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New York’s Electric Transportation Sector Offers Booming Job Opportunities

Posted by Cayli Baker on Apr 29, 2021

Report shows New York-based jobs in electric transportation (ET) projected to grow 32% by 2024; with 882 businesses already employing 4,200 ET-related jobs in 61 counties, ET industry delivers diverse employment across the value chain and expands opportunities for workers in adjacent and supporting industries.

ALBANY, April 29 2021 — Today national business group Advanced Energy Economy (AEE) released a report examining the economic and workforce potential as New York State’s Electric Transportation (ET) industry expands. The report reveals that 882 businesses in 61 of New York’s 62 counties employ an estimated 4,200 electric transportation-related workers. This figure is expected to increase by 32% by 2024 to an estimated 5,500 workers.

“This report shows New York is well-positioned to lead the growing U.S. electric transportation supply-chain. With its strong research and development, diverse precision manufacturing facilities, and a skilled manufacturing workforce, the state’s EV jobs are really set to take off.” said Claire Alford, associate at Advanced Energy Economy.

The report, Electrifying New York: Economic Potential of Growing Electric Transportation, was prepared for AEE by BW Research Partnership, a leading workforce and economic development research consultant. Key findings include:

  • In 2019 there were an estimated 882 businesses with 4,200 workers involved in ET-related activity statewide. By 2024, there are projected to be 5,500 workers involved in ET activities, representing a 32% increase over five years.
  • ET-related jobs can be found in 61 of the 62 counties in New York state. While ET employment is relatively concentrated among five counties, more than 2,200 ET workers can be found across the remaining 56 counties.
  • The Gross State Product (GSP) contribution of ET activity in New York state is estimated to be $487 million. This is about equivalent to the GSP contributions of Motion Picture Theatres and Hardware Stores across the state.
  • These jobs are diverse and can be found across the value chain. Professional and Business Services represents the largest section of the value chain.
  • Annual EV sales and market share have increased substantially across the state, but EV adoption remains lower than many other states. EV market share in New York state is 16th nationally. EV adoption must increase if the state hopes to meet its goal of having 850,000 zero-emission vehicles (ZEVs) deployed by 2025.
  • ET growth offers opportunities across the value chain. One-fourth of ET-related jobs across the state are in Professional and Business Services. Repair & Maintenance, Manufacturing, Wholesale Trade, Distribution, and Transportation each accounted for more than 15% of the ET-related workforce. Another 48,000 workers are in Immediate Adjacent and Secondary Adjacent Manufacturing Industries. ET-related jobs could offer a lifeline to workers in declining Secondary Adjacent Manufacturing Industries.
  • Workers in Adjacent and Support Industries are generally representative of the overall state workforce. However, women remain severely underrepresented.
  • New York is already a national leader in climate change mitigation policies but must do more to address the transportation sector. With the passage of the Climate Leadership and Community Protection Act (CLCPA) in 2019, New York set ambitious emissions reductions targets which can only be met by accelerating transportation electrification.

The report also includes discussion of ET-related training and education opportunities available to New York residents. The research team identified four training programs specifically geared towards ET-related activities in the state. There are fourteen additional precision metal working programs and nineteen vehicle maintenance and repair programs.

“With the right policies in place, New York’s lawmakers can accelerate the electric transportation market and help meet the state’s ambitious emissions reductions goals,” said Alford. “State requirements for EV adoption, offering tax credits for ET-related companies to relocate to New York, and funding a network of public charging stations can all create a virtuous cycle of job creation for the state.”

The report offers the following policy recommendations for New York to facilitate EV market growth and capitalize on economic benefits: 

  • Increase the adoption of EVs in the state to meet the goal of 850,000 zero-emission vehicles by 2025 and drive critical economic development. The state should look to pursue a requirement to progressively require 100% zero-emissions vehicle sales. New York must also encourage adoption by opening up the state to direct sales and providing consumers with more financial incentives.
  • Establish a tax credit for EV supply chain companies that relocate to New York or that locate in disproportionately impacted areas or designated Regional Economic Development Council (REDC) areas. Creating tax incentives that can be scaled based on location would be a critical tool for attracting significant new private investment to the state.
  • Expand the availability of the Electric Vehicle Infrastructure Training Program (EVITP) curricula across New York, with an emphasis on broad geographic reach. By partnering with junior colleges, trade schools, and labor organizations, the state can create a steady pipeline to develop its EV workforce.
  • Increase the state’s fleet of electric school buses by providing incentives, especially in communities most impacted by pollution. Offering financial incentives for adopting electric school buses will provide many benefits including improved air quality within communities across the state and cost savings for school districts.
  • Reform Electric Rates to Support Electric Vehicles. EVs must be able to charge at rates that are competitive with gasoline and diesel prices. Addressing operational cost barriers through rate design for commercial EV charging is an essential step forward. Existing tariff structures are presently the most significant operating cost barrier to faster-charging infrastructure deployment. 

 Background Materials

  • Mar. 25, 2021 Market Report: "In 2020, Advanced Energy Revenue Reached $1.4 Trillion Worldwide; U.S. Market Totals $240 Billion," detailing 16% annual growth in the advanced transportation sector, is here
  • Aug. 19, 2020 EVs 101: A Regulatory Plan for America’s Electric Transportation Future: “New York’s $701 Million Program for EV Charging, By the Numbers,” summary with link to regulatory guide is here.
About Advanced Energy Economy
Advanced Energy Economy (AEE) is a national association of businesses that are making the energy we use secure, clean, and affordable. AEE is the only industry association in the U.S. that represents the full range of advanced energy technologies and services, both grid-scale and distributed. Advanced energy includes energy efficiency, demand response, energy storage, wind, solar, hydro, nuclear, electric vehicles, and more. AEE’s mission is to transform public policy to enable rapid growth of advanced energy businesses. Engaged at the federal level and more than a dozen states around the country, AEE represents more than 100 companies in the $240 billion U.S. advanced energy industry, which employs 3.2 million U.S. workers. AEE's PowerSuite online platform allows users to track regulatory and legislative issues in state legislatures, U.S. Congress, state PUCs, RTOs/ISOs, and FERC. Sign up for a free trial at powersuite.aee.net. Follow us at @AEEnet.
 

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