Happy motoring: Global automobile production 1900 to 2016

Graph of global automobile production numbers, various nations, historic, 1900 to 2016
Global automobile production (cars, trucks, and buses), 1900-2016

This week’s graph shows global automobile production over the past 116 years—since the industry’s inception.  The numbers include car, trucks, and buses.  The graph speaks for itself.  Nonetheless, a few observations may clarify our situation.

1.  Global automobile production is at a record high, increasing rapidly, and almost certain to rise far higher.

2. Annual production has nearly doubled since 1997—the year the world’s governments signed the Kyoto climate change agreement.

3. China is now the world’s largest automobile producer.  In terms of units made, Chinese production is double that of the United States.  This graph tells us something about the ascendancy of China.

4.  Most of the growth in the auto manufacturing sector is in Asia, especially Thailand, India, and China.  In 2000, those three nations together manufactured 3 million cars.  Last year their output totaled 34 million.  After 67 years of production, Australia is about to shut down its last automobile plant.  Most of its cars will be imported from Thailand, and perhaps a growing number  from China.

5. Auto production in “high-wage countries” is declining.  As noted, the Australian industry has been shuttered.  US production is down 5 percent since 2000, and Canadian production is down 20 percent.  Over that same period, production fell in France, Italy, and Japan, though not in Germany.  Since 2000, auto production increases in Mexico (+1.7 million) are roughly equal to decreases in Canada and the US (-1.2 million).

6. There are some surprises in the data:  Turkey, Slovakia, and Iran all make the  top-20 in terms of production numbers.

Graph sources: Motor Vehicle Manufacturers Association of the United States, World Motor Vehicle Data, 1981 Edition; Ward’s Communications, Ward’s World Motor Vehicle Data 2002; United States Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics, Table 1-23

Deindustrialization: Or, what are half-a-billion Canadians and Americans going to do for a living?

Graph of United States Gross Domestic Product, by sector, 1947 to 2016, highlighting deindustrialization
United States Gross Domestic Product, by sector, 1947 to 2016

Canada and the US continue to undergo rapid deindustrialization.  Our economies are increasingly service-based, and that should worry us.

The graph above looks complicated, but the key idea is contained in two trends.  And both are negative.  First, note the declining contribution manufacturing is making to United States (US) Gross Domestic Product (GDP).  The red, dotted line shows manufacturing’s percentage contribution.

Manufacturing now makes up just 12 percent of US GDP, and less than 10 percent in Canada.  The decline of manufacturing is even more evident when we look at employment rather than GDP.  According to the US Bureau of Labor Statistics, goods-producing industries (manufacturing, mining, construction, agriculture, etc.) now employ roughly 15 percent of America’s working population.  Nearly 85 percent are employed in the service sector.  The situation is similar in Canada.  According to Statistics Canada data , approximately 77 percent of Canadian workers are employed in the service sector, and this percentage continues to rise.  Both nations continue to deindustrialize.

Second, note the rise in the importance of three service sectors: 1. Finance, insurance, real estate, and rentals (the broad blue line); 2. Professional and business services (green line); and 3. Education and healthcare (red line). A US economy built upon General Motors, General Electric, and U.S. Steel has given way to one built upon JPMorgan Chase, Walmart, and UnitedHealth Group.

Note, especially, the blue line: finance and real estate.  With the 2008 financial crisis still fresh in our minds, and its effects still resonating through global economies, it should worry North Americans that banking and real estate have replaced manufacturing as the one of the largest economic sectors.

Manufacturing is declining, our energy sectors may have to contract as we deal with climate change, most North American fisheries have been depleted and agriculture seems to need fewer farmers and workers each year, low-wage nations continue to claim Canadian and American jobs, and we’re told that the robots are coming.  By mid-century there will be more than 450 million people living in Canada and the US.  Every politician in every party and every engaged citizen should be asking the same question: what are nearly half-a-billion North Americans going to do for a living?

We are not doomed to decline, but decline will be our lot unless we actively engage in a collective democratic effort to build a new, sustainable economy for North America.

Graph source: US Dept. of Commerce, Bureau of Economic Analysis


Back on track: North America needs high-speed passenger rail

A graph of passenger rail utilization, selected nations, average kilometres per capita
Passenger train use, kilometers per person per year (average), selected countries, 2014 or 2015 data

Not every problem has a clear solution.  Here’s one that does.  The problem is the exponential growth in air travel and attendant greenhouse gas (GHG) emissions.  The solution is high-speed passenger rail.

Compared to airplanes, high-speed trains can move people faster, more comfortably and conveniently, more cheaply, and with a fraction of the GHG emissions.  And Canada is uniquely placed to benefit from a passenger-rail renaissance; one of the world’s largest passenger-rail manufacturers, Bombardier, is a Canadian company.

Air travel is increasing exponentially.  As I detailed in a previous blog post, air travelers now rack up about 7 trillion passenger-kilometres per year.  And that figure is projected to double by 2030.  If we are to retain a tolerable climate, most of the planes will soon need to be grounded, excepting perhaps those used for trans-oceanic flights.

While airplanes may remain our best option for crossing oceans, within continents higher-speed rail (130–200 km/h) and high-speed rail (200+ km/h) can move people faster and more comfortably.  Such trains can transport passengers from city-centre to city-centre, eliminating the long drive to the airport.  Trains do not require time-consuming, invasive airport security screenings.  These factors, combined with high speeds, mean that for many trips, the total travel time is lower for trains than for planes.  And because trains have much more leg-room and often include observation cars, restaurants, and lounges, they are much more comfortable and enjoyable.

Many people will know the Eurostar high-speed line that connects Paris and other European cities to London via the Channel Tunnel.  Top speed for that train is 320 km/h.  A trip from downtown London to Downtown Paris—nearly 500 kms—takes 2 hours and 20 minutes, about the time it takes the average North American to drive to the airport, check in, check baggage, clear security, and get to his or her airplane seat.

China recently inaugurated its Shanghai Maglev line, with a maximum speed of 430km/h and average speed of 250 km/h.  Japan’s famous “bullet trains” went into service more than 50 years ago.  They now travel on a network of 2,764 kms of track and reach speeds of 320 km/h.

North America has one high-speed line, the Acela Express that links Boston, New York, Philadelphia, Baltimore, and Washington. The maximum speed is 240 km/h, through average speeds are lower.  Travel time from New York to Washington is 2 hours and 45 minutes, including time spent at intermediate stops: an average speed of 132 km/h.  The Acela Express trains were built by a consortium 75 percent owned by Canada’s Bombardier.

This brings us to the truly good news: Canada is home to a world-leading passenger rail manufacturer, Bombardier.  You will find the company’s rolling stock in the subways of New York, London, and more than a dozen other cities.  Its intercity trains run throughout Europe, Asia, and North America.  And its high-speed trains are currently moving passengers in China, Europe, and the US.  Until a recent merger of two Chinese companies, Canada’s Bombardier was the largest passenger train manufacturer in the world.  Canada has a huge opportunity to create jobs and economic activity while leading the world in low-emission, cutting-edge rail technology.  As climate change forces Canada to scale back fossil-fuel production and maybe even auto manufacturing, Canada will need new economic engines.  Passenger-rail manufacturing can be an economic engine of the future.

Not all the news is good, however.  Many will have recent heard news reports about Bombardier.  Over the past few years, Federal and provincial governments have provided cash injections to the company totaling more than a billion dollars, largely to cover costs on its C-Series passenger-jet program.  Bombardier is in trouble.  Indeed, it may have made one of the biggest business blunders in recent decades: financially imperiling a world-leading train maker to make a huge gamble on planes just as climate change forces us to ground the planes and build a trillion-dollar passenger rail system.  Bombardier has recently announced that it may merge its train division with the German company Siemens.

Bombardier has been foolish.  Canadian citizens and their governments have been equally foolish: handing over billions of taxpayer dollars and not receiving a single passenger train in return.  But we can be smart.  That means building a North American network of fast trains.  Bombardier can prosper by being one of the main suppliers for that network.  High-speed passenger rail can be a win-win-win: jobs for Canadians and Americans; fast, comfortable travel; and a high-tech, low-emission transportation system on this continent like the ones being built in Europe and Asia.

The graph at the top of this article shows average per-person passenger-train utilization.  The data is from the most recent year available: 2014 or ’15.  Passenger rail utilization rates in Canada and the US (an average of less than 40 kms per person per year) are among the lowest in the world.  In China, average use is more than 800 kms per person per year and rising very rapidly.  In many European nations, it is more than 1,000 kms per year per person—25 to 30 times the Canadian and US rates.  There is huge growth potential for the passenger rail sector in North America.

Graph sources: OECD.


Unimaginable output: Global production of transistors

Approximate global production of transistors, per capita, selected years, 1955 to 2015
Approximate global production of transistors, per capita, selected years, 1955 to 2015

Global production of transistors has surpassed 20 trillion per second—hundreds of quintillions per year.  Transistors are the primary building blocks of modern electronic devices: computers, smartphones, TVs, radios, and other devices.  Transistors use semiconductor materials to amplify (think transistor radios) or switch (think digital computers) electronic signals and electrical power.  Transistors can be individual components, but are found in far greater numbers embedded in integrated circuits—in computer “chips.”

The graph above shows global production of transistors per year per person.  Per capita values are used here to make the size of the numbers more manageable.  In 1955, production was one transistor per 1,000 people—essentially zero.  Radios and TVs in the mid-’50s used vacuum tubes rather than transistors and integrated circuits.

Just ten years later, in 1965, production had increased 1,000-fold, to one transistor per person per year.  Transistor radios were gaining popularity in the 1960s.  Each radio contained several transistors—often 5 to 10.

While production in 1965 was one transistor per person per year, by 1975 it was nearly 1,500 per person.  Individual transistor components had been replaced by semiconductor computer chips, each containing thousands or millions of individual transistors.

The 1980s saw the proliferation of computers and home electronics.  By 1985 global production of transistors had surpassed 40 thousand per person per year.  By 2000 it was 65 million.  Today it is 56 billion per person.

The world now produces more transistors in one second that it did in one year in 1980.

The global population could not afford to purchase, on average, 56 billion transistors per person per year if prices had remained at 1965 or 1985 levels.  In the latter-1950s, a transistor radio with 5 transistors cost nearly $500 in today’s dollars.   Now, for not much more money, you can buy an iPhone that contains hundreds of billions of transistors.

A pound of rice sells for approximately one dollar and contains about 25,000 grains.  For that same dollar you can buy—as part of a memory stick or a phone—not 25,000 transistors, but billions.  A transistor today is thousands of times cheaper than a grain of rice.

Much of the news about the world is negative: famine, genocide, fisheries collapse, climate change, extinctions, resource depletion.  But we also need to acknowledge that our global hyper-civilization is truly wondrous.  We have built human systems of nearly incomprehensible power and productivity.  This is both their great strength and their great peril.  Nonetheless, if we are to safeguard some version of this civilization into the future we must appreciate and value it, despite its profound flaws.  We must take the time to understand it.  And we must work together to reform it.

Graph sources: VLSI Research.   Note that values are approximate and were derived, not directly from data, but from an existing graph.  Thus, while overall trends and conclusions are robust, individual values for specific years are approximate.