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 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.
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:
|Rank||State||Canadian imports (Intermediate Goods, $USD)|
|#3||New York||$11.6 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.
Animation: U.S. Electric Vehicle Sales (2010-19)
This stunning animation visualizes the last nine years of U.S. electric vehicle sales. We also look at who will lead the race in the coming years.
It’s challenging to get ahead, but it’s even harder to stay ahead.
For companies looking to create a sustainable competitive advantage in a fast-moving, capital intensive, and nascent sector like manufacturing electric vehicles, this is a simple reality that must be accounted for.
Every milestone achieved is met with the onset of new and more sophisticated competitors – and as the industry grows, the stakes grow higher and the market gets further de-risked. Then, the real 800-lb gorillas start to climb their way in, making competition even more fierce.
Visualizing U.S. EV Sales
Today’s animation uses data from InsideEVs to show almost nine years of U.S. sales in the electric vehicle market, sorted by model of car.
It paints a picture of a rapidly evolving market with many new competitors sweeping in to try and claim a stake. You can see the leads of early successes eroded away, the increasing value of scale, and consumer preferences, all rolled into one nifty animation.
The Tesla Roadster starts with a very early lead, but is soon replaced by the Nissan Leaf and Chevrolet Volt, which are the most sold models in the U.S. from 2011-2016.
Closer to the end, the Tesla Model S rises fast to eventually surpass the Leaf by the end of 2017. Finally, the scale of the rollout of the Tesla Model 3 is put into real perspective, as it quickly jumps past all other models in the span of roughly one year.
The Gorilla Search
While Tesla’s rise has been well-documented, it’s also unclear how long the company can maintain an EV leadership position in the North American market.
As carmakers double-down on EVs as their future foundations, many well-capitalized competitors are entering the fray with serious and ambitious plans to make a dent in the market.
In the previous animation, you can already see there are multiple models from BMW, Volkswagen, Honda, Fiat, Ford, Toyota, Nissan, and Chevrolet that have accumulated over 10,000 sales – and as these manufacturers continue to pour capital in the sector, they are likely posturing to try and find how to create the next mass market EV.
Of these, Volkswagen seems to be the most bullish on a global transition to EVs, and the company is expecting to have 50 fully electric models by 2025 while investing $40 billion into new EV technologies (such as batteries) along the way.
The Chinese Bigfoot?
However, the 800-lb gorilla could come from the other side of the Pacific as well.
Source: The Driven
Chinese company BYD – which is backed by Warren Buffett – is currently the largest EV manufacturer in the world, selling 250,000 EVs in 2018.
The Chinese carmaker quietly manufacturers buses in the U.S. already, and it has also announced future plans to sell its cars in the U.S. as well.
How will such an animation of cumulative U.S. EV sales look in the future? In such a rapidly evolving space, it seems it could go any which way.
How Much Oil is in an Electric Vehicle?
It is counterintuitive, but electric vehicles are not possible without oil – these petrochemicals bring down the weight of cars to make EVs possible.
How Much Oil is in an Electric Vehicle?
When most people think about oil and natural gas, the first thing that comes to mind is the gas in the tank of their car. But there is actually much more to oil’s role, than meets the eye…
Oil, along with natural gas, has hundreds of different uses in a modern vehicle through petrochemicals.
Today’s infographic comes to us from American Fuel & Petrochemicals Manufacturers, and covers why oil is a critical material in making the EV revolution possible.
It turns out the many everyday materials we rely on from synthetic rubber to plastics to lubricants all come from petrochemicals.
The use of various polymers and plastics has several advantages for manufacturers and consumers:
- Easy to Shape
- Flame Retardant
Today, plastics can make up to 50% of a vehicle’s volume but only 10% of its weight. These plastics can be as strong as steel, but light enough to save on fuel and still maintain structural integrity.
This was not always the case, as oil’s use has evolved and grown over time.
Not Your Granddaddy’s Caddy
Plastics were not always a critical material in auto manufacturing industry, but over time plastics such as polypropylene and polyurethane became indispensable in the production of cars.
Rolls Royce was one of the first car manufacturers to boast about the use of plastics in its car interior. Over time, plastics have evolved into a critical material for reducing the overall weight of vehicles, allowing for more power and conveniences.
Rolls Royce uses phenol formaldehyde resin in its car interiors
Henry Ford experiments with an “all-plastic” car
About 20 lbs. of plastics is used in the average car
Manufacturers begin using plastic for interior decorations
Headlights, bumpers, fenders and tailgates become plastic
Engineered polymers first appear in semi-structural parts of the vehicle
The average car uses over 1000 plastic parts
Electric Dreams: Petrochemicals for EV Innovation
Plastics and other materials made using petrochemicals make vehicles more efficient by reducing a vehicle’s weight, and this comes at a very reasonable cost.
For every 10% in weight reduction, the fuel economy of a car improves roughly 5% to 7%. EV’s need to achieve weight reductions because the battery packs that power them can weigh over 1000 lbs, requiring more power.
Today, plastics and polymers are used for hundreds of individual parts in an electric vehicle.
Oil and the EV Future
Oil is most known as a source of fuel, but petrochemicals also have many other useful physical properties.
In fact, petrochemicals will play a critical role in the mass adoption of electric vehicles by reducing their weight and improving their ranges and efficiency. In According to IHS Chemical, the average car will use 775 lbs of plastic by 2020.
Although it seems counterintuitive, petrochemicals derived from oil and natural gas make the major advancements by today’s EVs possible – and the continued use of petrochemicals will mean that both EVS and traditional vehicles will become even lighter, faster, and more efficient.
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