Industry Analysis & Industry Trends
Revenue for the Automobile Manufacturing industry is expected to total $559.8 billion in 2014, up 11.3% from 2013. Industry revenue has been increasing at an annualized rate of 14.2% 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 10.8% of revenue in 2014.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on labor (including wages and management fees), about 39 cents are invested in capital in this industry. 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. Advancements in processes and product development have been an important contributor to improved industry productivity in recent years.
Components are purchased in modular form and are assembled in automated production lines... purchase to read more