INSIGHTS INTO THE US VEHICLE MARKET FROM GEOTAB CONNECT 2024
WORDS BY ANBY ALCOMENDAS
At the Geotab Connect 2024 event , Mark Strand , Senior Director of Economic & Industry Insights at Cox Automotive , discussed the dynamics and future trends of the US vehicle market .
In his presentation , he highlighted the market ’ s status and its significant fluctuations and challenges influenced by economic factors , consumer sentiment , and global events over recent years .
Despite predictions of economic downturns , 2023 has shown remarkable resilience , supported by strong labour markets and steady consumer spending . Here are the key themes and trends he observed :
Economic Resilience Against Predicted Downturns
The economy has defied several predicted recessions , showing resilience even in the face of rising interest rates and persistent inflation pressures .
This is largely thanks to significant fiscal measures , including legislative actions like the Creating Helpful Incentives to Produce Semiconductors ( CHIPS ) for America Fund , which injected substantial capital into the market .
These interventions have played a crucial role in sustaining economic activities , preserving employment levels , and enhancing consumer confidence despite the adversities .
Labour Market Dynamics
Although overall employment numbers are robust , labour force participation rates have not fully rebounded to pre-pandemic levels . While real earnings growth has seen positive development , economic vulnerability still persists as evidenced by increased part-time and gig employment .
This suggests that while aggregate employment figures appear stable , underlying issues require closer scrutiny to fully understand their long-term impact .
40 ISSUE 46 APRIL 2024 / WWW . AFMA . ORG . AU