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The Great Lakes Economy: The Growth Engine of North America

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We don’t often think about the states and Canadian provinces surrounding the Great Lakes as its own economy – but maybe we should.

After all, the region is tightly integrated in terms of trade. It alone accounts for more than 50% of all U.S./Canadian bilateral border trade and sees over 200 million tons of cargo shipped annually. If it were its own country, it would have a GDP of US$6 trillion – making it the third biggest economy in the world.

An Economic Powerhouse

Today’s infographic comes from the Council of the Great Lakes Region, and it breaks down the massive economic impact and trade partnerships that stem from the region’s prolific waterways, and the people living around them.

The Great Lakes Economy: The Growth Engine of North America

The Great Lakes Region has always been a center of trade. From the fur trade of the 17th century to modern day, the area’s navigable terrain, waterways, and ports have made it an easy place for goods to exchange hands.

Overview: The Great Lakes Economy

The Great Lakes Region includes eight states (Minnesota, Wisconsin, Illinois, Indiana, Michigan, New York, Ohio, and Pennsylvania) and two Canadian provinces (Ontario and Quebec) that surround the five interconnected freshwater bodies known as the Great Lakes. The area is home to 107 million people, 51 million jobs, and a GDP of US$6 trillion – making the Great Lakes Economy a powerhouse on an international level.

In particular, the region is well-known globally for its manufacturing prowess. It’s home to automobile and aerospace giants like Ford, GM, Chrysler, Bombardier, GE Aviation, and Magna International, and also many other diverse industries. Education and health, shipping and logistics, agriculture, mining and energy, tourism, and finance are some of the other major industries that generate business for the region.

And despite having a border, the Great Lakes Economy is highly integrated. Each year, there is $278 billion in bilateral U.S.-Canadian trade in the Great Lakes area – more than the entire region trades with countries like Mexico, China, UK, Germany and Japan combined.

Cross-Border Customers

The relationship between U.S. states and Canadian provinces in the Great Lakes Region is unique, and relies on goods flowing both ways.

For U.S. companies in the region, 78% of the imports they bring in from Canada are “intermediate goods”, which are raw materials, parts and components, and services that are used to produce other goods and services in the United States.

Here’s a breakdown of Canadian intermediate goods bought by U.S. states:

RankStateCanadian imports (Intermediate Goods, $USD)
#1Illinois$25.5 billion
#2Michigan$15.7 billion
#3New York$11.6 billion
#4Ohio$9.9 billion
#5Minnesota$7.6 billion
#6Pennsylvania$7.4 billion
#7Indiana$5.3 billion
#8Wisconsin$3.0 billion
Total$86.0 billion

Going the other way, Canadians buy billions of dollars worth of goods from the Great Lake states as well.

In fact, Canada is actually the biggest international customer for each state in the region – something we’ve previously shown in our USA/Canada trade infographic as well.

Bridge Over Troubled Water

Although rhetoric against the U.S./Canadian trade relationship has ramped up in the recent months, there is still one enduring symbol that exemplifies the intimate trade relationship of the two countries in the Great Lakes Economy: the Ambassador Bridge between Detroit, Michigan and Windsor, Ontario.

Each day, over this one 1.3 mi (2.3 km) suspension bridge alone, close to 10,000 trucks pass to generate close to US$500 million of international trade between the two nations.

That’s equal to 25% of all bilateral trade between Canada and the U.S. Amazingly, more bilateral trade happens over this single bridge than the U.S. does in its entirety with France, Germany, South Korea, or the United Kingdom.

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Automotive

The Evolution of Hydrogen: From the Big Bang to Fuel Cells

Hydrogen and fuel cell technology harnesses the power of the universe to bring clean energy on Earth. Here is its potential.

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It all started with a bang…the big bang!

The explosive power of hydrogen fueled a chain reaction that led to the world we have today.

Now this power is being deployed on Earth to supply the energy needs of tomorrow.

Visualizing the Power of Hydrogen

Today’s infographic comes to us from the Canadian Hydrogen and Fuel Cell Association, and it outlines how hydrogen and fuel cell technology is harnessing the power of the universe to potentially fuel an energy revolution.

The Evolution of Hydrogen: From the Big Bang to Fuel Cells

What is Hydrogen, and How’s it Used?

With one proton and one electron, hydrogen sits at the very beginning of the periodic table.

Despite hydrogen being the most common molecule in the universe, it is rarely found in its elemental state here on Earth. In fact, almost all hydrogen on the planet is bonded to other elements and can only be released via chemical processes such as steam reforming or electrolysis.

There are five ways hydrogen is being used today:

  1. Building heat and power
  2. Energy storage and power generation
  3. Transportation
  4. Industry energy
  5. Industry feedstock

However, what really unleashes the power of hydrogen is fuel cell technology. A fuel cell converts the chemical power of hydrogen into electrical power.

Hydrogen Unleashed: The Fuel Cell

In the early 1960’s, NASA first deployed fuel cells to power the electrical components of the Gemini and Apollo space capsules. Since then, this technology has been deployed in everything from the vehicle you drive, the train you take, and how your favorite products are delivered to your doorstep.

Nations around the world are committing to build hydrogen fueling stations to meet the growth in adoption of fuel cell technology for transportation.

Hydrogen: A Green Energy Solution

Hydrogen fuel and fuel cell technology delivers green solutions in seven ways.

  1. Decarbonizing industrial energy use
  2. Acting as a buffer to increase energy system resilience
  3. Enabling large-scale renewable energy integration and power generation
  4. Decarbonizing transportation
  5. Decarbonizing building heat and power
  6. Distribution energy across sectors and regions
  7. Providing clean feedstock for industry

According to a recent report by McKinsey, hydrogen and fuel cell technology has the potential to remove six gigatons of carbon dioxide emissions and employ more than 30 million people by 2050, all while creating a $2.5-trillion market.

This is technology that can be deployed today, with the potential to transform how we live and power our economies in a sustainable way.

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Automotive

Visualizing EV Sales Around the World

With global sales hitting new milestones and adoption rates rising, are electric vehicles now becoming a mainstream option for drivers around the world?

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electric vehicle sales

It took five years to sell the first million electric cars. In 2018, it took only six months.

The Tesla Model 3 also passed a significant milestone in 2018, becoming the first electric vehicle (EV) to crack the 100,000 sales mark in a single year. The Nissan LEAF and BAIC EC-Series are both likely to surpass the 100,000 this year as well.

Although the electric vehicle market didn’t grow as fast as some experts initially projected, it appears that EV sales are finally hitting their stride around the world. Below are the countries where electric vehicles are a biggest part of the sales mix.

Electric vehicle sales

The EV Capital of the World

Norway, after amassing a fortune through oil and gas extraction, made the conscious decision to create incentives for its citizens to purchase electric vehicles. As a result, the country is the undisputed leader in EV adoption.

In 2018, a one-third of all passenger vehicles were fully electric, and that percentage is only expected to increase in the near future. The Norwegian government has even set the ambitious target of requiring all new cars to be zero-emission by 2025.

That enthusiasm for EVs is spilling over to other countries in the region, which are also seeing a high percentage of EV sales. However, the five countries in which EVs are the most popular – Norway, Iceland, Sweden, Netherlands, and Finland – only account for 0.5% of the world’s population. For EV adoption to make any real impact on global emissions, drivers in high-growth/high–population countries will need to opt for electric powered vehicles. (Of course power grids will need to get greener as well, but that’s another topic.)

China’s Supercharged Impact

One large economy that is embracing plug-in vehicles is China.

The country leads the world in electric vehicle sales, with over a million new vehicles hitting the roads in 2018. Last year, more EVs were sold in Shenzhen and Shanghai than any country in the world, with the exception of the United States.

China also leads the world in another important metric – charging stations. Not only does China have the highest volume of chargers, many of them allow drivers to charge up faster.

Electric vehicle charging stations

Accelerating from the Slow Lane

In the United States, electric vehicle sales are rising, but they still tend to be highly concentrated in specific areas. In around half of states, EVs account for fewer than 1% of vehicle sales. On the other hand, California is approaching the 10% mark, a significant milestone for the most populous state.

Nationally, EV sales increased throughout 2018, with December registering nearly double the sales volume of the same month in 2017. Part of this surge in sales is driven by the Tesla’s Model 3, which led the market in the last quarter of 2018.

U.S. Electric vehicle sales

North of the border, in Canada, the situation is similar. EV sales are increasing, but not fast enough to meet targets set by the government. Canada aimed to have half a million EVs on the road by 2018, but missed that target by around 400,000 vehicles.

The big question now is whether the recent surge in sales is a temporary trend driven by government subsidies and showmanship of Elon Musk, or whether EVs are now becoming a mainstream option for drivers around the world.

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