Industry Analysis & Industry Trends
Despite plunging revenue during the recession, subsequent increases have offset declines. In particular, continued strength in export demand has contributed to the industry's growth. Looking ahead, the industry is projected to continue growing despite cooling export demand as the dollar begins to appreciate. Domestically, renewed truck transportation will drive diesel engine sales, and demand from manufacturing is poised to gain traction in light of anticipated consumer spending... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity is medium based on the ratio of depreciation to wages. In 2013, wages are estimated to account for about 11.2% of total industry revenue. Meanwhile, depreciation costs, which serve as a proxy for capital investments, are estimated to total about 2.3%. Relative to human labor, the manufacturing process requires equal amounts of capital in the form of automation equipment. The assembly process involves repetitive actions that may be automated to increase production speed and cost efficiency, but humans are required to fine tune, grind, polish and perform quality control throughout the assembly line... purchase to read more