Problem
Problem statement
Thousands of employees in servicing, selling, and making traditional vehicles face an unoptimistic future since most countries are preparing a transition to electric vehicles. The widespread adoption of the upcoming electric car is an essential development that nobody is talking about. From corn growers to metal fabricators and auto mechanics, the era of complete use of electric vehicles promises to upend jobs in all sectors of the world economy. Thus, the problem identified in the hypothesis statement states that massive job losses will become a challenge as the number of electric cars increases. While electric vehicles are beneficial to climate change initiatives, the jobs created in their production are less compared to those lost in the oil market industry. Therefore, the unemployment challenge caused by electric vehicle adoption will be hard to solve.
Effect of Electric Vehicle Adoption
To better understand the problem presented in the previous hypothesis statement, it is critical to comprehend the effect of adopting electric vehicles on the U.S. and global economy. An increase in the use of electric cars leads to job loss, reduced gross domestic product, and less oil market profits. Servicing, making, and selling traditional vehicles in the U.S. employs more than four million people. Thus, millions of persons stand to lose their livelihood means when electric vehicles are widespread. In addition, low demand for oil products will reduce profits for oil market participants. Although embracing electric vehicles is a great strategy for the future of the planet, it is important to prepare for the challenges associated with such a move. Finding ways to reduce the effect caused by electric vehicle disruption can prepare Americans and ensure they lead high-quality lives, especially those working in the oil in the sale, making, and servicing of traditional vehicles.
Affected Population
The population affected by the massive job losses in the oil industry is economically insecure and anxious. The most affected group in the category is employees who are sacked and not given enough time to find new jobs. When massive layoffs happen, it is difficult for company executives to handle the process effectively. Therefore, regardless of the approach each company in the oil market employs, employees will be the hardest hit by the electric car disruption. For example, due to the shift towards electric car production, automakers have started laying off thousands of workers since the making of electric cars is largely automated and requires fewer human workers compared to traditional vehicles. Employees in the oil market will be affected since they may lose their jobs due to less demand for oil products amid the popularity of electric vehicles.
The population affected by job losses in the oil industry includes employers, environmental groups, and unions. Employers will be affected by the challenge because they will fire employees and find the ones with the necessary expertise to work on emerging jobs. The process may involve upskilling and retraining of millions of workers. Environmental groups are also impacted by the challenge since they will face a dilemma of balancing green initiatives and worker conditions. In collaboration with unions, employers and environmental groups can retrain and upskill workers to salvage a part of the existing workforce in the auto and oil industry. Unions will be affected because worker conditions will play a huge role in the electric vehicle race as companies plan to build and operate new plants. As a result, unions may have to engage in intense negotiations on worker conditions with automakers and oil market participants. Thus, the high employee turnover, time spent on training workers, and finding the balance in the regulations may result in poor quality products, directly affecting the customer.
Key Demographic Factors
The key demographic factors for those involved include age, gender, and education. The retirement age for workers affected by job losses in the oil and auto industry ranges from 60 to 67 years. Thus, the age of the affected population should be between 18 and 67 years. Every person above 18 years old can work in the auto and oil industry, and they may retire at 67 years old. As a result, everyone aged 18 to 67 can be part of the affected population. Gender is another demographic feature that should be explored. The auto and oil industries do not contain many female workers. For example, about twenty-two percent of workers in the oil industry globally are women. The data shows that men are more affected than women by the anticipated job losses in the oil industry. The education of the affected population varies since a low-level employee or a senior oil engineer may be laid off due to less demand for oil products.
Technological Advances
Several technological advances consider the population affected by the problem. The three technological advances aim to increase employment domestically from electric vehicle production. For instance, increasing the manufacture of low-cost batteries would significantly reduce the cost of an electric vehicle while creating jobs to offset those lost in the auto and oil industry due to electric vehicle adoption. The current cost of the battery pack in electric vehicles is costly, which increases the overall cost for the end consumer.
Thus, increasing electric vehicle battery production creates more jobs and reduces the final automobile cost for consumers. Another way to create jobs is through building charging infrastructure in the U.S. Many construction workers can be employed to create the charging infrastructure, which offset the job losses in the oil and auto industry due to electric vehicles’ production and use (Pavlínek, 2022). Finally, increasing the production of materials and components used in making electric vehicles, such as lithium-ion cells, can create jobs domestically in the US. Human-centered Design is a problem-solving approach that emphasizes the user perspective to improve products and services. Employment promotion interventions can leverage this approach to tackle implementation challenges such as low attendance or high dropout rates. Additionally, technological advances could stimulate employers to provide specific training for potential employees to reduce their anxiety that they will not fit into the position.
Flow Battery Companies
One of the main technological advances is low-cost batteries. An organic flow battery stores and discharges energy using plentiful components, such as carbon, hydrogen, and oxygen, as opposed to a conventional redox flow battery, which employs metal ions as the electrolyte. An organic flow battery for bulk storage applications is more effective and sustainable thanks to a recyclable organic electrolyte and an incredibly scalable architecture. One of the top businesses offering solutions for long-term energy storage is CellCube. Redox flow battery solutions for on- and off-grid applications are offered by CellCube to satisfy the demand for energy storage infrastructure worldwide (Here’s the top 10, 2022). CellCube has a stellar record for completing the most flow battery projects in the industry. Other examples include ESS Tech Inc., Infinity Energy Systems, Largo Inc., Lockheed Martin Corporation, Primus Power Solutions, SCHMID Group, Sumitomo Electric Industries, UniEnergy Technologies, and VRB Energy (Here’s the top 10, 2022).
Initial Constraints
The problem is focused on the loss of jobs due to the U.S. government embracing electric vehicles. However, for the electric vehicle industry to become profitable to the U.S., there is a need to ensure the domestic supply chain of electric vehicle production is robust. Thus, initial constraints may limit the success of the proposed technological advances because they depend on the domestic maturity of electric vehicle technology. Many electric vehicles cost more than traditional car models, making it difficult for consumers to buy. In this case, the target customer may lack the money to purchase the product. In addition, the battery, which is an important resource, is significantly expensive, amplifying the price of an electric vehicle. Finally, the availability of charging infrastructure over long distances hampers travels on the same routes.
Possible Variants
In an effort to create more jobs and increase the adoption of electric vehicles, three possible variants can be applied to the design challenge. For instance, the U.S. can embrace a hybrid approach to electric vehicles by sacrificing its zero emissions goal for ten years and avoiding thousands of job losses. Alternatively, the U.S. can create more jobs and improve Americans’ quality of life by incentivizing the construction of charging infrastructure across the country. In addition, finding a better and cheaper battery alternative would significantly reduce the cost of an electric vehicle, leading to widespread adoption (Soni, 2020). As a result, the domestic electric vehicle industry would benefit from more jobs due to increased demand from consumers.
Potential Solutions
The solutions offered to the job losses in the auto and other industries focus on increasing the use of electric vehicles. When the market share of electric cars increases, the demand for the product and its related services will be higher. As a result, private actors will be significantly motivated to invest in electric vehicle technology, leading to increased employment. The acceleration of domestic production of electric vehicles, related technologies, and parts can increase jobs in manufacturing to offset those lost in the oil industry (Soni, 2020). Furthermore, federal investment in electric vehicle charging infrastructure can fasten the transition to an all-electric car economy, enabling the country to reap the benefits of electric vehicle production.
References
Here’s the top 10 List of flow battery companies. (2022). Blackridge. Web.
Pavlínek, P. (2022). Transition of the automotive industry towards electric vehicle production in the east European integrated periphery. Empirica, 1-39. Web.
Soni, A. (2020). Driving green: Employment effects, policy adoption, and public perceptions of electric vehicles (Doctoral dissertation, Georgia Institute of Technology).