The Southern Automotive Conference (SAC), held recently in Chattanooga, Tennessee, brought together some of the biggest names and brightest minds in automotive and parts manufacturing. The Southeast region continues to establish itself as a growing automotive logistics hub, with investments in this sector reshaping both the regional economy and the global industry landscape. Victoria Drake, Capstone’s Senior Director of Business Development and a specialist in automotive manufacturing logistics, attended the event and shared insights on key industry concerns and developments.

1. Expanding Investment and Partnership in the Southeast
   The Southeast has become a magnet for automotive manufacturing investments, drawing major OEMs and their suppliers. Victoria noted that this is reshaping local communities, with partnerships between OEMs, universities, and business councils driving a new era for the region. The collaboration is paving the way for infrastructure sharing, as seen with Mazda and Toyota’s recent initiatives. Such partnerships underscore the region’s commitment to becoming a significant player in automotive and parts manufacturing, and as Victoria pointed out, “We are witnessing the birth of the ‘New Motor City’ right here in Chattanooga.”
2. The Shift to Electric Vehicles (EVs) and the Complexity of Hybrid Production
   The automotive industry is making substantial investments in EVs, supported by government incentives and funding. However, Victoria observed that consumer preferences are leaning toward hybrid vehicles as a transitional step, presenting unique challenges for manufacturers. The complexity of producing hybrid vehicles, which require both electric and combustion engine technologies, can create complications in supply chains and retooling processes. Capstone is well-positioned to support OEMs in this transitional period, with our ability to flexibly manage supply chain resources and optimize processes across both EV and traditional vehicle production.
3. Addressing the Labor Skills Gap
   The industry’s move toward advanced automotive technologies highlights an urgent need for a multi-skilled workforce. Companies are investing in education and training programs in collaboration with universities to keep pace, aiming to cultivate a new generation of skilled workers. At Capstone, we understand these challenges. Our focus on technology-enabled workforce solutions and performance-driven labor allows us to support our partners by providing the specialized skills they need. By leveraging our national scale, we can quickly mobilize skilled workers through our pay-for-performance model, delivering operational efficiency and cost savings.
4. Increasing Competition and Global Market Pressure
   With over 2,000 automotive suppliers operating in the region, competition is fierce. OEMs face heightened pressure from international competitors, particularly in the EV market. Capstone’s comprehensive logistics solutions — spanning warehousing, freight management, and last-mile fulfillment — enable us to provide end-to-end support that gives our partners a competitive edge. We help manufacturers streamline their operations, control costs, and maintain continuity across supply chains.

Capstone Logistics is committed to helping automotive manufacturers navigate these complex dynamics. Here’s how we support our partners in the automotive sector:

• Customized, Scalable Solutions:
  We blend our logistics expertise into existing processes without reinventing the wheel. Whether it’s warehouse management, tactical labor operations, or freight brokerage, we provide tailored solutions that scale with your needs.
• Technology-Enabled Efficiency:
  Our APEX Operations Suite provides real-time data and insights, empowering our partners with the visibility they need to optimize operations, reduce waste, and respond quickly to market shifts. Our proprietary technology integrates seamlessly across all facets of the supply chain, from warehousing to last-mile vehicle delivery​​.
• Pay-for-Performance Model:
  At Capstone, our culture is driven by performance first. Our performance-based labor model ensures efficiency and accountability, saving our partners up to 25% on labor costs while enhancing productivity​.
• Expertise in High-Touch Logistics:
  Our team of over 20,000 associates brings unmatched expertise to every project, backed by a robust national footprint. We provide comprehensive support across warehousing, transportation, and last-mile delivery, ensuring your supply chain runs smoothly and efficiently​.

 
 
The Southern Automotive Conference underscored the Southeast’s growing importance in the global automotive industry. Capstone is proud to support this evolution — in the backyard of our headquarters — by helping manufacturers overcome challenges and seize opportunities. We are not just another manufacturing logistics provider; we are your partner in success. Together, we’ll navigate the road ahead and achieve your business goals.