Automotive Manufacturing Predicted To Go Through The Roof In 2020
Although the financial markets have been hit by volatility in recent years, the world of manufacturing has seen a resurgence. While the steel industry has fallen on hard times recently, the thirst for new cars shows no sign of abating. This means that more components need to be produced and more manufacturing plants need to be built. Plants across the United States have taken the financial risk of expanding their enterprise to increase their capability for producing more complete cars every year. In 2020, the automotive manufacturing industry is due to go through the roof.
General Motors, one of the largest automotive companies in the world spent much of 2019 in talks with officials in Missouri with the prospect of investing one billion dollars to launch a new plant site. Here, they want to create the most forward thinking and post modern plant in the automotive world. Consumers want better cars, more reliable motors and a reasonable retail price. As such, manufacturing plants have had to make their processes more efficient. At their Kentucky plant, GM made the decision to work around the clock to increase production.
The modern manufacturing environment utilizes the latest equipment, technology and AI to limit human error. Each gasket used in the plant must be exceptionally well made and reliable. A polymer material can create an ultra thin gasket – perfect for gearboxes and transmission casing. Making the components of vehicles more reliable and easier to produce makes the manufacturing process more streamlined, increasing productivity.
It isn’t just GM getting in on the action. All car makers are at it. In February 2019, Fiat Chrysler announced that it would invest over four billion dollars to launch a new plant in Michigan to create the next generation of Jeep products. This announcement coincided with Ford’s declaration of investing an extra billion dollars to expand their plant in Chicago.
In the United States, the automotive industry is flourishing. There is no sign of any sort of slow down any time soon as demand is still outstripping supply. This could be because of two factors. Brexit has created a lot of uncertainty within Europe and the UK. Alongside a slowdown in China with protests in Hong Kong, investors are viewing the United States as a safer bet.
Many business decisions are dictated by the political and financial environments of the day. While the American automotive market is on the ascendence, it may not always be this way. People are placing their investments in utility vehicles and SUVs as these seem to be metaphorical flavor of the month, hence the expansion of the Ford plant in Chicago and the extra plant for Jeep components.
Even though core sales of new vehicles might appear to be slowing down overall, the American market is predicted to be one to watch in 2020. And it isn’t just the automotive sphere seeing an explosion of investment; manufacturing as a whole is finding itself becoming a more fashionable investment for fund managers, companies and individuals alike.