Industry Analysis & Industry Trends
The Car and Automobile Manufacturing industry endured weak sales during the recession but has since recovered during the current five years due to rising consumer confidence and low interest rates. In addition, more Americans returned to work and consumer sentiment began to recover, making customers more likely to purchase big-ticket items, such as new vehicles. Over the next five years, strengthening economic conditions and returning consumer confidence will continue to fuel the industry, albeit at a slower rate. Automakers will also seek growth potential in the hybrid and fuel-efficient car market as they focus on developing gas-electric hybrid vehicles to increase fuel efficiency and cut exhaust emissions... purchase to read more
Industry Report - Industry Investment Chapter
Assembly plants are highly automated production lines fitted with high-tech machinery and equipment. Firms in this industry must spend large sums on their plants and equipment, with periodic reinvestment in the case of equipment failure. For every dollar spent on labor, the average industry firm will invest nearly $0.68 in capital equipment. This is one of the most capital intensive manufacturing industries, due to the complexity of automation machinery and the large capital investments needs to achieve economies of scale.
At the same time, this industry employs a substantial labor force. Although the ratio of capital investment to labor expenditure is quite high, wages nonetheless account for a large portion of cost structure, at 4.6%... purchase to read more