenance of their vehicles. Vehicles are now fixed when they breakdown decreasing the demand for heavy equipment automotive engineers.

Demand for vehicle parts

Heavy vehicle owners are also more likely to replace than repair parts due to the decreased cost of vehicle parts. This is reflected in the decrease of machinery and equipment parts imported into New Zealand between February 2006 and February 2007.

Advances in technology also means vehicles require less servicing than previously. This is decreasing the demand for heavy equipment automotive engineers.

Despite demand for experienced workers, limited apprenticeships are available

The small number of apprenticeships and training schemes offered in the past was primarily due to a downturn in the economy. This resulted in a limited of number of apprentices being employed. During an economic downturn employers can not afford to employ apprentices as there is not enough work for them to do or not enough money to pay them.

Currently it can take two or more years for graduates of pre-trade automotive courses to find employment as an apprentice. Many people have to complete work experience in heavy equipment companies before being offered an apprenticeship. This difficulty may be due to a growth in the number of people interested in qualifying as a heavy equipment automotive engineer. The Department of Labour recorded 192 newly qualified workers in 2005, double the number recorded in 2001.

Growing level of specialisation

Modern diesel vehicle engines are more sophisticated and contain more electronic components than many older models. This means heavy equipment automotive engineers need to have a wider range of skills than previously, including knowledge of how electronic parts work and how to repair them. As a result, many heavy equipment automotive engineers now specialise and work on particular vehicles.

Turnover moderate

Turnover among heavy equipment automotive engineers is moderate due to high salaries and good promotion opportunities. Some heavy equipment automotive engineers leave this occupation because the work is physically demanding. Most heavy equipment automotive engineers stay within the heavy equipment and transport industry but move into roles such as automotive engineer or transfer their skills to other industries such as aviation or hydraulics.

(Written 30/03/2007)

Sources:

• Department of Labour. ‘Diesel Mechanic Skills Shortage Survey’. June 2006. (www.dol.govt.nz).


• Statistics New Zealand. ‘Overseas Merchandise Trade – February 2007’. (www.stats.govt.nz).


• Transport Engineering Research New Zealand Limited. ‘Profile of the Heavy Vehicle Fleet’. (www.landtransport.govt.nz).