This CNBC video is very good at explaining how the processes in building ICE and EV cars are different and what these means to not only the Big 3, but the corporate showdown at parts manufacturers, transport, etc. Watch the video to learn more about how the electric vehicle revolution will impact the economies of states across the U.S. Midwest.
After manufacturing’s 40-year cycle of decline in the U.S., officials in Washington are trying to bring it back. This move could be a boom or bust for huge swaths of the American Midwest. This region once dominated the auto industry before rising global trade and automation sent domestic manufacturing employment into a tailspin. U.S. leaders hope that new laws such as the Inflation Reduction Act of 2022 will help businesses create the green manufacturing jobs of the future.
Researchers believe modern factory jobs will require more education and could be less available than they were in the past. They estimate that electric vehicles could require 30% less manufacturing labor when compared with conventional cars. “The lines that run to drive oil or gas around an internal combustion engine aren’t going to be there,” said Cooley.
Leaders in Washington hope two key pieces of legislation, the Inflation Reduction Act and the CHIPS Act, which were signed into law by President Joe Biden in August, will provide a bridge to that future. These laws authorize billions in incentives for businesses that pursue clean energy manufacturing.
Researchers believe modern factory jobs will require more education and could be less available than they were in the past. They estimate that electric vehicles could require 30% less manufacturing labor when compared with conventional cars.
Yep. EVs have substantially less content than ICs. The only complicated part is building the battery and that’s largely automated.
There’s always talk of “education” for manufacturing workers. Or “retraining”. Both bogus. Educators may be well intentioned, but they will never be all that useful for training workers. Why? Because worker training is highly specialized and the needs change frequently. Educators need to stick to a solid grounding in basics (including being sure people REALLY know how to read) and let companies train for the details.
More importantly for “the midwest”… most EV production will be non-union. IMO of course. The legacy companies will have less share than they do now and other companies will have the lion’s share. Tesla will probably a pretty good size share, going from 0% to X%… and that’s coming out of someone’s hide.
The Midwest still has advantages compared to other parts of the US. A major one is easy access to much of the US population.
I recall visiting Mead Paper in Chillicothe, OH. Asked why locate there, they say easy access to both the hard and soft wood fiber they need for quality paper. And an order placed by noon today can be delivered tomorrow by truck almost anywhere along the East coast as well as places like Minneapolis, Atlanta, Kansas City, Memphis. Central location is a major asset for many businesses.
Midwest also has a well trained labor force. And is a major source of many agricultural products.
Yes, farm equipment is usually manufactured in the midwest. Electric tractors are on the design boards, but don’t hold your breath. Maybe in 2050.
All those electric motors have to be manufactured somewhere. Also major grid improvements will mean lots of copper and steel. Still made in the midwest mostly because of coal and coke.