But one industry that is doing especially well is the automotive sector, which will no doubt raise the bar for the rest of the manufacturing sectors across the board.
All of this began back in 2009 when auto parts manufacturers suffered a decline in sales due to the economic downturn so production of cars slowed. But in 2010, the public’s demand for vehicles rebounded. This meant an increased production of auto parts.
Fortunately, this trend is continuing, meaning that “industry revenue is expected to increase at a significant annualized rate over the next five years.” Everyone knows of the auto industry’s down turn in previous years–especially General Motors and Chrysler. But their decline was due to pre-existing conditions, such as high labor costs and excess production capacity.
Now, even though labor costs are still fairly high, demand is booming, and continued innovation in the world of auto manufacturing is driving more and more growth in that sector, and in manufacturing at large. IBISWorld believes that by 2019. “a full automaker recovery will drive industry growth.” They have also projected the increase of new car sales at an annualized rate over the same period as consumer opinion rises.
Though this is great news for the automotive industry, there has been more exciting news announced.
As of 14 March, Google executive members began to discuss their role in a digital future of the auto industry. As the Michigan publication says, “Google has recently made waves in the automotive industry by not only working with automakers, but also showcasing its autonomous vehicle technology.”
Google would play a part in making the car safer and more intuitive.
Having Google help create better and safer cars will only further the notion that there will be greater long-term benefits from the rise in production of automobiles. An industrial rebound in the manufacturing industry is one thing. But coupled with tech innovators like Google, the progress seen in auto manufacturing over the next few years could end up being absolutely incredible.