The automotive industry faces a rough and gradual recovery in inventories and demand. For example, in 2021, buyers had to experience a significant price increase due mainly to the global semiconductor chip shortage, instability in the supply chain, and the problems caused by the Covid pandemic.
2022’s demand is having a spike in sales volume vs. 2021. According to a Marklines report, since August 2022, vehicle sales have increased compared to last year (In December, over 1,287,280 new vehicles were sold in the U.S.).
January 2023 also performed better than 2022 (Although it didn’t exceed the numbers obtained in 2021).
The current Automotive Manufacturing global market value is at $2.9 trillion. It’s growing at a CAGR of 3.1% after several decline years, where the market dropped by 0.6% between 2017 and 2022.
This trend also explains why wholesale auctions have declined 15.6% from record levels in January through November 2022. According to CNBC, the availability of new vehicles provides additional options for consumers and potentially better loan options from automaker’s financing arms.
In this article we will explore:
- The challenges of the automotive industry in 2023 (and the following years).
- The importance of using Big Data for Competitive Intelligence strategies
- The main challenges of building a successful Competitive Intelligence strategy
- Analyzing a Ford Assembly Plant using geolocation data
- In conclusion
The challenges of the automotive industry in 2023 (and the following years).
Even before the COVID pandemic, the automotive industry was facing various challenges. Since 2017 car sales have decreased despite the brands’ efforts to launch new, more affordable options.
Some of the pre-COVID challenges the industry was facing:
- Less demand vs. excess production and cost increase.
- Buyers demand new technological changes (For example, connected technologies).
- Increasing pressure for new and more sustainable options.
- Less interest for new generations to acquire vehicles.
As we said before, COVID-19 added more complicated scenarios to vehicle brands. Some of the challenges to overcome in the next year will be:
- Recover from manufacturing shutdowns and massive layoffs during the pandemic period.
- Overcome the global financial crisis affecting costs, production levels, and demand.
- The notorious decline of traditional car ownership and the growth of mobility services.
- Increase in demand for electric, self-driving, and connected cars.
The importance of using Big Data for Competitive Intelligence strategies
Undoubtedly, the automotive industry is at the forefront of decisive global changes. Changes in consumer demands, increasing competition, sales volatility, and cost pressures are pushing brands to integrate data-driven solutions, not only inside their cars, but also in their strategic approach.
By definition, competitive Intelligence consists of collecting relevant information from different sources to get a detailed scope of the market, competitors, and consumers to anticipate and respond to new challenges and threats before they happen.
The main challenges of building a successful Competitive Intelligence strategy
Competitive Intelligence brings significant benefits to companies. But in a fast-pacing industry like the automotive industry, it can take considerable effort to keep track of consumer trends, competitors’ strategic swifts, and external threats that can change the whole panorama (Like the chip shortage).
A new CI approach: Big Data, Artificial Intelligence…and Geolocation Data?
Big Data, AI tech, and Machine Learning solutions are becoming fundamental elements for automotive brands. Right now, decision-makers can access immense amounts of data from their users, market, and competitors to develop a highly effective strategy.
Understanding the necessity of companies to have meaningful insights, in PREDIK Data-Driven, we’ve developed a new approach to Competitive intelligence analysis.
Unlike most CI companies that focus their tracking on social media interactions, website performance, and sales calls, we obtain field intelligence by employing geolocation technology to analyze any company facility in the U.S.
Our methodology involves identifying movement patterns and connections between target locations and other facilities and companies with a specialized machine-learning algorithm and satellite data.
By doing this, we can draw connection maps between your competitors and their business environment (customers, suppliers, distributors, and more).
Analyzing a Ford Assembly Plant using geolocation data
Ford’s Assembly Plant in Claycomo, Missouri, encompasses 1,269 acres and 7,250 employees. This 70-year-old plant’s current production centers on the Ford E-Transit, Transit, and F-150.
We can analyze every business relationship involving this site using our competitive intelligence tool. For example, our analysis shows some of Ford’s main auto parts manufacturers: Piston Automotive (Kansas City), Tenneco Automotive-Walker (Nebraska), and Nexteer Automotive Plant (Michigan).
Also, we found their primary electronic manufacturer is Galaxy Electronics (North Carolina).
For this particular case, our CI detected business relationships for categories like:
- Aluminum supplier
- Auto body parts supplier
- Business management consultants
- Electrical suppliers
- Engineering consultants
- Metal suppliers
- Steel suppliers
Having the right competitive intelligence approach is crucial for every company in the automotive industry.
With rapidly changing market dynamics and technological advancements, companies must watch their competitors and stay informed of any developments or changes in the market. Competitive Intelligence solutions can provide valuable insights into the actions and strategies of any industry player, helping businesses make informed decisions and stay ahead of the competition.
By using our Competitive Intelligence solution, companies in the automotive industry can improve their market position, increase their profitability, and ultimately achieve long-term success.