Solving Workforce Shortages in the EV industry with Global Talent
Recently, the U.S. Department of Energy (DOE), through the Office of Manufacturing and Energy Supply Chains (MESC), announced $50 million in funding for six states with significant automotive workforces. This funding aims to help small and medium-sized suppliers adapt their manufacturing facilities for the electric vehicle (EV) supply chain, thereby preserving good-paying, union jobs in traditional auto communities. Tennessee is one of these six states, receiving an investment of $4.5 million.
This initiative is expected to significantly boost the rapid growth of the EV industry in the U.S., particularly in these six states. However, as the EV industry expands, a critical question arises: How do we address the shortage of a skilled workforce for this evolving industry?
Many experts suggest that fostering a diverse workforce could be an effective solution. This approach allows manufacturers in the U.S. to tap into a broader talent pool. However, even the talent pool within the U.S. is not sufficient, so the search for skilled labor must extend globally. This brings us to the topic of hiring foreign skilled workers, which we will explore in this article.
Key Positions in Demand
Skilled electricians are vital for installing and maintaining the electrical infrastructure in EV manufacturing plants, as well as in charging stations and other related facilities. They ensure that all electrical systems comply with safety standards and operate efficiently.
Electrical Engineers
Responsible for designing and developing electrical systems in EVs, these engineers are crucial for enhancing battery efficiency and vehicle performance.
Software Developers
As vehicles become increasingly connected, skilled software developers are needed to create applications that improve user experience and vehicle functionality.
Manufacturing Technicians
Essential for assembling EV components and ensuring quality control in production.
Utilize advanced analytical techniques and machine learning to extract insights from complex datasets. In the EV industry, they help improve predictive maintenance, optimize battery usage, and enhance autonomous driving algorithms.
As demand for EVs increases, effective supply chain management becomes critical. Professionals who can navigate global logistics challenges and ensure timely delivery of components are in high demand.
Process Engineers: Process engineers design, implement, and optimize manufacturing processes for EV components. They work on improving production efficiency, reducing waste, and ensuring that processes meet safety and quality standards.
Potential Labor Markets for Foreign Skilled Workers
When hiring globally, the pool of candidates becomes vast. However, a potential labor market, in this context, refers to a skilled workforce that meets the requirements of EV roles currently in shortage. This workforce is characterized by their education, experience, and expertise. Additionally, the opportunity to work and live in the U.S. is attractive and promising for many of these professionals, increasing their interest in relocating despite the complexities of the process.
So, which labor markets are most promising?
India: Known for its strong engineering background and software development skills.
China: Home to many innovative EV startups and advancements in battery technology.
Canada: Offers a well-educated workforce with experience in technology and engineering, particularly related to EVs.
Mexico: Proximity to the U.S. and a growing number of skilled workers in manufacturing and engineering.
South Korea: Renowned for its advanced technology sector, South Korea produces highly skilled engineers and researchers, particularly in battery technology and electronics. Companies like Hyundai and LG Chem are at the forefront of EV innovation, making South Korean professionals valuable assets to the industry.
Vietnam: With a rapidly growing education system emphasizing STEM fields, Vietnam is producing a new generation of engineers and technicians. The country is becoming a hub for manufacturing, and offers a strong, adaptable workforce eager to learn.
These countries generate a significant number of professionals who can contribute to the growth of the EV industry.
Sponsorship Visas for Hiring Foreign Workers
To hire foreign skilled workers, U.S. employers typically use specific sponsorship visas, which allow companies to bring international talent to fill critical roles. Each visa has specific rules regarding how long a worker can remain in the U.S., which can impact hiring plans and long-term workforce strategy. Some of the most common visa options include:
1. Non-Immigrant Visas
H-1B Visa
This allows U.S. companies to employ foreign workers in specialty occupations requiring theoretical or technical expertise, commonly used for positions in engineering, IT, and other technical fields. The initial duration is up to 3 years, with the possibility of extending for an additional 3 years, for a total maximum of 6 years.
Further extensions are possible if the worker is in the process of obtaining a green card (permanent residency). After reaching the 6-year limit, the worker must leave the U.S. for at least one year before reapplying for a new H-1B visa unless they qualify for extensions due to a pending green card application.
L-1 Visa
This for intra-company transferees working for a multinational company, allowing them to transfer employees from a foreign office to a U.S. branch. The L-1A Visa, for managers and executives, has an initial duration of up to 1 year for new offices or 3 years for existing offices, with extensions available in increments of 2 years, up to a maximum of 7 years.
The L-1B Visa, for employees with specialized knowledge, also has an initial duration of up to 1 year for new offices or 3 years for existing offices, with extensions available in increments of 2 years, up to a maximum of 5 years.
TN Visa
Under the United States-Mexico-Canada Agreement (USMCA), this visa allows citizens of Canada and Mexico to apply for TN visas for specific professional roles. The initial duration is up to 3 years, with the possibility of indefinite renewals in 3-year increments, provided the worker maintains non-immigrant status and the job position continues to qualify under the TN visa rules.
2. Immigrant Visas
These visas allow foreign workers to live and work permanently in the U.S. if approved.
This visa is for foreign nationals with advanced degrees or exceptional ability in their field. This employment-based immigrant visa is ideal for companies looking to hire highly skilled professionals in specialized roles, such as engineering and technology and those roles requires an advanced degree (Master or above).
EB-3 Visa (Professional and Skilled Workers Subcategory)
It’s suitable for positions requiring at least two years of experience or training or a bachelor's degree, making it a viable option for filling both mid-level and high-level positions in the EV industry.
For both EB-2 advanced and EB3, it allows foreigner workers to remain in the U.S indefinitely, provided they maintain their status. Employers must provide evidence that there are not enough qualified U.S. workers available for the job and must obtain a labor certification from the Department of Labor.
On-going challenges
A significant obstacle in hiring foreign skilled workers is the backlog of applications waiting for visa availability. As of November 1, 2023, there are 153,864 pending applications in the EB-2 (Advanced Degree) and EB-3 (Skilled Workers) categories worldwide. This number likely underrepresents the total, as it does not account for the considerable volume of applications held at USCIS offices.
Before the visa bulletin retrogressed, the process was much faster, allowing foreign workers to come to the U.S. and start working for employers in an average of 1 year or even less. However, due to recent changes, foreign workers now face wait times ranging from 2 to 15 years or even longer to complete their visa process and begin working in the U.S. These delays depend on various factors, including visa category, country of birth, and individual circumstances, and so on.
The H-1B visa process is generally faster, but it operates on a lottery system, limiting the number of visas granted each year. In FY 2024, approximately 780,000 applications were submitted, yet only 85,000 visas were available, creating fierce competition.
Given these challenges, finding a more flexible solution is essential.
Partner with a Specialized Staffing Agency
To address both short-term and long-term workforce demands in the EV industry, partnering with a specialized staffing agency can be highly effective. A staffing agency with expertise in the automotive sector and a focus in the EV industry can help you navigate the complexities of hiring foreign skilled workers. They can assist with sourcing top talent from global labor markets and ensuring that your staffing needs are met efficiently and effectively. By leveraging their expertise, you can focus on driving your business forward while they handle the recruitment challenges.
Once you are ready to share your hiring needs, schedule a free consultation with an expert.
