Here's Why Mechanics Should Start To Think About Changing Jobs Very Soon

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If you make a living turning wrenches, JP Morgan thinks your job will soon be obsolete thanks to the Porsche Mission E.

Try to spend the next couple of seconds thinking of an industry that hasn’t been affected by the advent of the Internet. Go ahead, we’ll wait. Tough right? Now try to think of the number of businesses that have been killed off because of the Internet. Much easier. Included in that list are travel agencies, Blockbuster and services like it, heck, even retail giants like Walmart and Kmart are suffering massive blows one Amazon Prime membership at a time.

Now, CNBC is reporting that financial giant JP Morgan thinks electric cars will have a similar effect on many businesses when they go mainstream, leaving behind a lot of “losers.” Given that Tesla, Volkswagen, and a slew of other automakers are working hard to ensure that the change happens sooner than later, that day will come in a not so distant future. So which industries exactly are at risk, why, and how can they be saved? Some impacted businesses will be the most obvious including the oil and gas industry, which will begin to see demand for their goods taper off as consumers shift to drawing from the electric grid. Demand for electricity-producing natural resources like coal and natural gas could rise.

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However, electric cars, which indirectly consume natural resources used to produce electricity are still more efficient than their internal combustion engine counterparts. The most heavily impacted industry, however, will be the car parts and service industry. Given the relative simplicity of EVs, less service is needed to keep them running. Just think, no oil changes, less moving parts subject to wear and tear, and even brake pads that don’t wear out quickly thanks to regenerative braking systems supplementing each stopping event. "EVs have 20 moving parts compared to as many as 2,000 in an ICV, dramatically reducing service costs and increasing the longevity of the vehicle," said analysts.

It’s estimated that EVs cost 10% of what it usually takes to keep an ICE vehicle running. Even the build process is simpler thanks to a lessened need for parts, the battery and electric motors replacing literally thousands of components needed to keep an internal combustion engine running and concentrating the bulk of the parts costs into just a handful of components. JP Morgan thinks the negative effects will extend to car finance firms as scrap values for internal combustion-engined cars will drop, which chips away at the amount of money they can make when they repossess and resell the cars. On the flip side, battery and semiconductor manufacturers could end up being the big winners in this shift. Either way, expect big changes.

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