While the U.S. auto market is steady, it isn’t growing as fast as the industry would like. While the economy continues to boom, alternative mobility and the sharing economy continue to cause concern in the auto industry. For the time being, however, the industry is seeing growth and is expecting this trend to continue for some time. So what is driving this growth? And how can we ensure it will continue? Here are a few answers to that question.
As the automotive industry continues to shift from a competitive environment among peers to a more open ecosystem, its revenue pool is likely to grow substantially. By 2030, the industry’s revenue pool will expand from traditional car sales and aftermarket products to include data-driven services. This growth, analysts predict, will add $1.5 trillion to the industry’s revenue pool, compared to just $3.5 trillion in 2015.
The report highlights the importance of the automotive industry to the U.S. economy, citing the industry’s extensive interconnectivity with other elements of the fabric of the U.S. economy. In addition to manufacturing, the report also discusses national and regional employment, research and development, state and local government revenues, U.S. trade, and quality of life. The automotive industry also contributes to the quality of life for millions of people.
In 2016, the number of people employed in the automotive industry reached 1.7 million. The industry is a major consumer of goods and services and contributes to almost eight million net jobs in the United States. It supports 4.5 percent of U.S. jobs, and is responsible for $50 billion in tax revenue. However, the industry’s growth is not as high as many would like it to be. A few factors can influence the future of the industry.