New rounds of financing are coming out of Washington, which is accelerating the race to produce electric automobiles in the United States. The former centre of the car industry’s workforce is afraid of being left behind.
The number of employees won’t decrease when we thoroughly examine what happens on the factory floor, according to Keith Cooley, a former director of Michigan’s Labor Department, who spoke to CNBC. The cars will be built by a variety of people.
According to researchers, factory employment in the modern world may require more knowledge and be less common than they once were. When compared to conventional cars, they predict that the manufacturing of electric vehicles could require 30% less labour. “There won’t be any lines that go around an internal combustion engine to drive oil or gas,” Cooley said.
The car industry’s suppliers of parts, many of whom are based close to Midwestern locations like Kokomo, Indiana; Lima, Ohio; and Detroit, Michigan, could be impacted by this move.
According to Sanya Carley, an Indiana University professor who contributed to the Industrial Heartland study, “car companies in some of these places actually make up a decent proportion of the tax revenue, and they employ many people within the surrounding community.” The future of these businesses is so closely linked to that of the communities.
The Inflation Reduction Act and the CHIPS Act, which President Joe Biden signed into law in August, are two significant pieces of legislation that Washington officials are hoping will serve as a bridge to that future. These regulations permit enterprises who pursue the manufacture of clean energy to receive billions in subsidies.
Automakers are already pondering how quickly demand for electric vehicles will materialise now that funding is in the works. According to the International Energy Agency, 9% of all automobile sales worldwide in 2021 were electric vehicles.
Learn more about how the electric vehicle revolution will affect the economies of states in the U.S. Midwest by watching the movie.