Skip to Content

How could rising labor costs affect the U.S. automotive industry?

January 19, 2024 Article 6 min read
Mark Barrott
Wage increases and market uncertainty threaten to slow down the shift to electric vehicles. Plante Moran’s Mark Barrott discusses with Automotive World how and where automakers and their suppliers will continue to feel pressure.
Sparks flying in automotive factory.With market uncertainty, the automotive industry will face an added strain of competitive wages as they transition to electric vehicles. Plante Moran’s Mark Barrott highlights the criticality of cost margins and how the automakers and their suppliers must satisfy the wage increases demanded by workforces to retain top talent and make EVs profitable.

Barrott notes the transition to electrification may spark a battle for labor with U.S. automakers and create an opportunity for wage growth. However, suppliers are likely to face the most pressure from the labor competition and high material costs.

Read more to find out how the rising labor costs can affect automakers and their suppliers across the United States and threaten to slow the electrification process.

Related Thinking

Electric vehicle charging stations.
January 31, 2024

2024 is the year to invest in a long-term EV strategy

Article 4 min read
Electric vehicle charging at an (EV) car charging port
December 19, 2023

Chart your course in the changing auto industry: Key considerations for suppliers

Article 5 min read
Electric vehicle being assembled in a factory.
December 13, 2023

Virtual coffee break: EVs will drive a revolution of U.S. manufacturing

Webinar 15 min watch