Like with all industries, transportation is always moving forward and adapting.
However, because the industry has such a major influence on other sectors, understanding what’s ahead can help the public as well as business leaders plan and adjust better.
Increased focus on sustainable transportation methods
Over the last few years, the increases in fires, storms, and other events have brought the climate crisis into greater light.
As a result, shareholders of major companies have started requiring that companies disclose their climate risks and take on more responsibility for the influence they have on the environment.
In addition, private equity firms and investors are asking companies how they plan to take care of the planet.
Consumers have begun prioritizing sustainability and they don’t want to be associated with environmentally irresponsible brands, which puts pressure on companies from multiple directions. Ultimately forcing them focus more on environmental and social, standards. Within that, electric vehicles are going to be a bigger part of companies’ overall ESG strategies.
Supply chain disruption
Due to the global energy crisis as well as COVID-19, there’s a shortage of silicon. Manufacturers use silicon to make microchips in most vehicles and other components like gaskets and sealants.
Because of this, manufacturers are struggling to build enough vehicles to meet demand which means customers are paying more and have fewer choices when they go to buy.
Shortages aren't easily resolved, so the transportation industry will have to deal with supply chain disruption well into the coming year.
As new companies are arriving in the market, the demand for battery supplies is going up and experts are predicting manufacturers will struggle to get through 2022, and moving into 2023, there might even be a lithium shortage as demand outstrips supply.