If you think that the automotive industry has nothing to do with your business, then think again. It turns out that what happens in this sector is often pivotal to the rest of the economy. Car companies bring in new techniques and technologies, and soon after, everyone else follows.
So what can you learn from the auto industry? Let’s take a look.
Investing In Robots Is A Good Idea
Most entrepreneurs would laugh at the idea of investing in robots for their enterprises. How could robots possibly help?
Well, the answer is more complicated than many imagine. Today, robots have moved well beyond those seen in the car industry in the 1960s. In 2022, they come with machine learning technology and can work safely alongside human beings, not just behind perspex safety walls.
We’re at a pivotal moment in the history of robotics. Now, suddenly, the technology exists to install them in a range of applications, including novel ones, such as restaurants and barbershops.
The result? Higher productivity and profits across the board for first-movers.
The Production Line Is Everything
Auto companies were among the first manufacturers to introduce the concept of the production line. They did it because they wanted to make better use of labor. Training everyone to perform all necessary tasks in the car plant was not efficient.
Today, though, many companies still underestimate the power of the division of labor. They continue to ask their staff to perform multiple operations, even if a cheaper, simpler business model is available.
As such, the production line is everything, whether you operate a full-scale factory or an accounting firm. You want people to perform repeatable tasks as often as possible to drive learning and increase throughput, ultimately lowering your costs.
Don’t Be Afraid To Outsource
The auto industry isn’t afraid to outsource. In fact, they pass a lot of their processes onto third parties and simply use their auto plants for assembly. Examples include custom perforating, electronics, and even sheet metal molding.
Your business should do the same. Outsourcing production elements are often cheaper than relying on in-house solutions. Furthermore, it lets you focus more intensely on your core competency. You don’t want to waste time learning about accounting if you run a bike shop.
Always Innovate
Even before the likes of Tesla, the car industry was extremely innovative. Sectoral leaders, such as Mercedes-Benz, regularly introduced new technologies designed to make their vehicles safer, faster, more fuel-efficient, and more comfortable. For instance, in the 1990s, manufacturers introduced anti-lock braking systems. In the early 2000s, climate control became standard. And in the 2010s, automakers equipped vehicles with sensors that allowed for adaptive cruise control, autonomous parallel parking, and emergency braking, giving birth to a whole new era of cars: software defined vehicles.
For entrepreneurs in the rest of the economy, the message is clear: always innovate. You don’t necessarily have to invest in new technology, though that can help. Instead, you can simply look at ways of making better use of your existing assets to meet your customers’ needs.
So, which of these lessons have you learned from the automotive industry?