Four Disruptive Trends Transforming the Auto Industry
From a creeping crawl to a speeding bullet, the automobile has rapidly improved—and so have consumer demands.
The Ford Model T revolutionized the industry, and consumer demand catapulted it into one of the longest production runs in history.
However, consumers gradually began to desire more than just one reliable, wallet-friendly option. Today, numerous models are discontinued each year—and new features are frequently introduced to keep up with changing preferences.
This infographic from AutoTRADER.ca, Canada’s largest automotive marketplace, explores some current trends shaping the auto industry: luxury trucks, electric vehicles, millennial habits, and online research.
1. The Rise of Luxury Trucks
Most people associate trucks with off-roading and rugged work. But over the years, they’ve become much more—consumers are starting to see them as status symbols.
In addition to power, luxury trucks have features that maximize comfort and style:
- Spacious seating
- Large chrome wheels
- Advanced safety features
- Rear-seat touch screen entertainment
- Motorized tailgates and running boards
- Panoramic sunroofs
While most vehicle segments have seen a decline in the market, luxury trucks have grown in market share.
|Year||$80-$100K truck listings (% of overall truck listings)|
High-end trucks offer both functional strength and premium features, and continue to drive growth in the auto industry.
2. Electric Vehicles: A Small but Growing Market
Electric vehicle (EV) listings are growing from low initial numbers, and their overall market share is still limited. However, the demand for EVs is growing rapidly—from 2017 to 2018, AutoTRADER.ca’s EV market doubled.*
Note: AutoTRADER.ca’s EV market excludes hybrids.
On top of that, EVs are selling faster. In 2018, it took 15 days for an EV listing to turnover, compared to 27 days in 2016.
What has caused this surge in popularity?
- Environmental Impact: EVs are nearly five times more efficient at converting stored energy than traditional cars.
- Lower Costs: On average, battery EVs save Canadian households about 71% in annual fuel and maintenance.
- Less Traffic: Certain areas like British Columbia, Ontario, California, and New York offer high-occupancy vehicle (HOV) lane access to single-occupant EVs.
As various regions take steps to remove gas-powered vehicles from the roads, the EV market will continue to expand.
3. Millennial Purchasing Habits
While many think that millennials aren’t buying cars, the data tells a different story. In the first quarter of 2018, millennials accounted for all new vehicle sales growth in the North American auto industry.
Millennials are still buying vehicles—they’re just waiting longer than previous generations did. Cash-strapped millennials are up to nine times more likely to delay a vehicle purchase until they’re triggered by a life change such as switching jobs, getting married, or having children.
Main Purchase Trigger by Generation
|Want to change from existing vehicle||Life change||Other|
Note: numbers may not sum to 100 due to rounding.
To help with purchase decisions, millennials refer to video content and draw on personal networks. They also prefer to visit online marketplaces over physical dealerships.
4. Online Research
Millennials aren’t the only ones turning to the internet for help: roughly eight in ten buyers use online sources to help them simplify the decision-making process.
Automotive marketplaces are the most popular resource—used by 77% of online buyers. What makes them so popular?
- Pricing guidelines give buyers confidence in the fair market price they can expect to pay
- Comparison tools help buyers choose the body type, make, and model of their next vehicle
- Reviews by owners and industry experts provide unbiased opinions
- Location-based searches help buyers find local listings from dealers and private sellers
All of this easily accessible information has made online marketplaces the go-to source for consumers’ automobile needs.
A Trusted Guide
To keep up with rapid change in auto industry trends, Canadians can depend on autoTRADER.ca.
AutoTRADER.ca is Canada’s most trusted place to buy and sell cars, and is a one-stop shop for:
- Industry news
- Reviews and advice
- Valuation and car buying tools
- Price comparisons
- The largest selection of new and used vehicles nationwide
Armed with autoTRADER.ca’s transparent and unbiased advice, Canadians can confidently find their perfect vehicle.
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Visualizing Raw Material Inflation in Canada
Over the last year, raw material inflation in Canada was 37%. Which material prices jumped the most, and how does this impact manufacturers?
Raw Material Inflation in Canada
Inflation in Canada is climbing, and it has impacted the raw materials manufacturers use to produce goods. In fact, raw material prices have climbed 37% year-over-year on average.
More than half of manufacturers say this is one of their top challenges. In this graphic from Canadian Manufacturers & Exporters (CME), we show which materials have seen the biggest price spikes over the last year.
Inflation by Raw Material
The table below shows the rate of inflation in Canada for select raw materials from May 2021 to May 2022.
|Raw Material||Category||Price Change
(May 2021-May 2022)
|Crude Oil & Bitumen||Crude Energy||85.0%|
|Natural Gas||Crude Energy||50.3%|
|Beans, Peas, & Lentils||Crops||43.3%|
|Logs & Forestry Products||Forestry Products & Natural Rubber||42.1%|
|Scrap Metal||Metal Ores & Scrap||40.3%|
|Fish & Fishery Products||Animal Products||23.7%|
|Lead & Zinc Ores||Metal Ores & Scrap||21.2%|
|Cattle & Calves||Animal Products||10.2%|
|Eggs in Shell||Animal Products||8.4%|
|Sand, Gravel, & Clay||Non-metallic Minerals||8.1%|
|Fresh Fruit & Nuts||Crops||8.0%|
|Nickel Ores||Metal Ores & Scrap||5.8%|
|Tin, Iron Alloys, & Other Ores||Metal Ores & Scrap||3.3%|
|Gold Ores||Metal Ores & Scrap||2.1%|
|Natural Rubber||Forestry Products & Natural Rubber||1.4%|
Crude energy materials led the rise, with the price of coal nearly doubling over the last year. Oil and natural gas prices also rose amid war-related supply constraints and higher demand as people got back to pre-pandemic activities. This has far-reaching consequences for manufacturers given that oil and gas is widely used for transportation and heat, and is an input in thousands of products.
Wheat inflation in Canada reached 73.4%. The cost increase was partly due to a drought in Western Canada that reduced Canadian wheat production by nearly 40% from 2020 to 2021. Internationally, the Russia-Ukraine conflict also threatened wheat supply as the two countries normally account for almost a third of global wheat exports. Wheat inflation has affected food and fuel manufacturers the most, as it is used for livestock feed, biofuels, and a wide range of human food.
Simultaneously, the price of lumber increased by 42.1% because of an increased demand for housing, and flooding in British Columbia that reduced supply. This affects manufacturers who produce things like timber and plywood, and ultimately influences the cost of housing.
How Inflation in Canada Affects Manufacturers
Raw material inflation drives up manufacturers’ cost of doing business. Unfortunately, it isn’t the only price pressure they face. Ocean shipping costs are more than five times higher compared to when the pandemic began. Truck transportation costs rose by 15% from March 2021 to March 2022, based on the latest available data.
On top of this, manufacturers have to contend with supply chain disruptions, global uncertainty, and labor shortages. What can manufacturers do? A majority of manufacturers have been raising prices to pass on some of the additional costs to consumers.
|Response to Supply Chain Challenges||% of Manufacturers|
|Delay fulfilling customer orders||79%|
|Find alternative supplier of raw materials and other inputs||69%|
|Lay off workers||9%|
Over the longer term, manufacturers say they plan to build stronger relationships with customers and suppliers, source critical raw materials from two suppliers, and bring their supplier base and production closer to home.
Looking ahead, most manufacturers say they expect supply chain issues to be resolved some time in 2023—though they were last asked this question before the war in Ukraine began. The Bank of Canada also expects inflation in Canada to ease in the second half of 2023. In the meantime, manufacturers will be forced to adapt to rising costs.
Learn more about how CME helps manufacturers grow at home and abroad through programs, services, and advocacy.
Operational Health Tech: A New Billion Dollar Market
Operational health tech is poised to be a multi-billion dollar industry. This graphic breaks down how its disrupting healthcare as we know it.
Operational Health Tech: A New Billion Dollar Market
Many lessons were learned throughout the COVID-19 pandemic, but what has become most apparent is the need to invest in healthcare on all fronts. In fact in just a few short years, businesses, governments, and consumers have had to entirely reassess healthcare in ways not quite seen before.
What’s more, this elevated importance placed on health could be here to stay, and one area in particular is poised for significant growth: operational health tech.
The graphic above from our sponsor Bloom Health Partners dives into the burgeoning market that is operational health tech, and reveals the key driving forces behind it.
What is Operational Health?
To start, operational health is an industry that provides health services to employees to help keep companies running smoothly.
A critical piece of operational health is workplace health, which is expected to soar in value. From 2021 to 2025, the market for workplace health is expected to grow 200% from $6.5 billion to $19.5 billion.
The industry is undergoing a tremendous amount of innovation, specifically in relation to technological advances.
Operational Health Tech: Disrupting Healthcare
The operational health tech industry is disrupting traditional healthcare by providing direct services to employees in the workplace.
For decades now, the U.S. has increasingly become a statistical outlier for healthcare spending relative to health outcomes. For instance, the average American incurs $9,000 in healthcare spending per year, nearly twice that of OECD countries, yet life expectancy is flatlining while other countries see rises.
A worsening and increasingly expensive health dynamic makes the environment ripe for disruption and is allowing for new ideas to be brought to the table.
In addition, people are already responding to these inefficient practices by shifting greater emphasis on health within the job market. For example, studies show that workers care more about healthcare benefits over the salaries when choosing an employer.
Going forward, employees will gravitate towards employers that provide standout health benefits like workplace healthcare options offered by operational health. Here are some additional factors that act as catalysts for this space.
1. Healthcare as Smart Business
What do companies that rank as some of the best to work for have in common? First, they all tend to outperform relative to the S&P 500 on a cumulative stock performance basis. Second, many offer superior healthcare benefits.
Moreover, from 2012 to 2022, companies that were the best to work for saw shares appreciate nearly 500%, compared to around 300% for the broader market. Data like this suggests investing in healthcare and keeping employees happy is smart business that pays dividends.
2. Healthcare as a Differentiator
Since 2020, labor markets have changed dramatically. As a result, employees now have more options and are much more selective about where they work. This is evident from the difference between job openings and hires which has risen to unrecognizable levels. For example, the data shows that there are nearly 12 million job openings, but only around 6-7 million hires in 2022.
Altogether, with an oversupply of jobs relative to workers, employers will have to find new ways to differentiate. One way to stand out is through healthcare and initiatives around operational health tech.
3. The Looming Mental Health Epidemic
Today some 700 million people suffer from some form of a mental health condition and COVID-19 has continued to exacerbate the problem.
Moreover, the cost of mental health for the global economy is estimated to be a whopping $6 trillion by 2030, over double compared to the $2.5 trillion figure in 2010.
Under the umbrella of services operational health tech covers, mental health will stand to benefit. Especially in the years to come as we look for new ways to combat its mounting costs.
Investing in Operational Health Tech
Bloom Health Partners is an operational health tech company looking to revolutionize workplace health by supplying employers with data to better understand their employee base and business.
One way Bloom stands out is with Bloom Shield—its flagship cloud-based big data platform for employee health data management. With Bloom Shield, new health insights become available to make better decisions. Employers can get insight into demographic data and age trends within the workplace, pre-screening detection for cancer and diabetes, and testing for management to tackle the spread of disease.
Click here to learn more about investing in operational health tech with Bloom Health Partners.
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