As governments worldwide set target dates to transition away from fossil fuels, substantial opportunities exist to build electric vehicles, manufacture parts, and develop infrastructure for the automation and production industries. To situate themselves in a strong market position, industry leaders must embrace electrification as a strategic imperative, foster a culture of innovation and cross industry collaboration, and prioritize sustainability and environmental stewardship.
Electrification as a strategic imperative
To capitalize on the growth of EV sales, automakers, suppliers, parts manufacturers, and other related industry leaders must develop a well planned strategy to improve their positions in the market. Developing a successful strategy begins with knowing where to focus research.
Knowing the market — Conduct research to recognize which vehicles are in demand in various markets while monitoring sales outlooks for five, ten years, and longer.
Knowing the product — EVs and related technologies are complicated, and extensive knowledge and training are required to build a successful product.
Knowing your workforce — Determine who has the skills to work with EVs and who needs training on the latest technologies and innovations. Understanding shortfalls will determine hiring needs.
Knowing the cost — Estimate all financial expenditures before adding products, including equipment and facility upgrades, marketing expenses, employee training, parts costs, and supply chain changes.
Knowing the supply chain — Who supplies the parts and materials? Where are the metals sourced? Where are they shipped from? What are the potential breakdowns in the distribution chains? These questions must be answered.
Knowing government laws, regulations, and tax incentives — Federal, state, and local governments have different policies regarding EVs. A company should consider hiring well-versed personnel in urban planning, building codes, and public infrastructure initiatives. Don't overlook the value of tax experts, as millions of dollars in government subsidies and incentives are available for private businesses.
Knowing the customer — The most important consideration is how EVs will sell. Parts manufacturers must build relationships with vehicle companies to understand and meet their demands. Automakers must identify what their customers want to drive and address concerns such as sticker price, repair costs, range anxiety, and the availability of charging stations.
Read these recommendations in full in our Integr8 Playbook, "Wired for Change: Electrification and the Future of Mobility," here.
