Industry Analysis & Industry Trends
The Automobile Body and Trailer Manufacturing industry in China developed rapidly in the past five years due to strong growth in automobile manufacturing and the development of road transportation industries. China's automobile body and trailer manufacturers can be divided into two types: part plants affiliated with large automotive groups, and professional body and trailer manufacturers.
Industry revenue is estimated at $11.5 billion in 2012, up 15.9% for the year, with annualized growth of 20.7% in the five years through 2012. Exports are expected to increase 12.3% in 2012 to $3.2 billion, as foreign demand recovers from the global recession of 2009. Exports account for an estimated 28.3% of industry revenue in 2012, down from a peak of 80.5% in 2005.... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a high capital intensity level. Although production tends to rely on large-scale investment in capital equipment, particularly for large firms, there is still a heavy reliance on labor inputs. Larger firms tend to be more technologically advanced than smaller companies.
The capital-to-labor ratio in the industry is 1:1.3 in 2012. This means that for each dollar invested in capital inputs, about $1.30 will be spent on labor. However, the low cost of labor in China understates the level of labor inputs and distorts the ratio in favor of capital.
The capital to labor ratio is expected to rise in future years as domestic manufacturers increase their research and development activities and invest more in manufacturing technology and equipment... purchase to read more