Industry

Top 3 Takeaways From NADA 2022

by Ben Price

This past weekend, NADA (National Automobile Dealers Association) Expo took place in Las Vegas, Nevada where more than 500 companies gathered together and offered products, solutions, and services related to the automotive industry. Both exhibitors from Fortune 500 companies and start-ups alike were present, offering their own experiences and takes on the industry.

This year’s NADA Show offered many interesting insights into the current state of the automotive industry, but in today’s post, we’ll be discussing the top six takeaways from NADA 2022.

Retailers Could Help Speed Up Use of EVs

Electric vehicles were a prominent topic at NADA 2022, with them being discussed at length throughout the three-day conference. Experts at the J.D. Power Auto Summit on Thursday shared that car dealers could help to speed up EV adoption

EVs are on the rise, and in combination with chip shortages and increased gas prices, they are becoming more attractive to consumers now than ever before. Chargeway CEO and Founder Matt Teske explained the importance that EVs have to the future of the industry, emphasizing that retailers need to “sell EV confidence” in order to help customers to better visualize electric energy, in the same way that they currently see gasoline.

But selling electric vehicles can be a challenge for many retailers, as not all of them have much experience with the energy sector. Teske commented on this problem, stating that “there is a gap between the energy sector and the auto sector… and dealers [need to be]  well versed in the energy sector [in order to sell] EVs.” Dealerships will need to overcome this obstacle if they wish to increase the sales of EVs.

Inventory Crunch is an Ongoing Issue

Inventory crunch, which continues to be an ongoing issue in the automotive industry, was discussed at length at NADA 2022. Chip shortages continue to be a major problem for dealerships, with supply heavily outweighed by current demand. This is at the top of dealers’ minds, with many taking a big hit in sales this past year.

A report from just earlier this month found that there was a strong correlation between supply numbers and make loyalty, with a sharp decline in make loyalty compared to past months. This is likely due to the fact that inventory shortages are widespread, with consumers forced to purchase makes that they wouldn’t normally buy because of increased prices.

But despite the inventory constraints, forecaster Thomas King predicts that retail vehicle sales are still expected to rise in 2022. King, the current president of the data and analytics division at J.D. Power, predicted that the retail sales are likely to increase to up to 13.8 million in 2022, up from 2021’s 13 million.

Importance of Staffing and Retention Rates

Employee turnover rates and staffing has been an ongoing issue in the automotive industry for quite some time, and this problem was brought up during the Expo. This problem, which was prominent even before the COVID-19 pandemic in 2020, has only gotten worse since then. 

As of September 2021, the average turnover rate in the automotive industry is 46%, which is an all-time high. The turnover rate for sales consultants in the industry is even higher, reaching an abysmal 80%.

NADA Expo speakers shared that, in order to overcome these staffing challenges, automotive workers will need to rethink what they have to offer their employees. Some of these challenges involve offering improved job security and offering better benefits, but also by transitioning into a more tech-driven workflow. Using advanced systems like a TMS can greatly improve workflow for dealerships, by alleviating eliminating time spent on paperwork and other tasks and increase productivity.

Sign Up for Super Dispatch

Speaking of technology-driven work, Super Dispatch offers a TMS solution that allows automotive workers to move cars faster and easier than ever before. Whether you’re a broker, auctioneer, or dealership, Super Dispatch can boost your productivity and workflow. Sign up for a demo today!

Published on March 17, 2022

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