Industry Analysis & Industry Trends
Revving up demand
A number of negative factors have weighed down industry manufacturers over the past five years, including rising gas prices and the generally poor economic state. However, the industry is positioned to make turn around, with strong growth in 2011 continuing through 2012, and modest growth through 2016. Automakers will be focused on improving energy efficiency by using industry products like lower-weight electrical cables and electronic replacements for existing hydraulic systems... purchase to read more
Industry Report - Industry Investment Chapter
Automotive electronics manufacturing carries a moderate level of capital intensity, as industry operators require sophisticated machinery, skilled-labor and often dedicated research staff. For every dollar spent on labor, the average industry firm will spend about $0.19 on capital. The increasing automation of everyday manufacturing processes has enhanced the industry's capital requirements. For example, casings and various other plastic components are produced through plastic injection molding, a fairly automated process. Automotive electronics manufacturers keep their capital intensity to a moderate level by outsourcing the actual production of electronic and plastic components to semiconductor manufacturers... purchase to read more