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.
Ranked: The Autonomous Vehicle Readiness of 20 Countries
This interactive visual shows the countries best prepared for the shift to autonomous vehicles, as well as the associated societal and economic impacts.
For the past decade, manufacturers and governments all over the world have been preparing for the adoption of self-driving cars—with the promise of transformative economic development.
As autonomous vehicles become more of a looming certainty, what will be the wider impacts of this monumental transition?
Which Countries are Ready?
Today’s interactive visual from Aquinov Mathappan ranks countries on their preparedness to adopt self-driving cars, while also exploring the range of challenges they will face in achieving complete automation.
The Five Levels of Automation
The graphic above uses the Autonomous Vehicles Readiness Index, which details the five levels of automation. Level 0 vehicles place the responsibility for all menial tasks with the driver, including steering, braking, and acceleration. In contrast, level 5 vehicles demand nothing of the driver and can operate entirely without their presence.
Today, most cars sit between levels 1 and 3, typically with few or limited automated functions. There are some exceptions to the rule, such as certain Tesla models and Google’s Waymo. Both feature a full range of self-driving capabilities—enabling the car to steer, accelerate and brake on behalf of the driver.
The Journey to Personal Driving Freedom
There are three main challenges that come with achieving a fully-automated level 5 status:
- Data Storage
Effectively storing data and translating it into actionable insights is difficult when 4TB of raw data is generated every day—the equivalent of the data generated by 3,000 internet users in 24 hours.
- Data Transportation
Autonomous vehicles need to communicate with each other and transport data with the use of consistently high-speed internet, highlighting the need for large-scale adoption of 5G.
- Verifying Deep Neural Networks
The safety of these vehicles will be dictated by their ability to distinguish between a vehicle and a person, but they currently rely on algorithms which are not yet fully understood.
Which Countries are Leading the Charge?
The 20 countries were selected for the report based on economic size, and their automation progress was ranked using four key metrics: technology and innovation, infrastructure, policy and legislation, and consumer acceptance.
The United States leads the way on technology and innovation, with 163 company headquarters, and more than 50% of cities currently preparing their streets for self-driving vehicles. The Netherlands and Singapore rank in the top three for infrastructure, legislation, and consumer acceptance. Singapore is currently testing a fleet of autonomous buses created by Volvo, which will join the existing public transit fleet in 2022.
India, Mexico, and Russia lag behind on all fronts—despite enthusiasm for self-driving cars, these countries require legislative changes and improvements in the existing quality of roads. Mexico also lacks industrial activity and clear regulations around autonomous vehicles, but close proximity to the U.S. has already garnered interest from companies like Intel for manufacturing autonomous vehicles south of the border.
How Autonomous Vehicles Impact the Economy
Once successfully adopted, autonomous vehicles will save the U.S. economy $1.3 trillion per year, which will come from a variety of sources including:
- $563 billion: Reduction in accidents
- $422 billion: Productivity gains
- $158 billion: Decline in fuel costs
- $138 billion: Fuel savings from congestion avoidance
- $11 billion: Improved traffic flow and reduction of energy use
Transportation will be safer, potentially reducing the number of accidents over time. Insurance companies are already rolling out usage-based insurance policies (UBIs), which charge customers based on how many miles they drive and how safe their driving habits are.
Long distance traveling in autonomous vehicles provides a painless alternative to train and air travel. The vehicles are designed for comfort, making it possible to sleep overnight easily—which could also impact the hotel industry significantly.
- Real Estate
An increase in effortless travel could lead to increased urban sprawl, as people prioritize the convenience of proximity to city centers less and less.
With the adoption of autonomous vehicles projected to reduce private car ownership in the U.S. to 43% by 2030, it’s disrupting many other industries in the process.
Palladium: The Secret Weapon in Fighting Pollution
The world is in critical need of palladium. It’s a crucial metal in reducing emissions from gas-powered vehicles, and our secret weapon for cleaner air.
Despite the growing hype around electric vehicles, conventional gas-powered vehicles are expected to be on the road well into the future.
As a result, exhaust systems will continue to be a critical tool in reducing harmful air pollution.
The Power of Palladium
Today’s infographic comes to us from North American Palladium, and it demonstrates the unique properties of the precious metal, and how it’s used in catalytic converters around the world.
In fact, palladium enables car manufacturers to meet stricter emission standards, making it a secret weapon for fighting pollution going forward.
The world is in critical need of palladium today.
It’s the crucial metal in reducing harmful emissions from gas powered vehicles—as environmental standards tighten, cars are using more and more palladium, straining global supplies.
What is Palladium?
Palladium is one of six platinum group metals which share similar chemical, physical, and structural features. Palladium has many uses, but the majority of global consumption comes from the autocatalyst industry.
In 2018, total gross demand for the metal was 10,121 million ounces (Moz), of which 8,655 Moz went to autocatalysts. These were the leading regions by demand:
- North America: 2,041 Moz
- Europe: 1,883 Moz
- China: 2,117 Moz
- Japan: 859 Moz
- Rest of the World: 1,755 Moz
Catalytic Converters: Palladium vs. Platinum
The combustion of gasoline creates three primary pollutants: hydrocarbons, nitrogen oxides, and carbon monoxide. Catalytic converters work to alter these poisonous and often dangerous chemicals into safer compounds.
In order to control emissions, countries around the world have come up with strict emissions standards that auto manufacturers must meet, but these are far from the reality of how much pollutants are emitted by drivers every day.
Since no one drives in a straight line or in perfect conditions, stricter emissions testing is coming into effect. Known as Real Driving Emissions (RDE), these tests reveal that palladium performs much better than platinum in a typical driving situation.
In addition, the revelation of the Volkswagen emission scandal (known as Dieselgate) further undermines platinum use in vehicles. As a result, diesel engines are being phased out in favor of gas-powered vehicles that use palladium.
Where does Palladium Come From?
If the world is using all this palladium, where is it coming from?
Approximately, 90% of the world’s palladium production comes as a byproduct of mining other metals, with the remaining 10% coming from primary production.
In 2018, there was a total of 6.88 million ounces of mine supply primarily coming from Russia and South Africa. Conflicts in these jurisdictions present significant risks to the global supply chain. There are few North American jurisdictions, such as Ontario and Montana, which present an opportunity for more stable primary production of palladium.
Long Road to Extinction
The current price of palladium is driven by fundamental supply and demand issues, not investor speculation. Between 2012 and 2018, an accumulated deficit of five million ounces has placed pressures on readily available supplies of above-ground palladium.
Vehicles with internal combustion engines (ICE) will continue to dominate the roads well into the future. According to Bloomberg New Energy Finance, it will not be until 2040 that ICE vehicles will dip below 50% of new car sales market, in favor of plug-in and hybrid vehicles. Stricter emissions standards will further bolster palladium demand.
The world needs stable and steady supplies of palladium today, and well into the future.
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