Job opening ratio in the automotive maintenance industry reaches 4.55, with mechanic shortages worsening nationwide - Company expanding used car sales and maintenance nationwide collaborates with mechanic training schools, increasing enrolled students aiming to become mechanics by approximately 7.5 times in 7 years since partnership began -

Nextage Co., Ltd. (Representative Director, Chairman and President: Yasuharu Hirota, Headquarters: Nagoya City, Aichi Prefecture), which operates used car sales, purchases, and maintenance businesses nationwide, is promoting collaboration with mechanic training institutions and the recruitment and training of foreign nationals as measures to address the shortage of automotive mechanics.

At Toki Gakuen Educational Foundation, with which our company partners, the number of enrolled students has expanded from approximately 60 at the start of the partnership in 2019 to about 450 currently, an increase of approximately 7.5 times. Furthermore, the number of graduates from the school who have found employment with our company has increased by approximately 25 times compared to 2021.

Currently, foreign mechanics from 12 countries are active at our maintenance bases nationwide, and their numbers have increased by approximately 2.4 times in 5 years. Foreign mechanics now account for approximately 30% of all mechanics.

[Job opening ratio in the automotive maintenance industry reaches 4.55, with mechanic shortages worsening nationwide]

In Japan, labor shortages are a challenge in many industries due to the aging population and declining birthrate. In the automotive maintenance industry, securing and training mechanics is a critical issue, driven by a shortage of young workers and the increasing sophistication of maintenance technologies.

The Ministry of Land, Infrastructure, Transport and Tourism points out that while the technologies required for maintenance are becoming more advanced due to the spread of electric vehicles and advanced safety technologies such as pre-collision braking systems, the number of young people aspiring to become automotive mechanics is decreasing. Furthermore, the job opening ratio for automotive maintenance workers is reported to be 4.55, indicating a worsening shortage of mechanics across the industry.

Against this backdrop, attention is growing towards initiatives for sustainable human resource acquisition, such as collaboration with mechanic training schools and the recruitment and training of diverse personnel, including foreign nationals.

[Enrolled students aiming to become mechanics have increased approximately 7.5 times in 7 years since partnership began]

In response to the mechanic shortage, our company is advancing its collaboration with Toki Gakuen Educational Foundation. At the school, the number of enrolled students, which was approximately 60 at the start of the partnership in 2019, has now expanded to about 450. The foundation for nurturing individuals aiming to become mechanics is broadening.

Additionally, the number of graduates from the school who have found employment with our company has increased approximately 25 times compared to 2021. We are strengthening our recruitment and training system through collaboration with educational institutions to foster personnel who can immediately contribute in the field after graduation.

Currently, foreign mechanics from 12 countries, including Nepal, Vietnam, and Sri Lanka, are active at our maintenance bases nationwide. The number of foreign mechanics has increased approximately 2.4 times in 5 years, now accounting for about 30% of all mechanics.

The active participation of personnel from diverse nationalities and backgrounds at our sites not only stabilizes our maintenance system but also yields benefits in terms of skill transfer and organizational revitalization.

Actual employees have shared the following feedback:

"Thanks to the foundation I built at Toki Gakuen, I can proactively take on challenges in a field that demands high technical skills, with a desire to 'learn more.'"

"I was entrusted with tasks immediately after joining the company and was able to contribute as a ready-to-use asset. The opportunity to experience working on various car models from my first year is also appealing. My goal is to obtain an inspector's license and further expand my scope of work."

[Nextage Business Details]

Nextage operates used car sales, purchase, and maintenance businesses nationwide. We provide integrated services from vehicle sales to after-sales services such as vehicle inspections, regular maintenance, general repairs, and breakdown repairs. To ensure stable maintenance services, we consider the acquisition and training of mechanics as a critical management issue.

Therefore, in addition to collaborating with mechanic training institutions, we are implementing support for obtaining certifications, technical training, and Japanese language education, striving to create an environment where mechanics, including foreign nationals, can build long-term careers.

We are also working on improving our systems for recruiting and retaining mechanics, such as increasing certification allowances and establishing new special long-term leave.

[Future Developments]

Labor shortages in the automotive maintenance industry are expected to continue in the future. Our company will continue to strengthen its partnerships with mechanic training schools to foster and recruit excellent mechanic personnel.

Furthermore, through promoting diversity, including the recruitment and training of foreign nationals, we aim to achieve both the creation of a workplace where everyone can thrive and the improvement of technical capabilities, thereby building a sustainable maintenance system.

We will continue to work towards realizing "a car dealership loved by everyone" by providing services that allow customers nationwide to use their cars with peace of mind.

If you would like more detailed information on this matter, please feel free to contact us as we are accepting interview requests from the media at any time.

[Reference Materials]

Ministry of Land, Infrastructure, Transport and Tourism "Compilation of Measures to Solve Issues Related to Automotive Maintenance Personnel, Moving to the Execution Phase!!"

https://www.mlit.go.jp/report/press/jidosha09_hh_000300.html

Statistics Bureau of Japan "Statistical Topics No. 146: Japan's Elderly Population as Seen Through Statistics - In Commemoration of "Respect for the Aged Day" -"

https://www.stat.go.jp/data/topics/topi1460.html

Ministry of Health, Labour and Welfare "Employment Referral Situation: December 2023 and Full Year 2023"

https://www.mhlw.go.jp/stf/newpage_37525.html

[Company Profile]

Name: Nextage Co., Ltd.

Address: Chunichi Building 15F, 4-1-1 Sakae, Naka-ku, Nagoya, Aichi Prefecture, 460-0008

URL: https://www.nextage.jp/

[Toki Gakuen Educational Foundation Profile]

Name: Toki Gakuen Educational Foundation

Overview: An educational foundation operating two vocational schools that train automotive mechanics.

School 1: Chubu Kokusai Jidosha Daigakko Vocational School

Address: 2-7 Hida Asano Asahi-cho, Toki City, Gifu Prefecture

URL: https://www.a-tec.ac.jp/

School 2: Kita Nihon Jidosha Daigakko Vocational School

Address: 118-132 Kamiashibetsu-cho, Ashibetsu City, Hokkaido

URL: https://www.a-tec.jp/