It appears that the automotive industry, as well as many related industries, is doing quite well these days. In China, Novelis opened the country's first plant devoted to the manufacturing of heat-treated aluminum automotive sheet. The company has headquarters in Atlanta, and it comes as no surprise that the automotive industry is soaring in the United States as well. In fact, data predicts that more than 16 million automobiles will be sold in 2014, which exceeds the level that many analysts thought the industry would never reach again. However, as with all things good, there are challenges to be faced.
The development of new houses in Nevada is still lagging. This directly influences the sales of large trucks, which, of course, are an essential source of profit for many automotive manufacturers. So, even with truck sales increasing quite steadily, there is no denying that an increase in new housing starts will boost the automotive industry, especially truck sales, to an even more profitable level.
Another factor that fosters a challenge within the automotive industry relates directly to student loans. Young consumers, who used to be renowned for buying automobiles both during and after college, are now bombarded with student loans, with many of them choosing to pay back their loans instead of purchasing an automobile. And this especially applies to students who have found it difficult to secure full-time employment after graduation.
From the year 2011 all the way through 2024, there is an expected 79 percent growth rate in the automotive gross regional product, which will lead to it becoming an industry worth nearly $5 billion. This will likely result in the automotive employment industry growing by at least 19%.
The state of Ohio houses the second-highest number of larger automotive suppliers in the United States. Tom Waltermire states that Ford relocated two of its plants from Mexico to Avon Lake, and due to the strengthening of the supply chain that is taking place, Borger USA, as well as other companies, are securing undertakings in the Northeast Ohio area.
In Northeast Ohio alone, there were more than 24,000 people employed in the automotive sector. That number has risen by eight percent in three years. The automotive gross regional product has enjoyed a 15-percent gain, and predictions are continuing to look up.
One challenge that most automotive dealerships are not facing is securing low-interest financing options for their customers. Leasing options are also seeing an increase. These behaviors are greatly contributing to the growth of the automotive industry.
Although great strides are being made within the industry, manufacturers still need to identify and implement new ways of streamlining their processes; this provides exceptional support in reducing expenses throughout all of their dealer networks as well as their supply chains. It is believed that information and communication technologies (ICTs) will provide dealerships and manufacturers with a way to keep the automotive industry on the rise.
ICTs provide a bird's-eye view of expected production times and delays. By analyzing these automotive components, forecasting and accurate planning of all automotive processes, including supply and demand, can be optimized to ensure that the industry adds value to the economy.
The technology side of ICTs enables manufacturers to synchronize production operations and improve their planning and control. This combined with the information side of ICTs allows them to not only reduce operational expenses but also improve the quality of their products too.
At the core of any automotive manufacturing operation, data has to be collected and analyzed. By using today's core technology systems, the auto industry is seeing huge improvements in its overall vitality. Dealers are extending their hiring efforts, and this has led to the employment of more than 1 million people in the auto industry alone, something that hasn't happened since the Great Recession.
For auto manufacturers who favor the production of electric cars, they are experiencing some of today's most extensive challenges. Many consumers favor electric cars over hybrids. They are also heavily subsidized, providing manufacturers with tens of millions of dollars in credits. But on the downside, electric cars come with limitations. The limitation many consumers complain about is long charging times.
With a quick look at today's automotive news, it's clear that the industry is booming. Still, there are obstacles to be overcome. And when they do, the industry will likely see massive growth like never before.