The commercial vehicle industry in the UAE is currently witnessing tremendous growth driven by the strong economic fundamentals and robust business environment in the region. The industry has indeed registered significant growth. Increased government spending on large infrastructure projects across the Emirates will drive further growth in the construction sector and in the wider economy – in sectors such as logistics, hospitality and retail.
These remarks were made by Mr. Herbert Lonsdale, Head of International Business Development at the Institute of the Motor Industry (IMI), while delivering the opening speech at the Automechanika Academics Commercial Vehicles Conference 2015 organised by Messe Frankfurt in Dubai.
According to Mr. Herbert, the UAE is the regional leader in commercial vehicle sales, with Frost & Sullivan estimating that truck and bus sales will grow by 8.7 per cent by 2017. The number of commercial vehicles on the roads is likely to reach 1.42 million by 2017. This represents a compound annual growth rate of 6.9 per cent.
The growth of the commercial vehicle market with both new and used vehicles will boost the demand for spare parts estimated to reach $3.65 billion by 2020.
According to him, the International Monetary Fund (IMF) has asserted that the UAE is uniquely placed to strengthen its growth prospects, underpinned by the recent surge in industrial activity. And, of course, the Expo 2020 win by Dubai will also further boost industrial activity. The commercial vehicle sector is at the heart of this rapid industrial development.
However, increases are not limited to numbers alone. With the growth of the sector comes the danger of more accidents, loss of life and a greater need to ensure worker safety and the road-worthiness of commercial vehicles.
In the UK, for example, an operator’s license or O license is the legal authority needed to operate goods vehicles. In addition to ensuring legal compliance, all vehicles require a Safety Inspection every 4-6 weeks performed by a competent service provider. These inspections are a way of ensuring a robust preventive maintenance programme, confirming that vehicles are maintained efficiently, maximising profitability, minimising downtime and breakdowns and, most important of all, making vehicle and driver safety a priority.
Mr. Herbert further observed that an independent, renewable and voluntary accreditation scheme also has gained wide recognition with truck and bus OEMs, private operators and service workshops. The scheme assesses the knowledge and skill of technicians who maintain and repair commercial vehicles and ensures that the technicians are currently competent and operate ethically. Licenses are offered at four benchmark career levels and last for five years.
With so many projects underway or planned in the Middle East comes a heightened need to ensure worker safety. IMI supports the need for firms to remain vigilant about safety and maintenance and ensuring that training programmes are kept up-to-date and meet the international standards.
Aside from the tragic loss of life, accidents are costly and cause project delays and dent a company’s reputation as well as workforce morale.
Looking to the future, he said, the key to improving levels of technical competence for employers in the commercial vehicle sector is to have a pipeline of young people in vocational education who are motivated to join the industry as a great career choice, and adult learners who are encouraged to continuously update their technical skills in an industry where technology is changing at a very fast pace.
The UAE has recognised that there is a growing gap between the education achieved by the population and the skills needed by employers. The National Qualification Authority has, as its primary role, to develop national qualifications which meet the needs of employers. This includes the development of NATIONAL OCCUPATIONAL Standards and sector advisory committees to increase the employability skills of the population, and for us in the wider automotive sector we hope, will help to dispel the myth that working in our industry is not a good career for bright and trained people, he added.
IMI is the world’s only automotive professional body and awarding organisation dedicated exclusively to the international automotive sector. Through special qualifications, accreditations and other certifications, IMI promotes professional standards, impartially recognising individuals and corporates who meet the international automotive standards and best practice.