As Donald Trump takes office for the second time, the question everyone is asking is “how will this shape the future of America”. The only thing we know for sure is that this won’t be a rehash of the 2016 presidency: this time we’re seeing a more experienced Trump with a keen understanding of how his legacy will last beyond the next four years, and a determination to set in stone lasting change. Expect big swings, severe overhauls of current legislation and a bigger focus on long-term goals.
What’s also different this time is the backing he has from others across the business world. Tech company leaders are lining up behind him in ways they never did before, with SpaceX founder Elon Musk firmly seated at Trump’s right hand, advising on everything from business efficiency to the future of America’s space and aerospace policy.
Blue Origin and Amazon founder Jeff Bezos has also signalled his intend to work with the administration, expressing optimism about the upcoming President’s agendas on space and business.
It’s clear we won’t have to wait long after inauguration day to see what the plans are for the second Trump administration – change is coming quickly and there are a number of ways that this will impact the future mobility industry with immediate effect.
1. The New Space Race
American innovation is central to Donald Trump’s agenda for his second term, which is why Musk, as an engineering and mobility visionary, is such a key signing to his squad. It’s likely that the billionaire’s backing will see more federal funds directed into space programmes, with an increased commercialisation of NASA projects, such as Artemis, which will benefit those already in the space sector like SpaceX, Virgin Galactic and Blue Yonder.
Competing against countries like China adds another reasoning to an increased focus on the sector, building to a new space race that’s set to create huge opportunities for engineering experts with their eyes on the stars.
2. eVTOL Takes Off
Just as with the space sector, one of Trump’s biggest goals is to see America overtake China as the leader in technology and engineering.
One major area of interest for the new president is the increased development of Advanced Air Mobility (AAM) projects – primarily the growth of the Electric Vertical Takeoff And Landing (eVTOL) market. He’s already unveiled his vision of up to 10 new “Freedom Cities” built on undeveloped land:- futuristic cities in which eVTOL vehicles will become the main form of transport.
In a 2023 speech he said:
“Dozens of companies in the USA and China are paving the way to develop electric take-off and landing vehicles for families and individuals … Just as the United States led the automobile revolution in the last century, I want to ensure that America, not China, leads the revolution in air mobility.”
The AAM industry itself is subject to intensive regulation, much of which Trump has indicated he will be rolling back in the interest of advancing wider development and attracting investment.
3. Reduced Regulation For Better Investment
A decreased regulatory environment is a common theme among Donald Trump’s policies, which offers a glimpse into the potential growth of many future mobility businesses.
Both Trump and Musk have signalled their frustrations with the “outdated” rules of the FAA which create numerous obstacles that slow development of eVTOL rollouts and space launch approvals. Reduction in the regulations may offer more incentives to investors who could be put off by the lengthy processes in demonstrating compliance with regulations.
However the move is a gamble, with some noting that regulations are mainly for safety in an industry where that is paramount.
Additional reductions are likely to be seen in regulation of competition across all businesses, particularly within commercial aerospace businesses, which could open up newer opportunities for joint-ventures, mergers and acquisitions, creating new opportunities across the market.
4. De-emphasised Climate Change Programmes
One of Donald Trump’s more controversial promises is his commitment to scaling back climate change policies and programmes, including reverting the USA’s commitments to the Paris Climate Agreement.
The impact of this will be significant with changes across all markets, not just in the US but the rest of the world. One particular area relevant to future mobility is the future of Sustainable Aviation Fuel (SAF), which Trump has said he will be scaling back along with his wider reversal of the Inflation Reduction Act (IRA) which creates incentives and was set to introduce tax credits for firms that introduce emission-reducing biofuels.
Trumps overturn of this could result in a scaling back of the SAF industry, which largely imports its non-petroleum feedstocks from China, and increased need for more homegrown fuel production from conventional energy suppliers.
5. More Opportunities for Engineering Experts
Many of the new President’s plans are focused around bringing more opportunities to Americans, and reducing the need to rely on experts, businesses and governments elsewhere.
This creates huge opportunities for experts who either already work in future mobility or have the technical skills that could cross over into this sector.
Most importantly, it highlights the potential that this market has to grow, as the backing of the President and has tech-focused support signals a shift in priorities that are being picked up by the bigger players in the sector.
Where eVTOL and other AAM projects were once led by tech startups that could only last as long as their investor capital, major aerospace leaders including Boeing, Rolls Royce and Airbus are now picking up on the potential and launching their own development projects.
The result is increased competition between the ambitious startups, the aerospace giants and the engine OEMs who supply both sides. With all three fighting for a limited number of engineering specialists with the qualifications and industry knowledge to bring visions of future mobility to life, on top of the incoming demand that this presidency is set to bring, this is a very good time to become an expert in this market.
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Coalesce Management Consulting delivers future mobility experts to project leaders across the United States. Our dedicated future mobility team work with some of the largest aerospace and future mobility businesses in the world, as well as ambitious startups launching exciting projects with the potential to change the world.
Get in touch to learn more about how our team launch the future of transportation and mobility, or if you’re an engineering expert looking for your next project, join our virtual workbench of specialists who we can deploy as individuals or part of a team to our world-leading partners.