Industry Analysis & Industry Trends
Revenue for the Automobile Manufacturing industry is expected to total $440.2 billion in 2012, up 10.1% from 2011. Industry revenue has been increasing at an annualized rate of 20.3% during the past five years, driven by rising domestic demand across urban and rural areas, and increasing exports.
Industry profitability was relatively low in 2008 at 6.2% of revenue, due to weaker local demand, falling prices, rising production costs and increased sales of low-priced and low-profit cars. Since then, however, profit margins have been widening as the industry benefited from booming automobile sales growth. Profit is estimated at 9.7% of revenue in 2012.... purchase to read more
Industry Report - Industry Investment Chapter
The labor to capital cost ratio represents the number of labor units used for every unit of capital. ACMR-IBISWorld uses the sum of total wages, management, administration, and research and development expenses as a proxy for labor, and depreciation of the current year as a proxy for capital.
For every dollar spent on wages, about 37 cents are invested in capital. This reflects the high level of capital tied up in manufacturing equipment.
Large-scale automated production requires significant capital investment. Economies of scale prevail for successful firms in this industry. Most manufacturing processes involve repetitive activities that are automated to increase production speed and cost efficiency.
Significant investment is required to upgrade plant and equipment... purchase to read more