Five issues to watch in 2017

New years don't always mean new beginnings. Sometimes, they simply serve as milestones.

And, if there ever was a year for milestones, 2017 is probably that year. There were a number of big stories that unfolded last year, really big stories. The kind that break and break again, always making news. And they are stories that are sure to keep us busy in the year ahead.

Here is a short list of some issues we expect to be making headlines this year.

1. AUTO INDUSTRY: Who will win in the great autonomous vehicle development race?

The next frontier may just be the roads we drive every day.

Technology is changing and shaping the world, redefining the limits of engineering and pushing creativity further. Nowhere is that more evident than in the race to design the perfect autonomous vehicle.

The concept of the driverless car is reshaping the approach to cockpit design, as consumer demands change with the adaptive technology. In a December interview with Automotive News Europe, Faurecia CEO Patrick Koller explained this dichotomy as the need for increased connectivity and careful attention to safety. It's a unique balance that will take time—and partnerships—to perfect.

One of those partnerships was announced at the North American International Auto Show in Detroit earlier this month. Nexteer Automotive Corp. and Continental Automotive Systems Inc. said they would form a joint venture to supply safety systems for autonomous cars.

Meanwhile, tire makers are rushing to form partnerships of their own as they work to design the kind of tire that best matches the demands of autonomous vehicles and their passengers, who are likely to be more attune to the noise, vibration and ride of the vehicle once driving is no longer a main focus. To ensure proper development, tire manufacturers are working to get unique data. And a lot of it.

One example of that data-gathering effort is Goodyear's partnership with Tesloop Inc. The tire maker is tapping the data collected by Tesloop's fleet of semi-autonomous Tesla test vehicles. The vehicles have racked up 250,000 miles since 2015, the companies said last month, adding they've done it all on Goodyear tires.

The race to create the perfect driverless car isn't limited to test tracks and civilian roadways. It's becoming, quite literally, a race.

Roborace is working on developing a race car series featuring driverless cars, and Michelin Motorsports already is on board as an official tire partner.

2. BREXIT: Where does Britain go from here?

The United Kingdom stunned the world when its citizens voted in July to leave the European Union. That decision has left plenty of unanswered questions for international business.

"This is not a good day for Europe—and, in my view, certainly not for the U.K.," Daimler A.G. CEO Dieter Zetsche told Automotive News in the days following the vote. "Geographically, the country may be an island; politically and economically, it is not."

The split from Europe, which should be complete in 2019, affects the countries' trade, but should impact the export market in particular. Companies building in the U.K. would no longer be guaranteed tariff-free access to its biggest export market, unless that is specifically negotiated in the departure terms.

Even with the political shake-ups, though, 2016 was kind to the U.K. automotive industry. According to the Society of Motor Manufacturers and Traders, Britain built 1.61 million cars in the first 11 months of 2016, more than in any full year since 2004. Auto makers anticipate building 1.7 million cars in Britain this year, but some say they have concerns about sustaining current trends once the impact of Brexit is felt.

Chemical industry leaders, however, remain on edge. A survey of delegates conducted during the Chemical Industries Association conference in London on Nov. 17, found that 56 percent of those participating felt pessimistic about Brexit's impact on their business.

3. NAFTA: What will the North American supply chain look like moving forward?

President Trump's promises to renegotiate the North American Free Trade Agreement have raised plenty of questions for U.S. companies with supply chain networks that extend across North American borders.

Shortly after the Presidential election in November, a senior executive with a major automotive supplier told Automotive News that the long-term effects of changes to NAFTA could disrupt supply chains but offer little to the U.S. in the way of manufacturing jobs. High tariffs on Mexican-made parts could force companies to move production to Asia to stay competitive, according to the source.

"Our customers don't want to pay more for U.S. content," the executive said. "It could make us uncompetitive. We'd face threats from Asian suppliers."

Still, the hard-line stance taken by the new administration seems to have already had some impact on manufacturing.

Earlier this month, for instance, Ford Motor Co. reversed its decision to build a $1.6 billion assembly plant in Mexico, and opted instead to invest $700 million in the manufacturing of 13 electric vehicles in the U.S. Among the reasons cited for the decision was pressure from the new administration.

4. MINING, OIL & GAS: Can the industry rebound soon?

Last year was a tough one for businesses serving the mining, oil and gas sectors. Many, though, remain optimistic that things will turn around soon.

And maybe they are. Slowly anyway.

Crude oil prices plummeted in 2016, dropping to $29.92 in January, according to IndexMundi. Since then, prices have continued to gradually increase, reaching $48.29 in October, but it's still a far cry from the $132.55 10-year high in July 2008.

Still, the upswing in crude oil prices is benefiting the natural rubber industry in particular, at least in the short term. The Association of Natural Rubber Producing Countries reported Jan. 13 that the Organization of the Petroleum Exporting Countries had agreed to cut output by 1.2 million barrels per day for six months from January 2017. The decision to do so was announced in November and crude oil prices rose by 24 percent between September and December, ANRPC said.

During that same time, natural rubber prices increased by 43 percent, according to ANRPC.

Meanwhile, the belting industry still is trying to steady itself after declines in the mining industry, driven principally by coal, iron ore and copper. The good news, industry leaders said during NIBA's annual convention in September, is that sand, gravel and construction are starting to see improvement.

5. LABOR CONTRACTS: Who will be at the negotiating table?

This will be a pinnacle year for labor relations, especially for tire makers. A number of union contracts at tire plants across the U.S. have expired or are set to expire in July, meaning the United Steelworkers union will be especially busy at the bargaining table.

Titan International Inc. plants in Des Moines, Iowa; Freeport, Ill.; and Bryan, Ohio, are currently negotiating new deals while working off of the previously expired contract.

Employees at six Bridgestone/Firestone plants—Akron; Des Moines, Iowa; Russellville, Ark.; La Vergne, Tenn.; Warren County, Tenn.; and Bloomington, Ill.—are working under contracts that are set to expire in July. Meanwhile, Goodyear employees at five plants—Akron; Gadsden, Ala.; Topeka, Kan.; Danville, Va.; and Fayetteville, N.C.—also have contracts with a July expiration date.

Sumitomo Rubber Industries' Tonawanda N.Y., plant, also will be negotiating a new contract when the current pact expires in July.