The auto industry is facing rising energy costs in Europe and

The key challenge of high labor costs in the United States

According to the survey results, more than half (53%) of European respondents ranked rising energy costs as one of their top three concerns, while only 38% of respondents in Asia shared this view. In North America, 63 percent of respondents cited rising labor costs as their biggest challenge.

DS200TCTGG1AFF Joerg Reger, head of ABB’s robotic car business unit, said: “Rising Labour and energy costs are the most prominent issues in our survey this year. However, solutions to reduce energy consumption in the manufacturing process already exist. A new generation of intelligent automation systems and robot controllers, such as ABB’s OmniCore™, can dramatically reduce power consumption by 20 percent through the use of leading-edge software, lighter materials and feedback systems.

It is doubtful that the electric vehicle production capacity target will be met within the deadline

Last year, ABB’s first-ever Global Automotive Manufacturing Outlook Survey asked industry experts whether the legal deadline for pure electric vehicle production was achievable. This year’s survey again focused on this theme, and the results showed that the percentage of respondents who strongly believe that transformation can be achieved dropped from 11% last year to 8% this year. More than half (53%) of respondents still believe the goal is unattainable, compared to 59% last year.

DS200TCTGG1AFF

DS200TCTGG1AFF Electric vehicle capacity targets are constrained by a shortage of key skills

Doubts about electric vehicle capacity targets may stem from a shortage of key skills. More than half (54%) of respondents believe that skills shortages in specific areas are having a significant impact on manufacturing, with European (52%) and Asian (58%) participants specifically citing expertise in electric vehicles and batteries as their main areas of concern.

Skills shortages in some very specific areas remain a concern for the industry. As electric vehicle production capacity climbs, the need to both upskill or reposition existing employees and attract new talent to the automotive industry becomes more urgent. Electric vehicle manufacturing integrates a large number of software, electrical and advanced electronic components, which requires employees to have a whole new skillset. The survey results show that there is widespread agreement that more needs to be done to address this challenge.