Today, Honda, Nissan (NSANF), Toyota (TM) and Subaru (FUJHF) all operate manufacturing plants across the United States, with Toyota and Mazda planning a new $1.6 billion auto assembly plant in Alabama that will employ around 4,000 people when it opens in 2021. Last year, Japanese car makers created 1.6 million jobs in the US, according to the Japan Automobile Manufacturers Association.
While Japanese car makers claim to build one third of all vehicles in the United States, and purchased $61.2 billion in US auto parts in 2018, many of those cars use imported Japanese parts, which were worth $16 billion last year.
Because of the combination of population growth, rising incomes, falling equipment prices and urbanization, the number of air-conditioning units installed globally is set to jump from about 1.6 billion today to 5.6 billion by the middle of the century, according to the International Energy Agency.
BNEF expects electricity demand from residential and commercial air conditioning to increase by more than 140% by 2050 – an increase that’s comparable to adding the European Union’s entire electricity consumption. Air conditioning will represent 12.7% of electricity demand by the middle of the century, compared to almost 9% now, it thinks.