20 September 2023
WICHITA, Kan. (KSNW) – “Because we already know at some point, somewhere in automotive is going to slow down,” said analyst Jeremy Hill with the Wichita State CEDBR.
Hill says many are watching the strikes closely, and his analysis shows if wages go up for automotive workers that could have a direct impact on Kansas aerospace worker pay rates in the long term.
“If automotive does get a 40% increase, and they will probably negotiate to less than that, it’s going to make our wages go up even higher than that rate here in the aerospace (sector) within Kansas,” said Hill.
Hill says there is no direct correlation between immediate pay rate changes in the aerospace industry based on the automotive strikes. However, if rates go up significantly for automotive workers on the higher end of wages, that will eventually have an impact here in Kansas.
“So when something is negotiated for the higher-end wages in automotive, it directly affects the aerospace sector,” said Hill.
Hill also points out there are many factors that have to come into play to put higher wage pressure on aerospace manufacturers, but he also says the “big three” automotive makers in the U.S. are watching closely what happens with wages and strikes.
So are those who sell cars in Wichita.
“We’re relatively happy with where we are right now as far as inventory goes,” said Mike Wildeman with Donovan Auto & Truck Center in Wichita. “I think we are all watching the strikes. It’s important because it will affect inventory at some point, depending on how long it lasts. If It goes on for some time, then cars are not going to get built.”
Wildeman says they have seen pressure on the used car markets as supplies have been tight in the last few years. He says that pressure could continue if new car supplies would get into a slowdown from more strikes.
He also says they have worked very hard to find used vehicles at a good price so they have a good supply. But many will continue to watch the new car supply with uncertainty over strikes.
“There’s always frustration when there’s uncertainty in the market. So, yeah, there’s nothing you can do about it. You just work with what you’ve got,” said Wildeman.