Wage and salary jobs in automobile dealers are projected to increase 13 percent over the 2002-12 period, compared with projected growth of about 16 percent for all industries combined. Growth in automobile dealers strongly reflects consumer confidence and purchasing habits. The structure of dealers, the strength of the Nation’s economy, and trends in consumer preferences will influence the employment outlook for this industry.
Over the 2002-12 period, population growth will increase demand for passenger cars and employment in automobile dealers. Growth of the labor force and in the number of families in which both spouses need vehicles to commute to work will contribute to increased vehicle sales and employment in this industry. As personal incomes continue to grow, greater numbers of persons will be able to afford the luxury of owning multiple vehicles, which also should increase sales. However, the penchant for the public to keep vehicles for many more years than in the past may have a dampening effect on motor vehicle sales. New and used car dealers may also face increasing competition from online electronic auctions that facilitate consumer-to-consumer and business-to-consumer trade in new and used goods, including vehicles.
The trend towards dealer consolidation should have a minimal effect on the industry because of continued demand for vehicles and related services. Dealers will always need well-qualified people to work in the various departments of the dealer. In an effort to achieve greater financial and operational efficiency and flexibility, greater emphasis will be placed on aftermarket services, such as financing and vehicle service and repair.
Growth in leasing agreements and rental companies will continue to provide quality vehicles to the used car market, thus providing for future employment growth. Some large used car dealers offer low-hassle sales on large inventories of popular vehicles. Such dealers typically contract out warranty and other service-related work to other dealers or to satellite service facilities, reducing the demand for workers in these departments.
The need to replace workers who retire or transfer to other occupations will result in many job openings for sales workers in automobile dealers. In addition, as consumers’ expectations and demands continue to increase, dealers will seek more highly educated salespersons. Persons who have a college degree and previous sales experience should have the best opportunities. If alternative sales techniques and compensation systems, such as using salaried noncommissioned sales professionals, become more common, the greater income stability may lead to less turnover of sales jobs.
Opportunities in the service and repair sectors of this industry should be plentiful, especially for persons who complete formal automotive service technician training. The growing complexity of automotive technology increasingly requires highly trained service technicians to service vehicles. Most persons who enter service and repair occupations may expect steady work because changes in economic conditions have little effect on this part of the dealer’s business.
Opportunities in management occupations will be best for persons with college degrees and those with considerable industry experience. However, consolidation of dealers will slow the growth of managerial jobs. Competition for managerial positions will remain relatively keen.