There’s a lot involved in the auto industry. Many parts work together to bring us the vehicles and the technology in them that we enjoy today. If you’re looking to venture into the sector, it will help to know what goes on behind the scenes, as it’ll help you make informed decisions. Here’s what you need to know about the auto industry.
1. An Increase in Connected Vehicles
Connected automobiles link to the Internet of Things wirelessly. Equipped with capabilities that enable on-demand web browsing while in the car, they provide a convenient, safe, and cozy multimedia experience. Some of the features you’ll get with such a vehicle include turn-by-turn directions, 4G LTE Wi-Fi hotspots, vehicle health reports, remote diagnostics, and real-time alerts of potential problems with the health of the vehicle. With the help of maintenance and predictive intelligence technologies, the technology has already handled over a billion customer requests. It is expected to grow even more in 2023, something you should know about the auto industry if you plan to invest.
2. More Automakers Are Working With Tech Firms
The ever-changing technological needs of vehicles have led to collaboration between automakers and tech businesses. This is especially true for autonomous, connected, and electric cars, which depend on cutting-edge technology and specific software to operate properly. Manufacturers are working with tech businesses to create and develop the new operating systems required for the upcoming generation of technologically advanced automobiles to avoid making large and extremely costly investments in their technology divisions. As part of what you should know about the auto industry, you can anticipate more partnerships in 2023.
3. Growth in Self-Driving, Autonomous Vehicles
Unless you live under a rock, you probably already know that self-driving automobiles are now more popular than ever, and the trend will continue in 2023. According to Spyne, research has proven that autonomous vehicles increase safety, decrease downtime, increase last-mile delivery options, and provide 10% more fuel efficiency. Furthermore, several trucking businesses have experimented with self-driving technology. Soon, automatic truck fleets will coexist with conventional vehicles on the road, which is very interesting to know about the auto industry.
4. Bridging the Skills Gap
The lack of skilled workers is one of the largest issues you should know about the auto industry. The emergence of megatrends like electrification has led to a rise in the need for tech talent, but it has also rendered other positions obsolete, such as traditional engine assembly and service personnel. Hiring new talent may not be possible due to the industry’s inability to provide the kinds of compensation packages seen in the tech sector.
This means that reskilling the current personnel is imperative but will require a significant investment. In a similar vein, manufacturers will continue to face pressure from regulators to take significant steps toward long-term sustainability targets as they pursue decarbonization. However, they must compromise between fulfilling green requirements and their business goals.
5. Digital Transformation of Auto Repair Shops
In the increasingly digital world, one thing you should know about the auto industry is that customers anticipate all services, including foreign auto maintenance services, to be handled as seamlessly as purchasing from Amazon. This means the capacity to handle and finish transactions by going through a few steps that only involve tapping their phone screen. As a response, repair shops have begun incorporating vital communication capabilities into their shop management systems to improve customer service when performing car repairs.
You can expect to see an increase in vehicle repair businesses implementing auto repair software, enabling them to offer key digital capabilities consumers demand. Upgrading client touchpoints with features like text messaging, automated appointment reminders, real-time updates that include sharing images and videos, offering completely automatic payment options, and the capability to approve or refuse estimates from the comfort of their phones. Implementing these communication standards is essential for repair shops hoping to expand and increase sales in 2023. This is something you can’t ignore about the auto industry.
6. Investments in Retaining and Training Technicians
The technician shortage has significantly impacted the vehicle repair sector, something most people know about the auto industry. Fewer young technicians are joining the field and those who do frequently don’t receive sufficient training because many older, more experienced technicians are departing from the field, and turnover rates are still high. Investing in providing technicians with the necessary tools and training is vital for the industry. When referring to ‘tools,’ think of digital tools, such as software, that facilitate their job, allow them to maximize their efficiency and time, and obtain thorough insight into repairs.
Modern technician technologies include digital estimate creation, part lookup for a diesel AC part, internal communication capabilities, organizational tools, and even digital vehicle inspections. Simply put, technology makes operations more efficient. If you run an auto repair shop, integrating tech will be much appreciated by your workers, as they’ll see that you’re keen to make their job easier and better.
Digital tools can also help with technician training. With the right arsenal, you can monitor which areas your technicians require additional reinforcement. This enables you to proactively give them the targeted training to help them develop their skills and raise the production level in your shop. For example, if they’re struggling with BMW repairs, you can develop a program for developing their skill in that area. This way, they’ll feel that you value them and their input, which promotes retention.
7. Common Causes of Car Accidents
If there’s one thing that never changes about the auto industry, it’s accidents. Car collisions can result in unwanted outcomes, such as lifelong injuries, lost wages, etc. Then, why not try to avoid getting into one in the first place? To do this, you must be aware of the main reasons behind auto accidents, which will enable you to know what to do to avoid them when on the road.
The main contributor to auto accidents isn’t drunk driving, speeding, or running a red light by a criminal. In the United States today, distracted driving is the leading cause of auto accidents. You’re distracted whenever you take your eyes off the road to engage in activities such as texting, eating, or talking on the phone.
You don’t need anyone to tell you this, but driving at high speeds is dangerous. Out of ignorance, you’ve probably seen drivers on the freeway who go 10, 20, and occasionally 30 mph over the posted speed limit. Exceeding the speed limit is a surefire way to get into an automobile accident, where you could potentially die. The saying ”speed kills” will always remain true. When you’re driving too fast, your reaction time will be slower when you need to make emergency maneuvers to avoid getting into an accident.
Another common cause of road accidents is drunk driving. Drinking impairs one’s ability to concentrate and operate the vehicle optimally, making driving extremely risky. Every day, you’re almost sure that someone somewhere has caused a car accident because they were behind the wheel while drunk, even though it’s one of the easiest causes to avoid. Always designate a driver or take a cab when you’re out for drinks with your buddies. Otherwise, if you decide to drive yourself and get into a crash, your auto accident attorneys will have a hard time proving you’re not at fault, even if you’re truly innocent.
Another common cause of accidents is bad weather like heavy rains. The roads also get worse in bad weather. Rainfall creates slick, dangerous roads for cars, trucks, and motorcyclists, which increases the likelihood of automotive accidents. Rain can also cause your car to spin out of control or start skidding when braking. So when it starts pouring, be extra careful behind the wheel to avoid getting into such a situation.
8. More People Are Understanding the Benefits of Undercoating
There are numerous advantages to choosing the correct car undercoating service to shield your truck from rust, debris, and other types of harm. Applying the protective coating to your automobile’s underside can keep it in excellent condition for many years. The technique is also rather straightforward.
As you aim to understand more about the auto industry concerning truck undercoating services, here are some of the main benefits you should know about. The ability of car undercoating services to shield your car against rust and road debris is one of their most significant advantages. A proper job helps to prevent the road-related damages that are likely to occur to your vehicle’s undercarriage.
It is normal for your car to deteriorate because it is continually exposed to elements like rocks, dirt, and salt while you drive. However, over time, the persistent deterioration lowers the worth of your car, diminishing its resale value. Undercoating shields the metal from the weather, preventing damage from the elements and road debris, which helps to prevent rust from developing below the vehicle. Undercoating also helps minimize road noise, which most cars produce when moving, particularly on uneven surfaces and roads. It does this by adding a layer of protection to your car’s undercarriage, improving the comfort and enjoyment of driving your vehicle.
It goes without saying that you want your automobile to last a lifetime. Therefore, it’s important to protect it with proper undercoating. Considering this service is an upfront investment, it’s recommended that you have a professional with experience in vehicle health handle the job.
9. Metal Fabrication
Metal fabrication companies who make wire products, among other things, must be updated on the latest trends and technologies in 2023. These elements can influence the industry by influencing consumer expectations, determining the relevance of the market for a metal fabrication service, and even altering ISO regulations. Let’s take a closer look to understand more about the auto industry.
The COVID-19 pandemic and other events in 2021 and 2022 have caused numerous kinks in the global supply networks. Experts also anticipate that the impact will have a long-term effect on metal fabrication. Widespread shortages of necessities have already been seen and felt by businesses and consumers.
Supply chain problems have worsened due to purchasers being scared off by rising inflation rates. Some suppliers are now compelled to provide significant markdowns on excess stock. Future increases in steel costs could result from the ongoing depletion as well.
10. More Electric Vehicle Models
Over the past few years, as automakers learn more about the auto industry, it has become clear that electric vehicles are the industry’s future. According to IEA, over 500 models were available in 2022, over twice as many as in 2019. Even though many more gas-powered models are available, the steady decrease in new gas cars contrasts sharply with the EV boom. Gas-powered car models fell to 1,300 in 2022 from a peak of almost 1,500 in 2015.
There’s a chance that this may stay stable, while IEA predictions indicate that EV models may double over the coming years. Established automakers and numerous newcomers contribute to this trend by introducing cutting-edge new models. In 2023, there are a lot of EV startups, and it’s anticipated that they will continue to influence the market.
While there has been a significant increase in the market share of EVs, a few obstacles have hindered growth. The most notable are the limited range between charges and lengthy wait times for EV owners. Thanks to the advancements in battery technology in recent years, the typical electric vehicle (EV) can go further between charges than in the past. Besides that, charging times will drop dramatically, which will make it much more convenient to charge your EV.
The primary EV market growth will also contribute to a secondhand market boom as more and more EV owners upgrade their vehicles and resell their initial purchases. As per the EV charging Summit, almost 40,000 used electric vehicles were sold in 2021, marking a nearly 120% growth from the previous year. You can expect this number to skyrocket as the EV market grows.
The auto industry involves many moving parts, and a lot’s going on. From the increasing adoption of electric vehicles that can drive themselves to the adoption of more advanced technology in auto shops for simple things like diesel engine repairs, it’s fantastic to see it all unfold. Use this read as a guide for what to know about the auto industry.