#573 – Indiana’s Auto Industry to evade manufacturing slowdownPosted on
We have long admired the work done by the State of Indiana to enhance and encourage their manufacturing industry. That work continues to pay off for them, even in an otherwise slowing economy…
Indiana’s auto industry to evade manufacturing slowdown, on pace for banner year
Kris Turner, IndyStar
Automotive sales are projected to soar in 2016 and usher in another banner year for automakers, who are expected to remain unscathed by an industrywide slowdown in manufacturing.
The auto industry expects to sell or lease 17.7 million light-duty vehicles this year, a 2 percent increase from 2015. That news is a relief to auto manufacturers, which haven’t seen business trail off as it has in other manufacturing sectors.“At the end of the day, in 2015, we had the best sales year for autos since the Great Recession, and the prospects for growth this year also are pretty good,” said Chad Moutray, chief economist for the National Association of Manufacturers. “I would suspect we’ll have more than 17 million sold this year.
“We’re not just talking about the Big Three automakers who produce the traditional automobiles. We also have a lot of foreign automakers in the U.S., which has been an attractive destination for automakers.”
The news bodes well for Indiana, whose second-largest manufacturing sector is automotive. It is a $15.8 billion industry in the state.
The projected growth follows an upward trend in the automotive sector. Last year, 17.4 million new light vehicles were retailed, a 5.8 percent increase from 2014, according to the National Automobile Dealers Association.
The average transaction price of a new car or light truck was $33,269 in 2015, according to the association.