The U.S. auto industry has made a strong comeback following the recession between 2007 and 2009. Consumer confidence in American auto producers and pride in American-made products have fueled the auto industry's rise to a driving force in the manufacturing industry. With growth at rates not seen since the 1970s, the auto industry is primed to set an example for manufacturing success in the United States.
The Alliance of Automobile Manufacturers reports that the 2010s began with a 3-year streak of year-to-year auto sales increases of 10 percent or more. Steady growth in light-vehicle sales fueled the increases and helped the industry rise to the top levels of the manufacturing sector. In 2013, one out of every 17 private-sector jobs was related to the auto industry, and auto manufacturing had higher worker production hours and the highest average salaries for production workers out of all U.S. manufacturing industries. Emerging technologies and government policies designed to bolster manufacturing play key roles in the auto industry's strength.
Growth in the auto industry is fueled by innovation. Consumers are eager to cut fuel costs while improving their environmental impact. Industry research and development teams focus on environmentally friendly hybrid, electric and flex-fuel vehicles with better fuel efficiency and high performance ratings. New manufacturers work on developing new alternative-fuel models and revolutionary cost-cutting designs, which are driving competition in the industry and further fueling innovation in established companies. The availability of more fuel-efficient cars leads to more sales as drivers replace older vehicles. The auto industry serves as a model to other manufacturers in using consumer-driven innovation to increase sales.
An increase in exports is further spurring growth in the auto industry. Exports in vehicles and parts grew 10 percent between 2011 and 2012. The U.S. Department of Commerce lists autos as one of the top industrial exports. This pulls additional revenue into the United States and benefits other industries in the supply chain that keep auto factories running.
Auto manufacturers work to shape America's industrial future by seeking to influence policies that affect manufacturing. Auto manufacturers lobby for better fiscal policies to reduce costs and better trade policies to grow exports. Better government policies benefit all American industries. Efforts to pioneer private-public partnerships for research and to develop training programs to produce skilled workers with the technical knowledge the modern manufacturing environment demands also lead to across-the-board industrial growth.
The auto industry continues to drive the manufacturing sector and growth in the U.S. economy as a whole. More jobs in auto manufacturing correlate with better economic conditions for everyone. Look for more product innovation, a focus on exports and continued efforts to shape government policies related to manufacturing from auto industry leaders and other manufacturing industries looking to emulate the auto industry's success.
Photo courtesy of pakorn at FreeDigitalPhotos.net
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