The automotive industry is one of the biggest economic sectors in the world today. Everything from the transfer of raw materials to shopping is impacted by it in some way shape or form. Without advances in automotive technology, the world would have a very difficult time functioning.
Understandably, given its importance, a lot of people have asked the question: how profitable is the automotive industry?
How Is The Auto Industry Changing?
Among all sorts of industries, the auto industry has seen some of the greatest amounts of change in recent years, especially with the world slowly gearing itself away from oil and towards more renewable technologies.
One of the biggest changes that occur is the movement from diesel engines toward the development of electric vehicle technologies. The rise of companies like Tesla has encouraged more traditional auto manufacturers like Ford and General Motors to tweak their production lines to include several electric vehicle models; a trend that’s only set to increase in the future.
Additionally, cars are starting to become outfitted with more and more high-tech gadgetry. While it used to be that cars would probably have a couple of amenities like radios, rear-view cameras, or even televisions, more modern vehicles are becoming in tune with the internet and contain moderate degrees of artificial intelligence technology.
Beyond just cars though, the automotive scene is also seeing innovations in terms of insurance and customer service. New software technologies are allowing for more efficient allocation of resources and the desire for more remote, rather than in-person, consultation services is changing the ways car dealers and manufacturers interact with their customer base.
Is Automotive Technology A Profitable Field?
Given the indispensable nature of the automotive industry, it’s not surprising that profitability is pretty decent.
While the exact profit margin for individual manufacturers or auto businesses varies considerably from place to place, the average is about 7.5%, which given that the industry makes close to $100 billion every year, is a sizable sum.
Future profitability is going to be determined largely by innovation, specifically in regard to electric vehicle technology and software development.
What All This Means for You
If you’re looking for a new career or a change of pace in your life, then getting an education in something related to the automotive industry would be a pretty smart move.
The industry itself is already massive and there’s always a need for new talent. This is especially true in the current age where the automotive field is seeing the greatest shift in technological innovations since the development of the assembly line.
Staying on the cutting edge of automotive knowledge is incredibly important and you can start by enrolling in an educational program specializing in automotive technology, such as those offered by Universal Technical Institute.
There are quite a few automotive opportunities out there, but whether or not you can take advantage will depend a lot on your knowledge of the industry.