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Released March 01, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The annual Cleveland Auto Show opened its doors this past Friday as the booming automotive sector again provides consumers with a glimpse of the future. The Cleveland show, which began in 1903, is the first major auto show following the annual Detroit Auto Show in January. The show runs from Friday, February 26, through Sunday, March 6, and highlights a sector that is expected to see more than $12 billion in capital and maintenance projects begin construction this year in the U.S., with $1.5 billion of those projects in Ohio itself.
Click on the image at right for U.S. automotive kickoffs by market region.
The automotive sector has seen rapid but steady growth for several years now, hitting record numbers in both total U.S. sales and total U.S. production in 2015. To maintain that pace, billions are being spent each year to upgrade, retool and expand the automotive assembly plants and all of the tier suppliers who support those plants. In Ohio, one of the key automotive players in the Great Lakes region, Ford Motor Company (NYSE:F) (Dearborn, Michigan) is expected to begin construction early this summer on a proposed, $900 million addition to its Sharonville transmission plant, a project that will take close to 18 months to complete. FCA US LLC (Auburn Hills, Michigan) (formerly Chrysler) is also planning a major project in Ohio, investing $900 million in its Toledo assembly complex, where the automaker will retool its facility to convert from making the Jeep Cherokee to the Jeep Wrangler and Wrangler Pickup truck. This project is scheduled to begin the summer of 2017 and to be completed a year later.
Nationally, the Great Lakes region is expected to see the bulk of the capital and maintenance work scheduled for the balance of 2016, with just less than 200 projects worth an estimated $6.8 billion scheduled to begin construction. Both the Rocky Mountains and Southeast regions are expecting some significant automotive-related expenditures this year, with each region seeing more than $2 billion in total capital and maintenance spending. Some of the major projects in these three regions include the proposed, $877 million body shop expansion in Michigan by General Motors Corporation (NYSE:GM) (Detroit, Michigan); a $2.5 billion grassroot lithium-ion battery manufacturing plant in Arizona by Tesla Motors Incorporated (NASDAQ:TSLA) (Palo Alto, California); and a proposed, $500 million van assembly plant expansion by Daimler AG (Stuttgart, Germany) in South Carolina.
The automotive sector has been running on all cylinders since just after the Great Recession, and all signs are pointing to 2016 being another good year. Oil and gas prices remain low, which has helped consumers to purchase new vehicles, and those prices are not expected to drop until sometime in 2017, which is certainly good news for the automotive sector and its sales projections.
Electric vehicle sales have slowed with the lower oil and gas prices, but now the buzz phrase is "self-driving vehicles." All of the major automakers have joined forces with tech companies to put millions into R&D for this concept. While the technology is not quite there yet, it will not be too far into the future when not having to pay attention while driving is a reality.
The Cleveland Auto Show is the latest arena where the vehicle-purchasing public can get a glimpse, and in some cases a test drive, of the vehicles of the future. Models for 2017 are being introduced, and concept cars abound as the automotive sector shows off its vision of the future in the coming days. Shows such as this one play an important role for the automakers as the public gets a chance to see, touch and drive those vehicles of the future, and these shows encourage consumers to open their wallets for the automakers which, in turn, helps to justify the billions being proposed in capital and maintenance spending throughout the sector in the U.S. this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for U.S. automotive kickoffs by market region.The automotive sector has seen rapid but steady growth for several years now, hitting record numbers in both total U.S. sales and total U.S. production in 2015. To maintain that pace, billions are being spent each year to upgrade, retool and expand the automotive assembly plants and all of the tier suppliers who support those plants. In Ohio, one of the key automotive players in the Great Lakes region, Ford Motor Company (NYSE:F) (Dearborn, Michigan) is expected to begin construction early this summer on a proposed, $900 million addition to its Sharonville transmission plant, a project that will take close to 18 months to complete. FCA US LLC (Auburn Hills, Michigan) (formerly Chrysler) is also planning a major project in Ohio, investing $900 million in its Toledo assembly complex, where the automaker will retool its facility to convert from making the Jeep Cherokee to the Jeep Wrangler and Wrangler Pickup truck. This project is scheduled to begin the summer of 2017 and to be completed a year later.
Nationally, the Great Lakes region is expected to see the bulk of the capital and maintenance work scheduled for the balance of 2016, with just less than 200 projects worth an estimated $6.8 billion scheduled to begin construction. Both the Rocky Mountains and Southeast regions are expecting some significant automotive-related expenditures this year, with each region seeing more than $2 billion in total capital and maintenance spending. Some of the major projects in these three regions include the proposed, $877 million body shop expansion in Michigan by General Motors Corporation (NYSE:GM) (Detroit, Michigan); a $2.5 billion grassroot lithium-ion battery manufacturing plant in Arizona by Tesla Motors Incorporated (NASDAQ:TSLA) (Palo Alto, California); and a proposed, $500 million van assembly plant expansion by Daimler AG (Stuttgart, Germany) in South Carolina.
The automotive sector has been running on all cylinders since just after the Great Recession, and all signs are pointing to 2016 being another good year. Oil and gas prices remain low, which has helped consumers to purchase new vehicles, and those prices are not expected to drop until sometime in 2017, which is certainly good news for the automotive sector and its sales projections.
Electric vehicle sales have slowed with the lower oil and gas prices, but now the buzz phrase is "self-driving vehicles." All of the major automakers have joined forces with tech companies to put millions into R&D for this concept. While the technology is not quite there yet, it will not be too far into the future when not having to pay attention while driving is a reality.
The Cleveland Auto Show is the latest arena where the vehicle-purchasing public can get a glimpse, and in some cases a test drive, of the vehicles of the future. Models for 2017 are being introduced, and concept cars abound as the automotive sector shows off its vision of the future in the coming days. Shows such as this one play an important role for the automakers as the public gets a chance to see, touch and drive those vehicles of the future, and these shows encourage consumers to open their wallets for the automakers which, in turn, helps to justify the billions being proposed in capital and maintenance spending throughout the sector in the U.S. this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
