Yen Chen & Kristin Dziczek
Finally, CAR has identified three reasons to be pessimistic about auto jobs returning to the US in large numbers:
Current talent shortages (the unemployment rate in the transportation equipment sector was 3.7% in 2016—fully one point lower than the national average); in addition, shortages are especially acute in skilled trades occupations.
Global competitiveness—every auto production region sources from low-cost/best-cost countries; the US auto industry would be less competitive on a global stage without use of “best-cost” parts and components.
The US light vehicle market is near the top of the cycle; manufacturers will be cautious about making greater US investments that could lead to an overcapacity situation as the market eventually slows or begins to contract.