New global research commissioned by ABB Robotics and industry specialists Automotive Manufacturing Solutions (AMS) has revealed that the rising cost of energy in Europe and escalating US labor rates are becoming major challenges for the automotive industry.
ABB Robotics’ second annual barometer survey of the automotive industry showed that more than half (53%) of all European respondents cited rising energy costs as one of their top-three concerns, compared to only 38% of those in Asia. In North America, 63% say rising labor costs are their single biggest concern, perhaps amplified by recent union negotiations which secured double-digit pay increases for their members.
Doubts on viability of EV production deadlines remain high. ABB’s first Global Automotive Manufacturing Outlook Survey questioned industry experts as to whether legislative timetables to move to pure electric vehicle production were achievable. This year’s survey returned to the subject and showed a drop in the number of respondents who strongly believed the transition could be realized, from 11% to just 8% this year.
More than half (53%) still believe the targets will never be met, compared to 59% the previous year.
Specific skills shortages offer insights. One reason for doubt over EV production deadlines may lie in concerns regarding key skills shortages. Over half (54%) of all respondents saw specific skills shortages as having a major impact on manufacturing, with European (52%) and Asian (58%) participants singling out EV and battery expertise as their primary areas of concern.
Supply chain disruption highlighted. The survey also highlighted how supply chain disruption caused by global instability, which has often resulted in component shortages and production delays, remains a key industry concern. More than a third (35%) of all respondents highlighted this issue, with a sharp increase amongst respondents in North America (51%) where it was cited as the region’s top manufacturing challenge.
The ABB survey gathered opinions on a range of topics from a comprehensive mix of nearly 400 industry experts from vehicle manufacturers and suppliers at all levels of management and engineering as well as other key professionals throughout the automotive manufacturing world.
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