The global automotive industry is often misconceived to be slowing down or even receding. Most onlookers assume that the entire economic sector is moving collectively in the same direction, or reacting with the same responses.
However, rarely does such a thing happen. Individual manufacturers and supply chains invest according to their own plans, pursuing individual strategies, seeking different opportunities, introducing unique technologies, answering to distinct shareholders and customers with unique outlooks. Hence, rarely does the global auto business move in tandem when chasing opportunity.
As the global automotive industry shifts towards new and more advanced technology, current components of vehicles will soon be rendered obsolete.
At the moment, keeping monthly sales of new-vehicles aside, diverse trends are generating jobs and investment alongside local economic development activity around the world. A few of the changing trends seen today are:
1) The push for lighter-weight parts, materials and vehicles are causing manufacturers to invest in new processes, new plants often in new locations.
2) The advent of electrification has stirred up a storm among several automakers which are scrambling – not merely for electrified components and vehicles, but for entire electric vehicle strategies. More importantly, in which country should they be produced, and with what supply chain?
3) The rising competition for advanced autonomous-drive technologies is requiring a new universe of research and development resources. In light of the same, automakers, as well as their supply chains, are demanding pools of new engineers opening up tech centres where they are available.
4) There is widespread disruption of industry business models – due to the sobering notion that future mobility services could render ordinary components like steering wheels and instrument panels obsolete. This has forced numerous manufacturers to rethink their entire product portfolios. Producers are simultaneously designing the next decades’ revenue generators and urgently imagining ways to rethink the production of their older technologies.
Alongside such a massive transformation, nations, states, provinces and municipalities have understood that there is always opportunity.
In terms of investment, a swirl of investors, inventors, innovators and marketing officials is taking place all with a single aim to create wealth. One manufacturing plant slows down, another plant speeds up. An unused industrial building attracts a new owner in a new segment. One global company changes its course and another company steps into its vacancy to make a go of it.
Alongside such a massive transformation, nations, states, provinces and municipalities have understood that there is always opportunity. And benefiting from the activity is only a matter of getting themselves involved and being ready for it.
Government leaders around the world are keenly aware of the next business cycle where investments from automakers, suppliers, technology providers, research and development entities, logistics companies and raw material producers are expected to pour in. Hence, billions more in new factory spending and new generations of jobs are in the offing for communities and nations.
All of this transformation entails work – roads, real estate, infrastructure, factories capital equipment, jobs, worker training, services and administration.
From a distance, as simple as it may seem, automobiles do no spring magically from the mind of the designers. The efforts by communities are paid for by the international flow of capital, fostered by nations and facilitated and supported by both public and private initiatives. Ultimately, a win-win for all concerned: a location attracts auto industry investment. The investment thrives and the location itself thrives in return.