Opportunities and Challenges for Illinois Automakers in the Transition to Electric Car Detailed by IMEC and IMA Report

Illinois According to a new report, manufacturers in the automotive supply chain face new challenges and opportunities from going electric.

PEORIA, Ill., November 9, 2022 /PRNewswire/ — The Illinois Manufacturing Excellence Center (IMEC) and the Illinois Manufacturers’ Association (IMA) released an impact report detailing the changes Illinois automakers will experience as the transportation market shifts to electric vehicles. The report, written by the Center for Automotive Research, explains that Illinois Manufacturers in the automotive supply chain will see growth opportunities in the transition to the electric car, with the production of new parts creating new jobs. However, the report also details that other automakers are at risk if they cannot modify their production.

The objective of the report is to deepen the understanding of the evolution of the automotive supply chain. Currently, car manufacturing accounts for a large share of the Illinois economy. According to the impact report, the Illinois The automotive industry employs 1,073 companies and employs 89,059 workers. Because the auto industry employs so many Illinoisans, the implications of the transition are vast.

The impact report identifies 10,800 employees (12% of Illinois auto workers) whose jobs are at “high risk” of obsolescence in the transition to electrification. These workers make products such as engine components, fuel systems and exhaust pipes. Electric cars do not use any of these parts. The impact report explains that these employees will need new skills and that their companies should adapt quickly.

However, the impact report is not all bad news. It is also specified that 20,300 employees (23% Illinois auto workers, nearly double the number of “high-risk” employees) work in growing industries. These workers largely work in electronics manufacturing, making things like battery cells and audio telematics systems.

The report also indicates that the majority of auto parts production is in the “Low to Moderate Risk” zone. These companies could make small changes to stay competitive. This includes chassis manufacturers, who will have to manufacture heavier bodies. Other manufacturers, such as windshield manufacturers, are expected to make virtually no changes. 58,000 Illinoisans (65% of Illinois auto workers) are in the low to moderate risk zone.

President David Boulay of IMEC assessed the report saying, “Manufacturing is at an unprecedented crossroads. There are huge opportunities and challenges to overcome. This report should help spark the conversation and solutions we need for the transition Illinois manufacturers with these changes in car manufacturing.”

President Marc Denzler of the IMA further commented on the report, “Illinois’ The automotive sector is a key part of our state’s manufacturing sector. It is the main driver of our economy. There are many opportunities and challenges in the transition, which is why the IMA spearheaded the creation of new manufacturing academies, including one focused on electric vehicles, and worked with the governor and lawmakers to enact the REV Act. -EDGE. We are well positioned to be a national leader in the future.

The impact report also states that Illinois is well positioned to become a manufacturing hub for electric vehicles due to major investments by automakers and the Inflation Reduction Act.

By publishing this report, IMEC and IMA demonstrate their commitment to support Illinois’ tackle carbon emissions. The report shows which automakers will benefit from the transition to electrification and which automakers will need help. Nevertheless, IMEC and IMA are convinced that Illinois will continue to be a stronghold for automakers in the future.

For a digital copy of Impacts of electrification Transition from Illinois’ Automobile industryvisit: www.IMEC.org/evreport.com

About IMEC

IMEC is a team of improvement specialists dedicated to changing lives and creating a positive impact on Illinois’ labor and the economy. With a mission to drive growth through business excellence, they help organizations become more effective and efficient by identifying problems, developing and implementing solutions, and providing the necessary support that will enable them to excel in the areas of leadership, strategy, customer engagement, operations, people, and measurement and results. In 2021, they supported more than 1,600 companies and contributed to the creation or maintenance of more than 5,679 jobs, i.e. more than $450 million the overall impact on the Illinois economy. IMEC has seven offices statewide and 48 full-time Industry Improvement Specialists. For more information, visit www.imec.org.

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SOURCEIMEC

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