Looking Toward the Future: OTC at the 2022 Southern Automotive Conference

OTC Industrial Technologies and its Air Supply and Pumps and Motor Technologies teams were in Atlanta, Georgia, from October 5th through the 7th for the 2022 Southern Automotive Conference (SAC).

As we navigate the changes impacting us all, from fallout after a pandemic, to supply chain and materials issues, to labor challenges and new technologies, SAC is an opportunity to take the pulse of our industry. It’s a chance to network, listen to industry leaders, see firsthand new technologies and innovations, and discover new vendors and suppliers.

This year, the conference didn’t disappoint. Let’s look at our top takeaways from the SAC.

5 Takeaways from the 2022 Southern Automotive Conference

This year’s event included everything from keynotes on electric vehicles and the industry outlook, to breakout sessions on artificial intelligence, supply chain solutions, diversity and inclusion, and more.

It was a lot to cover in just a few days. Here’s what we see shaping the industry in the years to come.

1.     Electric Vehicles Making a Move

It seemed like everyone at the show was talking about electric vehicles (EVs). There is a push to adopt more EV and electric battery technology in the future, but many in the industry are trying to understand what it means. What will the future look like? In the next five years, are we going to see 600,000 electric vehicles on the road, or 6 million?

There are still questions about how markets will react to EVs. What new advancements or technologies will shape the industry? Can the power grid handle an influx of new electric cars? Are there enough plants and suppliers to meet future demand? Will manufacturers overestimate demand and invest too much and overwhelm market appetite?

While some people see EVs as the wild west of automotive manufacturing, a potentially high-risk and high-reward market, there is no denying the impact they will have. Even the industry experts and analysts excited about the opportunity are tentative in forecasting what the future will look like.

2.     The Future Is Looking Green

There is an increasing drive toward sustainability and green technologies in the automotive industry.

Electric vehicles are one aspect of this drive, but OEMs and automotive manufacturers are also looking at internal opportunities to increase sustainability. These include technologies and initiatives to reduce emissions, reduce their carbon footprint and energy usage, and how facilities can decrease their environmental impact.

Today, the prospects to be more environmentally responsible are more appealing than they have ever been. Many industry leaders see cutting energy use and emissions as an opportunity to reduce costs as well as enhance their brand. Look for more companies to invest in green technologies and sustainability initiatives.

3.     The DIRECTAIR® Outsourced Compressed Air Service Is Having an Impact

As companies look at reducing costs and energy usage, excitement is building for compressed air services from DIRECTAIR®.

There is a need for reliable compressed air service for automotive battery plants and electric vehicle manufacturing. This means larger compressed air stations, more complex installations, and a much higher cost if there is downtime or compressed air problems. This makes the compressed air service from DIRECTAIR® much more appealing for manufacturers who see risk in attempting to plan and manage compressed air internally.

Using the service, manufacturers can reduce energy use, ensure a reliable cost for compressed air, and enjoy guaranteed uptime. As companies shift production to EVs, more will be investigating DIRECTAIR® for their compressed air utility.

4.     Cost Reduction and Increased Productivity

With the current labor force issues, increased material prices, and price sensitivity in the markets, automotive manufacturers and OEMs are under even more pressure to reduce costs and increase productivity.

This drive is pushing companies to explore new technologies and systems. In the past, Industry 4.0, big data analytics, and IOT (Internet of Things) were aspirational concepts for many companies, but the lower cost of many systems and automation tools has made adoption of technology easier. There’s a lower cost of entry, and a clear ROI (Return on Investment) for implementing new systems. This includes automation, advanced robotics, and artificial intelligence.

As pressure increases on automotive manufacturers, expect more companies to look at ways to reduce costs and increase productivity.

5.     Excitement (and Uncertainty) About the Future

Typically, whether it is a new technology, a new market, consumer demand or an industry crisis, there is a direction that industry leaders can identify. Attendees at a conference have a clear message to bring back to their coworkers.

Today, as companies continue to grapple with the end of the pandemic and global markets still reeling from disruption and outside pressures, there’s more uncertainty. Electric vehicles are a massive opportunity for our industry, but no one is sure of the pace of adoption for EVs. New plants are needed for batteries and vehicles, but no one is sure of how battery technology may change. Will the production technology of today be what batteries will need five years from now?

Business leaders and analysts are excited about the future, but still have questions on the next steps for companies.

Looking Ahead to the Future for the Automotive Industry

The people we spoke to at the show were overall excited and positive about the future. There’s a push for more EV plants across the country. There are programs for workforce development, new technology and automation systems, and plans for strengthening the supply chain.

The Southern United States has become a centerpiece for new automotive investment in recent years, and manufacturers now see a chance to optimize and capitalize on that investment.

If you were at the show, what were your key takeaways? How will you use the contacts and information from the show to improve your business? Where will you go from here? Let us know using the form below. We’d love to hear from you!

If you have questions or want to set up a no-obligation call with an expert from OTC, then contact us today. We’re ready to work with you!