IN THE NEWS

🚗 Could EVs Dent Auto Repair Business? (WSJ)

Electric vehicles (EVs) could eventually make the business of oil change and air-filter replacements obsolete.

EVs have fewer mechanical parts prone to failure than those powered by internal-combustion engines, per a 2022 report from the Auto Care Association and the Automotive Aftermarket Suppliers Association—no air filters, antifreeze, spark plugs or oil changes.

• In short: EVs generally require much less maintenance. To be clear, mechanics will still be in demand because EVs and hybrid vehicles have more sensors.
• EVs create more demand not just for the parts themselves but also for the calibration tools that auto-repair shops require to fix them. But oil changes, filter changes, and spark-plug work? Not so much.

This comes as President Biden’s administration is hoping that two-thirds of all new vehicles sold in the U.S. by 2032 are all-electric. The goal: accelerate the country’s green energy transition.

Why it matters:

As the U.S. (and the world) shifts to electric vehicles in the coming decades, it’s important to consider the parts and service impacts. Parts and service is a central source of profit for auto dealers in particular. The $800 billion auto maintenance industry is generally “recession proof,” and expected to grow to $1.6 trillion by 2031.

• AAA estimates that maintenance and repair on electric vehicles cost $949 a year, or about $330 less than on a gasoline-powered car on average if maintained according to the automakers’ recommendations.
• While EVs might require less-frequent repairs, they tend to be more expensive. Plus, EVs are a big-step change in technology, but it will take a long time for them to steer business away from the car-repair and parts business.
• Not to mention, EVs are still far from commonplace in the U.S. EV sales accounted for only 5.8% of all the 13.8 million new vehicles sold in the country last year, an increase from 3.1% the year before, per Kelley Blue Book

💼 Your Job Isn’t in AI Jeopardy Just Yet (Economist)

Predictions of an imminent economic revolution might be overstated, per The Economist.

Legal services, accountancy and travel agencies came out at or near the top of professions most likely to face disruption. Still, the transformation will likely take longer than headlines suggest.

• Economists have issued gloomy predictions before, both with AI and the advent of the internet. In some cases, technological advances increased demand for skilled labor.
• The share of working-age people in employment is at an all-time high. Countries with the highest rates of automation and robotics, such as Japan, Singapore and South Korea, have the least unemployment.

Why it matters:

This time could be different, but history suggests job destruction happens more slowly than we might realize.

• In time, governments will allow some jobs to be replaced. But the delay will allow the economy to do what it always does: create new types of jobs as others are eliminated. The AI economy will likely create new occupations that today cannot even be imagined.

AI may profoundly change the world, but that isn’t the same thing as turning the economy upside down for the worse.

CHEERLEADING’S BIG BUSINESS  

Beyond the sidelines

Although cheerleading might evoke images of vibrant pom-poms, pretty looks, and enthusiastic team support during games, it can also be a rigorous athletic discipline.

Cheerleading evolved from a sideline activity to an independent sport, frequently transcending the boundaries of the school arena.

It merges gymnastics, acrobatics, and dance into a single, challenging sport. Often, it cultivates a sense of exclusivity among students, given how difficult it could be to join the high school cheerleading team.

For some, participating is a symbol of prestige.

Cheerleading Fraternity

Cheerleading, now mainly associated with femininity, actually originated with men alongside gridiron football at Ivy League institutions in the 19th century, when most universities admitted only men.

In 1898, spontaneous cheers erupted from the crowd as University of Minnesota student Johnny Campbell took the field to lead a unified chant, marking the birth of modern cheerleading.

He leaped over the fence and cheered: “Rah, Rah, Rah! Ski-u-mah, Hoo-Rah! Hoo-Rah! Varsity! Varsity! Varsity, Minn-e-So-Tah!”

But the best cheerleading teams often originate from one place — Texas.

Corsicana, Texas

Have you ever heard of Corsicana? Probably not.

It’s a small town famous for one of the best cheerleading teams in the country. A Netflix documentary, Cheer, follows the cheerleading team from Navarro College in Corsicana, Texas, preparing for the national championships in Daytona Beach, Florida, which they’ve won 16 times.

The show provides an inside look into the intense world of competitive cheerleading, showcasing the dedication and hard work required to become an elite cheerleader.

And the top cheerleaders can establish their own brands, garnering international recognition, brand contracts, and paid sponsorships

The highest-earning cheerleaders tend to be those with the biggest fan base on social media, like Gabi Butler, who’s 25. She’s considered one of her generation’s best, and her salary per paid sponsorship can range between $47,000 and $69,000.

Not too bad, huh?

And that’s just the tip of the iceberg.

Many cheer athletes slowly develop multiple income streams, as this sport is just like any other — you’ve only got so much time to shine, and you need to make the best of it.

Dive deeper

Explore the business of cheerleading with this Netflix documentary.

SEE YOU NEXT TIME!

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