The automotive industry experienced a real slump during the recession, with some automakers closing plants and consolidating their operations just to stay afloat. It seems these troubles are a thing of the past because Ford recently reported a double-digit increase in July sales. Increased demand for some of the company's vehicles has also resulted in the need for additional employees. The significant increase in sales prompted Brent Snavely of the Detroit Free Press to say this could be the best year since 2006 for the automotive industry.
The company posted an 11 percent increase in July sales, with most of the increase attributed to the demand for small vehicles and pickup trucks. The company posted an 89 percent increase in sales of its subcompact Fiesta and a 23 percent increase in the number of F-Series trucks sold. During the past three months, the automaker sold more than 200,000 pickup trucks. Snavely reports that the increased demand for pickups is due to the fact that millions of the pickups on the road are at least eleven years old. This situation should keep pickup sales steady through the rest of 2013.
The increased demand for some vehicles has prompted company executives to pledge to increase production capacity. The company currently has a low inventory of the Fusion sedan and may also need additional capacity to produce more of its Escape SUVs. The automaker also plans to hire approximately 3,000 engineers and other professional employees, but recruiters are having a hard time finding skilled employees to fill some of these positions. In the past, automotive manufacturers hired engineers based on their ability to design engines or configure production machinery. The skills needed by today's automotive industry professionals are much different due to the use of computerized vehicle components and high-tech equipment.
Ford also plans to hire more workers for its Kansas City assembly facility. The company will be adding a total of 600,000 units to its production output for 2013. This includes 200,000 units for the F-Series line of pickup trucks. Rich Smith of The Motley Fool says the company plans to increase employment in its US manufacturing facilities by 12,000 jobs by 2015. The company will also be creating additional salaried jobs for automotive industry professionals. More than 2,000 American jobs have already been created by the company in 2013.
The increased demand for new vehicles is just one of the good things happening in the automotive industry. Consumers are also having an easier time getting loans, so more people have the ability to buy cars, trucks, vans, and sport utility vehicles for business and personal use. The success of the automotive industry is closely tied to the health of the economy, so keep an eye on industry trends and economic reports to see if automotive manufacturers continue to post significant gains.
(Photo courtesy of siraphat / freedigitalphotos.net)
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