Electric Vehicles: the Market and Its Future Workforce Needs
Total Page:16
File Type:pdf, Size:1020Kb
ELECTRIC VEHICLES: THE MARKET AND ITS FUTURE WORKFORCE NEEDS ECONOMIC & POLICY ANALYSIS GROUP Los Angeles County Economic Development Corporation Los Angeles County Economic Development Corporation 444 S. Flower Street, 37th Floor Los Angeles, CA 90071 (888) 4-LAEDC-1 www.LAEDC.org Shannon M. Sedgwick Christine Cooper, Ph.D. August 2012 This report was commissioned by the Pacific Gateway Workforce Investment Network. The LAEDC Economic and Policy Analysis Group offers objective economic and policy research for public agencies and private firms. The group focuses on economic impact studies, regional industry analyses, economic forecasts and issue studies, particularly in water, transportation, infrastructure and environmental policy. Every reasonable effort has been made to ensure that the data contained herein reflect the most accurate and timely information possible and they are believed to be reliable. The report is provided solely for informational purposes and is not to be construed as providing advice, recommendations, endorsements, representations or warranties of any kind whatsoever. Table of Contents MARKET AND INFRASTRUCTURE 1 Introduction 3 2 Electric Vehicles Market 4 Consumer Perceptions 4 Energy Costs and their Influence 6 Incentives for Purchase 7 EV and HEV Market 10 3 Electric Vehicles Infrastructure 12 4 Continued Investment 19 Incentives 19 Infrastructure 20 Training 20 WORKFORCE 5 Training Programs 25 Workforce Training 25 6 Occupations for Electric Vehicles 31 Directory of Occupations 33 This page intentionally left blank Photo Credit: Flickr MR38 MARKET AND INFRASTRUCTURE 1 This page intentionally left blank Economic and Occupational Analysis Electric Vehicles: Market and Workforce 1 Introduction New emissions regulations and advances in technology have led to the emergence of hybrid and electric vehicles. There are three classifications of electric vehicles: hybrid-electric vehicles (HEV), which have a smaller combustion engine that is supplemented by the energy stored in the battery; plug-in hybrid electric vehicles (PHEV), which have an electric motor in addition to an internal combustion engine; and all-electric vehicles (EV), which have only an electric motor. Plug-in electric vehicle refers to both PHEVs and EVs. Photo Credit: Cars with Chords While most individuals understand that HEVs and PEVs are more beneficial to the environment further research and development. Laws and from the reduced consumption of fossil fuel and regulations will also push consumers and public little to no emissions, widespread adoption has and private entities to move towards more been slow in coming due to several negative environmentally-friendly options in their vehicle perceptions held by potential customers. choices. Successful wide-spread adoption depends upon effectively addressing each concern. Electric vehicle charging stations are necessary for most plug-in hybrid vehicles and all battery- Incentives for purchase, such as rebates, tax electric vehicles. As PEVs become more exemptions, utility rate reductions, special parking prominent, a charging infrastructure is required to privileges and HOV stickers have helped facilitate overcome the issue of limited range. adoption by increasing the perceived benefits of ownership for electric vehicles. Incentives beyond Still, the future of this sector is promising, as the consumer level include grants or advanced consumer awareness and preferences for lower financing to fund the adoption of alternative and emitting vehicles grow. electric vehicles in transportation fleets and Economic and Policy Analysis Group 3 Electric Vehicles: Market and Workforce Economic and Occupational Analysis 2 Electric Vehicles Market Consumer Perceptions Consumer behavior is complex. While most individuals understand that HEVs and PEVs are more beneficial to the environment because of their reduced consumption of fossil fuels and fewer emissions, widespread adoption has been slow in coming due to several negative perceptions held by potential customers. For some consumers, these perceived inconveniences may Photo Credit: Ariel Adams outweigh the perceived benefits of owning a PEV. upfront price differential does exist (largely due to the high cost of the electric battery) the increased Persistent concerns that exist in regards to PEVs reliability and reduced maintenance costs are their reliability, the upfront price differential associated with HEVs and PEVs lower the total between EVs and conventional vehicles, range, cost of ownership of the vehicle in comparison to the availability of supporting infrastructure and conventional vehicles. Savings from reduced fossil services and vehicle safety. Successful wide-spread fuel consumption lowers the cost of ownership adoption of electric vehicles will depend upon even further. understanding these perceptions and effectively addressing each one. As PEVs become more Exhibit 2-1 commonplace, social influence will also influence Hybrid Vehicle Prices and Incremental Pricing 2010 potential customers in their decisions to purchase a vehicle. Incremental Model HEV Price Pricing Cadillac Escalade $ 80,575 $ 6,525 Chevy Silverado 43,080 11,768 Reliability Chevy Tahoe 52,123 6,675 Ford Escape 31,990 7,793 HEV and PEVs must adhere to the same quality Ford Fusion 27,950 3,925 standards as conventional gasoline engine vehicles. GMC Sierra 43,450 9,808 Modern electric vehicles have been in production GMC Yukon 56,265 6,145 Honda Civic 23,800 3,403 since the 1990s and both electric drive systems Mercury Mariner 30,980 5,510 and batteries have proved to be reliable. Mercury Milan 28,180 3,010 Additionally, they tend to have less moving parts, Nissan Altima 26,780 1,780 require less routine maintenance, and their Toyota Camry 26,150 1,930 regenerative braking systems (HEV and PHEV) Toyota Highlander 38,060 7,798 wear less. In reality, these vehicles have proven to Toyota Prius 24,735 n/a be more reliable compared to conventional Average n/a $ 5,852 Source: AOL Autos vehicles. Price Differential Range Exhibit 2-1 shows prices of selected 2010 model According to the U.S. Bureau of Transportation hybrid-electric vehicles and their incremental price Statistics, the average American drives less than 40 over the combustible engine version. While an miles in one day’s time. The average range of EVs 4 Economic and Policy Analysis Group Economic and Occupational Analysis Electric Vehicles: Market and Workforce is about twice that, and PHEV and HEVs have a A workforce trained in the service of PEVs is also significantly higher range, reaching hundreds of required, including: automotive technicians and miles. In instances where this statistic doesn’t mechanics trained in HEV and PEV maintenance apply, new technological advancement in the EV and repair; electricians trained in the proper field has offered solutions. installation of different types of EVSE; and first responders trained to respond in emergency There are several ways to address the daily situations involving HEVs and PEVs with high- practicability concerns stemming from range limits voltage batteries. Specialized education and of PEVs. New lithium-ion battery technology has training programs are being developed and offered increased efficiency in power storage, allowing for in all of these areas through trade and technical smaller batteries or increased power storage in schools, community colleges, universities and batteries of equal size. Electric vehicle courses provided by the manufacturers of vehicles infrastructure is becoming more commonplace; and EVSE (typically arranged through employers). many municipalities and private businesses are installing vehicle charge stations for their patrons, and advances in quick or fast charge technology Vehicle Safety has reduced the time required to charge an EV battery. Finally, battery exchange programs are Potential PEV customers may have concerns for another option in increasing the range and life of vehicle safety with the presence of a high-voltage PEVs. All of these features are working in tandem electric battery. The fears of what may happen if to make PEVs more competitive with their the vehicle malfunctions, is involved in a collision, combustible engine counterparts. how it reacts to extreme weather (heat and cold), or what may happens in wet conditions, all exist as In addition to the specifications of their deterrents to potential customers. In response to manufacture, driving conditions and driving style these concerns, HEV and PEV manufacturers also impact the range of PEVs. have housed the electric batteries in sealed enclosures that have met all vehicle safety testing standards, and have insulated all high-voltage Supporting Infrastructure lines. Additionally, they have developed a safety mechanism that deactivates the electrical systems Electric vehicle charging stations are necessary for in case of emergency. For added safety, most plug-in hybrid vehicles and all battery- manufacturers provide model specific instructions electric vehicles. When a consumer purchases a for first responders to train them on how to PEV, the supporting EVSE is installed at their respond to emergency situations safely and residence, and this is where the majority of the deactivate the high-voltage systems to reduce risk battery charging will take place. As PEV vehicles of injury to the driver and the responder. have become more prominent, municipalities and public and private entities have started to install public charging stations at the site of their Social Influence