Impact of the Auto Industry on the Economy and Job Market

The auto industry is a major contributor towards the economy of all the major manufacturing countries worldwide. It not only provides countless job opportunities but also has the economic impact. The global automotive industry is highly diverse and comprises of various product segments like engine parts, drive transmission and steering parts, suspension & braking parts, electrical parts and other auto components.

Autos industry covers a vast array of vehicles like luxury cars, passenger cars, specialist vehicles, motorcycles, scooters, mopeds, and off-road vehicles manufacturers & dealers of automobile components and accessories, car-care products, environment and safety equipment, garage and service equipment, moulds and dyes, oils & lubricants, petrol vending machines, tires, batteries and auto electrical, upholsteries and much more. The automobile has enabled people to travel and transport goods farther and faster and has opened wider market areas for business and commerce. The auto industry has also reduced the overall cost of transportation by utilizing methods such as making several products at once, rather than one at a time, selling products nationally rather than locally and globalization of production. In the early days of its inception, this invention had to face many problems. There was no real established industry and the manufacturing processes involved were slow. With the automakers and auto buyers' base expanding globally, auto making became the world's largest manufacturing activity. Now this industry is making approximately 58 million new vehicles each year all across the globe.

The diverse mobility offered by the automotive industry allowed remote populations to interact with one another, which increased commerce. The transportation of goods to consumers and consumers to goods has become an industry in itself. The automobile however has also brought related problems, such as air pollution, the emission of greenhouse gases that contribute to global warming, congested traffic, and highway fatalities. Nevertheless, the automobile industry continues to be an important source of employment and transportation for millions of people worldwide. The automobile industry directly influences the economies of the United States and other countries around the world. In a typical year, the U.S. automobile industry generates between 12 and 14 percent of manufacturers' shipments of durable goods. The automobile production consumes large amounts of iron, steel, aluminum, and natural rubber. An interesting fact is that it also consumes more copper, glass, zinc, leather, plastic, lead, and platinum than any other U.S. industry.

Automotive parts manufacturers form another large section of the USA auto industry, comprising about 5,000 firms, including Japanese, European, and Canadian companies. These firms supply the original for manufacture and the replacement parts market for maintenance and repair. By some estimates, for every job created in the automobile assembly industry, three to four jobs are created in the automotive parts industry. Numerous other industries support the automobile industry. These include the insurance, security, petroleum, and roadway design and construction industries. Still other industries, such as motels, drive-in theaters, and fast-food restaurants, owe their existence to the mobility provided by the automobile.

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