Tag Archives: automotive industry

Manufacturing Investment in Georgia is as Ripe as The Peaches

Georgia Manufacturing

The State of Georgia is known for many things. It’s one the original 13 colonies, is the state with “Seven Natural Wonders”, has the first college for women in the U.S., and 18 Fortune 500 companies call the state home. But of most interest to us, is that a major portion of the state’s GDP is contributed to by the manufacturing industry.

Manufacturing Statistics

The manufacturing industry contributes to 11.1% of the total output in the state, by employing 8.8% of the workforce. Total contribution in Georgia’s GDP was $54.82 billion in 2015. In addition, the manufacturing sector employed 373,700 people in 2015, with an average annual income of $67,365. The top three manufacturing industries in Georgia include food beverages & tobacco products, bringing in the substantial amount of $11 million. The transportation equipment & chemical industries boost the GDP by $9 million which means the economy benefits greatly from manufacturing with roughly $35.60 billion worth of goods exported to foreign countries from Georgia in 2015. In other words, exports from the manufacturing sector were 92.3% of the total exports of the state and helped Georgia to create around 21.3% of employment, or 209,071 people.

Automotive Industry

The automotive industry operates 250 facilities throughout Georgia while employing more than 18,000 workers. More than $9.5 billion worth of automotive exports is shipped through Georgia’s ports. Automotive manufacturing employment in Georgia is expected to grow by 11.9% by 2020 while vehicle body & trailer manufacturing are also projected to expand by 8.5%, with parts expected to increase by 8.1% respectively.

Automotive Investment

Mercedes Benz, the automobile luxury giant is planning to invest $74 million into Atlanta by moving its’ main office to the state. This move will generate at least 800 more jobs for Georgia.

The leading manufacturer of golf carts, Textron Specialized Vehicles Inc, is investing more than $40 million to build a new facility in Augusta. This investment will increase employment by 400 people in the state. The company markets its products under the E-Z-GO®, Cushman®, Bad Boy®, TUG™ and Douglas™ brands. The company currently employs more than 1,000 people in Georgia and has experienced an average annual workforce growth of more than 13% since 2010.

Porsche will assist in boosting the state’s superiority as an automotive giant even further by investing more than $100 million, when it shifts its’ headquarters to Atlanta. The huge 26.4-acre complex is going to need more than 400 new workers to staff.

A major chunk of the state’s workforce consists of employment from the automotive industry as we’ve detailed. Georgia is ninth in the nation for manufacturing. With giant automotive companies like Mercedes, Porsche, Honda, & Kia. Motors investing heavily in the state, employment in the automotive sector is getting a huge boost. With investment from the automotive industry, Georgia is ensuring maximum employment, driving its economy, and pushing the limits as a real contender in the nation’s economy.

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Parts Manufacturing Holds the Key to New Jobs in Automotive Industry

automotive deburring

Recently, the Trump Administration set out to have conversations with the top industrial giants of the automotive industry. His motive: to figure out a way to move auto industry jobs from Mexico back to the United States. But should auto-assembly be his focus? The auto industry job market is saturated with careers, not in auto-assembly, but in parts manufacturing. It is well-known that the automotive parts industry holds many of the auto industry’s total jobs and most of its plants are in Mexico. When we focus on the details of the auto-economy, we see that for every auto assembly job there are 7 auto-parts workers. It’s clear that a set of more detailed initiatives focusing on the auto-parts industry should be set in place to reinforce its growth.

Since 2012, automotive parts manufacturing jobs in the United States have risen 19% per MEMA (Motor and Equipment Manufacturing Association). This growth, per the survey conducted by MEMA, can be attributed to the rising use of technology in manufacturing. This allows for the creation of better products made in the United States by skilled laborers. This report, is very timely, with the current initiatives taking place by the Trump Administration. It’s important to review some of the potential steps, proposed and already underway, that could drastically affect the auto-parts industry.

NAFTA 

President Trump recently signed an executive order that could potentially change the NAFTA agreement. Now, although well-intentioned, this could come at a steep cost. Most economists agree that the three countries involved in the NAFTA Agreement (Canada, Mexico, and the United States) are so intricately intertwined that this could be a dramatic defeat for all three economies. It is true that Mexico contains most of the jobs in the automotive industry. It is also true that a tariff could force those companies to move up North. But this shift in production location could be slow, taking up to 15 years for the creation of reshoring strategies, plants, and hiring of US workers. This could impact the auto industry, dropping the sales of cars drastically. Of course, this depends on the details of the dismantling of the NAFTA agreement that will be worked out in the upcoming weeks.

Growth

What should be the focus when it comes to the automotive industry for improving the economy? Toronto auto-parts company CAMBRIDGE has seen the benefits of focusing on innovation and technology. They’ve incorporated processes like metal-stamping, zinc plating, as well as e-coating into their auto-parts creation. Processes like these require skilled laborers that the industry can rely on. This is the key to success in their company, and they leverage it to increase job offers. Perhaps they are the example to follow or one of just many worth considering.

Focus

Focusing on creating an educated and skilled workforce in the automotive industry would require that attention not only be focused on restructuring NAFTA, but also on the establishment of an education plan within the public-school system that would incorporate STEM abilities into the curriculum. We must put politics aside and contemplate the strategies that are effective in recuperating the auto industry and manufacturing in general.

The Cleveland Deburring Machine Company can provide a deburring solution for gears, sprockets, aerospace and defense, power transmission, powdered metals, fluid power and custom deburring applications. Our no-charge application evaluation includes a detailed report and process description in as little as 3 to 5 business days. Contact CDMC today for a deburring machine that’s right for you.

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