Driving automotive innovation

The automotive industry is undergoing a transformative shift, driven by the increasing demand for sustainable and intelligent vehicles, the rapid advancement of technologies, and the evolving global landscape. Reindustrialization is emerging as a key strategy for automotive manufacturers to adapt and thrive in this dynamic environment.

According to a report by the Capgemini Research Institute, The resurgence of manufacturing: Reindustrialization strategies in Europe and the US, 66 percent of automotive organizations already have a comprehensive strategy in place or plan to develop one.

By embracing sustainable practices, investing in innovation, and providing training for its workforce, the automotive industry can establish a more resilient, competitive, and sustainable future.

What is reindustrialization?

Reindustrialization is the re-establishment of global supply chains and manufacturing operations, often with the aim of bringing them closer to – or even within – domestic markets.

Our commitment to reindustrialization extends beyond economic growth. It encompasses job security for future employees, the nurturing of local talent, imparting social education, championing environmental benefits, and diligently mitigating all risks – whether they stem from supply chain vulnerabilities, natural disasters, or ecological impact. Reindustrialization is not just about profits; it’s about shaping a sustainable and resilient future for all.”

– Supply chain executive from a US-based global automotive organization

Resilience and sustainability drive reindustrialization

Automotive organizations are focused on building resilient supply chains and addressing climate change through reindustrialization

Strategic focus on domestic manufacturing, EVs, and batteries

Domestic manufacturing and electric vehicles (EVs) are top priorities for reindustrialization in the automotive sector. Government support is seen as key to success.

Sustainability and gigafactories: Electrifying the future

Reindustrialization is viewed as crucial for achieving climate goals, and 54 percent of automotive organizations are either building or planning to build gigafactories for electric vehicle (EV) batteries, primarily in continental Europe.

Technology as a driver of innovation

Sixty-six percent of automotive organizations are optimistic about reindustrialization driving innovation. More than half of automotive organizations are committed to increasing investment in digital technologies to boost productivity and 61 percent to combat climate change.

A highly skilled workforce for a new industrial era

Reindustrialization will require a more highly skilled manufacturing workforce. In the automotive industry, 70 percent of organizations see the need for a more highly skilled workforce with creative, digital, and engineering skills. Sixty-six percent recognize the need to increase wages and reshore manufacturing jobs to retain talent.

Action steps for acceleration