Today’s consumers have more ways than ever to get around town, from personal vehicles, to public transportation to rideshare programs to Uber-like services, yet there are more automobiles on the road than there have been in years.
In fact, according to IHS Automotive, “the number of vehicles on the road reached a record level of almost 253 million, an increase of more than 3.7 million, or 1.5%, since last year reported.”
Good news for the automotive industry! Let’s take a look at what else is trending in the automotive and transportation world.
There’s Job Growth!
As discussed in this LinkedIn article, those staggering figures for how many vehicles are on the road mean new jobs in the automotive industry. Not just because of the growth in vehicle purchases mentioned above, but because more vehicles mean “the problems of managing and maintaining the increasing number of vehicles on limited available roadways is growing – creating new jobs in transportation.”
And to meet the demands for more employees, Michigan is promoting auto jobs with its "We Run on Brainpower" initiative to help a younger generation get excited about working in the automotive industry.
Uber and Friends
Industry experts believe that “the average car is parked 95 percent of the time.” Out of this arose car sharing services like Lyft and Uber, which allow the average driver to “share” his or her car and provide rides to other consumers. Though the automotive industry is booming, Uber may negatively impact this growth. Uber CEO Travis Kalanick champions the company’s mission to “make car ownership a thing of the past.”
While this may alter the job growth mentioned above, some believe Uber-like services could be beneficial in reducing traffic, parking, crashes and commute times. Not to mention the reduction in greenhouse gases. Still, there’s talk around the industry that Uber isn’t making the money you might think it is.
Buying Is Up, but so Is Vehicle Age
USA Today reports that “Americans are buying cars at an annualized rate of more than 17 million vehicles, marking a high not seen since before the Great Recession.” Funny enough, the average age of vehicles on the road is at an all time high, at 11.5 years old, due to advances in automotive technology and more reliable vehicles. Industry experts suspect that the rise in age of vehicles paired with the surprising growth in vehicle purchases is simply because people are hanging onto their old cars while buying new ones – meaning more traffic!
The Driverless Car
An automotive industry trend report wouldn’t be complete without a look into the “driverless car.” In June, Google announced that a few of its driverless vehicles were driving around Mountain View, California, and according to Delphi, who is also testing driverless vehicles, a self-driving Google car cut off one of its vehicles as it was about to change lanes. With more traffic on the roads than ever, and vehicle crashes and insurance claims up, it’s interesting to think about how driverless cars will impact all of that.
Regardless of whether you are driving your old car, buying a new one, using ride sharing services or public transportation or letting your car do the driving for you, remember to always be safe on the rode and avoid distractions like texting. Safe driving everyone!
Check out some of our other industry updates to see whats happening!
