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Motor Vehicle and Parts Manufacturing

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Industry Overview
The motor vehicle is an intricate series of systems, subsystems, and components assembled into a final product. Each manufactured part or component is integrated into the vehicle; none is developed to exist separately. Vehicles are constantly changing as new technology or reengineered components are incorporated, and as new and updated models are designed in response to changing consumer preferences. Motor vehicle and parts manufacturers must continually evolve to maximize efficiency and provide products that consumers want in a highly competitive market.

Motor vehicles -- passenger cars, sport utility vehicles (SUVs), pickup trucks and vans, heavy-duty trucks, buses, and other special-purpose motor vehicles ranging from limousines to garbage trucks -- play a central role in our society. Most U.S. residents rely on them daily to travel to work or school, shop, or visit family and friends. Businesses depend on motor vehicles to transport people and goods. The United States is the world's largest marketplace for motor vehicles because of the size and affluence of its population. According to the U.S. Department of Transportation, almost 230 million motor vehicles -- nearly 136 million automobiles, 95 million trucks, and 777,000 buses -- were registered in the United States in 2003. The number of light trucks -- including vans, pickup trucks, and SUVs -- has shown especially steady growth since the mid- to late 1980s.

Making the vehicles we drive is only a small part of the story in the motor vehicle and parts manufacturing industry. In 2004, about 9,400 establishments manufactured motor vehicles and parts; these ranged from small parts plants with only a few workers to huge assembly plants that employ thousands. Table 1 shows that about 7 out of 10 establishments in the industry manufactured motor vehicle parts -- including electrical and electronic equipment; gasoline engines and parts; brake systems; seating and interior trim; steering and suspension components; transmission and power train parts; air-conditioners; and motor vehicle stampings, such as fenders, tops, body parts, trim, and molding. Other establishments specialized in manufacturing truck trailers; motor homes; travel trailers; campers; and car, truck, and bus bodies placed on separately purchased chassis.

The motor vehicle and parts manufacturing industry in the United States has become increasingly integrated into the international economy. In fact, "domestic" vehicles often are produced using the components, manufacturing plants, and distribution methods of other nations around the world, as U.S. and foreign manufacturers of motor vehicles benefit from strategic alliances in the design, production, and distribution of vehicles and parts. Collaboration in manufacturing practices has dramatically increased productivity and improved efficiency. These cooperative practices also have resulted in manufacturers from the United States, Europe, and the Pacific Rim working closely with parts suppliers and locating production plants in the countries in which they plan to sell their vehicles, to reduce distribution time and costs. Foreign motor vehicle and parts makers with production sites in the United States are known as "domestic internationals" and account for a growing share of U.S. production and employment.

Globalization of the industry has boosted competition among U.S. motor vehicle manufacturers, prompting innovations in product design and in the manufacturing process. Manufacturers have rapidly designed and produced new models aimed at niches in the market. Firms also must be fast and flexible in implementing new production techniques, such as replacing traditional assembly lines with modern systems using computers, robots, and interchangeable platforms. Plants designed for production flexibility put resources in the right place at the right time, allowing manufacturers to shift to new models quickly and efficiently.

Motor vehicle and parts manufacturers have a major influence on other industries in the economy. As major consumers of steel, rubber, plastics, glass, and other basic materials, they create jobs in industries that produce those materials. The production of motor vehicles also spurs employment growth in other industries, including automobile and other motor vehicle dealers; automotive repair and maintenance shops; gasoline stations; highway construction companies; and automotive parts, accessories, and tire stores.

Working Environment 
In 2004, about 33 percent of workers in the motor vehicle and parts manufacturing industry worked, on average, more than 40 hours per week. Overtime is especially common during periods of peak demand. As in other industries, professional and managerial workers normally have clean, comfortable offices and are not subject to the hazards of assembly line work.

Employment
Motor vehicle and parts manufacturing was among the largest of the manufacturing industries in 2004, providing 1.1 million jobs. The majority of jobs, about 62 percent, were in firms that make motor vehicle parts. About 23 percent of workers in the industry were employed in firms assembling complete motor vehicles, while about 15 percent worked in firms producing truck trailers; motor homes; travel trailers; campers; and car, truck, and bus bodies placed on separately purchased chassis.

Although motor vehicle and parts manufacturing jobs are scattered throughout the nation, certain states account for the greatest numbers of jobs. Michigan, for example, accounts for 22 percent of all jobs. Combined, Michigan, Ohio, and Indiana include 46 percent of all the jobs in this industry. Other States that account for significant numbers of jobs include California, Tennessee, Texas, Kentucky, and Missouri.

Employment is concentrated in a relatively small number of very large establishments. About 73 percent of motor vehicle and parts manufacturing jobs were in establishments employing 250 or more workers. Motor vehicle manufacturing employment, in particular, is concentrated in large establishments, whereas many motor vehicle parts manufacturing jobs are found in small and medium-sized establishments.

Degree Paths into this Industry
Prior to assembling components in the manufacturing plant, extensive design, engineering, testing, and production planning go into the manufacture of motor vehicles. These tasks often require years to complete and cost millions of dollars.

Using artistic talent, computers, and information on product use, marketing, materials, and production methods, commercial and industrial designers create designs they hope will make the vehicle competitive in the marketplace. Designers use sketches and computer-aided design techniques to create computer models of proposed vehicles. These computer models eliminate the need for physical body mockups in the design process because they give designers complete information on how each piece of the vehicle will work with others. Workers may repeatedly modify and redesign models until the models meet engineering, production, and marketing specifications. Designers working in parts production increasingly collaborate with manufacturers in the initial design stages to integrate motor vehicle parts into the design specifications for each vehicle.

Engineers -- who form the largest professional contingent in the industry -- play an integral role in all stages of motor vehicle manufacturing. They oversee the building and testing of the engine, transmission, brakes, suspension, and other mechanical and electrical components. Using computers and assorted models, instruments, and tools, engineers simulate various parts of the vehicle to determine whether each part meets cost, safety, performance, and quality specifications. Mechanical engineers design improvements for engines, transmissions, and other working parts. Electrical and electronics engineers design the vehicle's electrical and electronic systems, as well as industrial robot control systems used to assemble the vehicle. Industrial engineers concentrate on plant layout, including the arrangement of assembly line stations, material-moving equipment, work standards, and other production matters.

Under the direction of engineers, engineering technicians prepare specifications for materials, devise and run tests to ensure product quality, and study ways to improve manufacturing efficiency. For example, testing may reveal how metal parts perform under conditions of heat, cold, and stress, and whether emissions-control equipment meets environmental standards. Finally, prototype vehicles incorporating all the components are built and tested on test tracks, on road simulators, and in test chambers that can duplicate almost every driving condition, including crashes.

Computer systems analysts work with computer systems to improve manufacturing efficiency. After working out the many details involved, computer specialists help put in place the machinery and tools required for assembly line production of the vehicle.

Industry Forecast
Overall wage and salary employment in the motor vehicle and parts manufacturing industry is expected to increase by 6 percent over the 2004-14 period, compared with 14 percent for all industries combined. While employment in motor vehicle manufacturing is expected to grow very slowly, firms manufacturing motor vehicle parts, bodies, and trailers are expected to add more jobs. Employment is expected to increase by only 2 percent in motor vehicle manufacturing, with increases of 6 percent in motor vehicle parts manufacturing and 8 percent in motor vehicle body and trailer manufacturing.

Growth in firms that manufacture motor vehicle parts, bodies, and trailers will generate many job openings, as will the departure of workers who retire or transfer to jobs in other industries. Not all of the motor vehicle manufacturing workers who leave the industry will be replaced, however, and many of the new workers will be hired for occupations different from those vacated by departing employees.

Employment in the motor vehicle and parts manufacturing industry is expected to grow with demand for motor vehicles and parts, but jobs will be lost due to productivity increases. The growing intensity of international and domestic competition has increased cost pressures on manufacturers. In response, they have sought to improve productivity and quality with high-technology production techniques including computer-assisted design, production, and testing. Increasing productivity should meet much of the demand created by the increasing output of the motor vehicle and parts manufacturing industry, resulting in slow job growth. Moreover, the industry is increasingly turning to contract employees in an effort to reduce costs.

Expanding factory automation, robotics, efficiency gains, and the need to cut costs are expected to keep employment from growing as fast as output. Increases in efficiency and automation will cause employment declines in some occupations, particularly in production occupations. Employment of office and administrative support workers will decline due to expanding office and warehouse automation. Automation and continued global competition, however, are expected to produce job growth for industrial engineers, industrial production managers, business operations specialists, and computer specialists. Manufacturers will increasingly turn to these workers for further innovation in reducing costs and enhancing competitive advantage.

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Note: Some resources in this section are provided by the US Department of Labor, Bureau of Labor Statistics.


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